Farm & finance · News & views

Many banks and financial institutions are cutting costs by restructuring their businesses. This can mean a change in bank manager or a move to a telephone service. We look at what is happening and what you can do if you are unhappy or struggling with your new banking arrangements.

90% of small businesses get their loans from their main bank, with no shopping around for other lenders. Have you ever compared your bank's rates, terms and conditions against other lenders? You could end up saving money or being in a more flexible position.

We are delighted to have appointed an experienced agricultural banker, Peter Reynolds, to strengthen the R&BS team in the South West. Peter has 34 years experience with NatWest, including 16 years as a relationship manager for agriculture and rural businesses.

Despite the 5-3 vote from the MPC last week, Bank of England Governor Mark Carney has said the time is not yet right for an interest rate rise. At R&BS we monitor fixed rate cost of funds closely and give updates on market trends to help you to decide if you should fix your interest rates or not. 

The farming industry is bracing itself for a big change with Brexit looming. Our contacts in the banks are saying ‘business as usual’ but there are indicators of instability. What can farms and rural businesses do to prepare for a period of uncertainty? 

Are interest rates on the move? We think not which is good news for farming businesses. While interest rates are low, it’s a good time to invest too. But there will come a time when you might want to fix your interest rates - but when? Each business should draw their own conclusion based on their circumstances and approach to risk.

Many banks and rural lenders remain supportive of the farming industry. However, R&BS would encourage farms and rural businesses to plan for change and evaluate their financial options now rather than wait for the outcome of the exit negotiations with the EU.

It’s getting rare to find the main banks offering unsecured lending facilities. Tenant farmers, start-ups and those that have reached their secured credit limit find it hard to find finance. But more lenders are coming in to the market and could help you.

David West - an experienced agricultural bank manager with over 40 years' experience with Lloyds Bank has joined our team. He will strengthen our service to farming and rural clients in East Anglia.

Our main focus is finding our clients the most appropriate finance through the high street banks, farming lenders and private banks. But the number of alternative lenders are growing and here we explain their benefits.

It went down to the wire but the people of the United Kingdom voted to leave the European Union (EU). What does it mean for banking, interest rates and farming?