Breedr has launched a new £10m funding product designed to help farmers purchase livestock and other inputs without securing borrowing on fixed assets.
According to the live trading platform, which was launched in 2019, the cashflow fund can also free up capital to invest in infrastructure, based on the value of livestock on the farm.
The fund will provide up to 80% of the value of cattle or sheep – either those which a farmer plans to purchase or already has on the farm.
It charges a flat fee per head per day which is only repayable at the point of sale. No periodic payments are required.
Farmers who have weighed their animals and recorded other basic information about their cattle on the app are eligible to apply for funding against the value of their animals.
Ian Wheal, CEO of Breedr said: “We have now raised a £10m fund which we are prepared to lend to farmers who have a track record of recording with us.
“As a farmer I know that this year we’ve seen huge price inflation, so many are struggling with cashflow, even though beef and lamb prices are the highest in generations.
“We want to support all farmers including beef, sheep, new entrants, tenants, growers, finishers and supply chains.”
Livestock farming is notoriously unpredictable and keeping cash flowing can be a challenge, Mr Wheal added.
“Banks generally only fund against fixed assets like land and buildings, but we recognise that not only are your animals are a valuable asset in themselves, they grow in value every day.”
Farmers who want to access the cashflow fund should sign up to the free Breedr app and then contact the trading team using the in-app tools.