Seasonal repayments for farm machinery, explained

Most loans assume the same income every month. Farming doesn't work like that. Seasonal or structured repayments let you match your finance to when your money actually comes in, so you're not stretched in the quiet months.

How it works

Instead of equal monthly repayments, the lender sets a schedule around your income. That might mean larger repayments after harvest and smaller ones, or none at all, in the off season. Some lenders offer quarterly, half yearly or annual repayments. What's available depends on the lender and your operation.

Who it suits

• Grain growers and croppers with income at harvest.
• Horticulture, from almonds and stone fruit to grapes.
• Dairy farmers whose income moves with the season.
• Contractors whose work peaks at certain times of year.

What lenders look at

• Your farm's income pattern and history.
• The machinery you're buying, new or used.
• Your existing finance and commitments.

This guide is general information only and doesn't take into account your objectives, financial situation or needs. It isn't financial, tax or legal advice. Talk to us about your situation, and to your accountant about tax.