29 July 2010
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1 February 2010
United Auctions and Lloyds TSB launch new HP credit line for farmers
United Auctions (UA) and Lloyds TSB Commercial Finance have launched a new credit line to help farmers buy cattle more easily.
A Hire Purchase (HP) facility has been developed to offer UA customers finance for buying livestock through their network of auction marts across Scotland.
The extended credit line is thought to be unique in the UK, as it provides financing for farmers at the time of purchasing livestock, to simplify the process. As well as providing a cash flow boost, the facility’s interest rates are fixed at the time of purchase, meaning the marginal cost of financing cattle is easily identifiable.
Repayments are carefully scheduled to coincide with the sale of livestock, meaning the credit deal remains cash flow positive for the farmer.
The new product is available exclusively to UA customers.
In a move that shows their continued investment in the sector, Scotland’s leading livestock auctioneers and procurement specialists have been working with LTSB Commercial Finance since the summer on the new arrangement.
Neil McLean, Group Joint Managing Director of United Auctions, said: “We’re delighted to put this new deal together with the Commercial Finance team at Lloyds TSB that delivers an important source of finance for livestock farmers.”
David Leggat MBE, Executive Chairman of UA, commented: “In challenging times like these, it’s more important than ever that we do everything we can to help our customers - the extended credit limit from Commercial Finance is a huge vote of confidence in the future of Scottish agriculture.”
Alastair Gray, Operations Manager at Lloyds TSB Commercial Finance said: “This innovative funding facility is great news for the farming community as it gives farmers the option of spreading the cost of buying cattle at auction, as well as freeing up working capital to enable them to grow their business.
“We worked closely with the team at United Auctions to structure this complex and novel deal and look forward to continuing our long-standing relationship with the firm.”
The new arrangement replaces a financial arrangement with NFU Mutual, which recently came to an end.
A Hire Purchase (HP) facility has been developed to offer UA customers finance for buying livestock through their network of auction marts across Scotland.
The extended credit line is thought to be unique in the UK, as it provides financing for farmers at the time of purchasing livestock, to simplify the process. As well as providing a cash flow boost, the facility’s interest rates are fixed at the time of purchase, meaning the marginal cost of financing cattle is easily identifiable.
Repayments are carefully scheduled to coincide with the sale of livestock, meaning the credit deal remains cash flow positive for the farmer.
The new product is available exclusively to UA customers.
In a move that shows their continued investment in the sector, Scotland’s leading livestock auctioneers and procurement specialists have been working with LTSB Commercial Finance since the summer on the new arrangement.
Neil McLean, Group Joint Managing Director of United Auctions, said: “We’re delighted to put this new deal together with the Commercial Finance team at Lloyds TSB that delivers an important source of finance for livestock farmers.”
David Leggat MBE, Executive Chairman of UA, commented: “In challenging times like these, it’s more important than ever that we do everything we can to help our customers - the extended credit limit from Commercial Finance is a huge vote of confidence in the future of Scottish agriculture.”
Alastair Gray, Operations Manager at Lloyds TSB Commercial Finance said: “This innovative funding facility is great news for the farming community as it gives farmers the option of spreading the cost of buying cattle at auction, as well as freeing up working capital to enable them to grow their business.
“We worked closely with the team at United Auctions to structure this complex and novel deal and look forward to continuing our long-standing relationship with the firm.”
The new arrangement replaces a financial arrangement with NFU Mutual, which recently came to an end.
Notes to editors
• United Auctions (UA) are Scotland’s leading livestock auctioneers and procurement specialists. They operate a network of different auction markets across Scotland, including Stirling, Huntly, Lairg, Dalmally, Tiree, Islay, South Uist and an area office and lairage facility at Oban.• The company, which has roots going back to 1858, conducts auctions of both commercial and pedigree sheep and cattle, procures stock direct from farms for leading abattoirs and provides a farm-to-farm sales’ service for livestock
• The management team, comprising Executive Chairman David Leggat and Joint Managing Directors Neil McLean and Robin Tough, completed a management buy-out of the business from Glasgow-based property developers Elphinstone in January 2007
• United Auctions announced its plans in June 2008 to amalgamate the Perth and Stirling sales to operate from a single site at the new Stirling Agricultural Centre, which was opened in July 2009 by The Rt Hon Alex Salmond MP MSP, First Minister of Scotland.
Lloyds TSB Commercial Finance
Lloyds TSB Commercial Finance (www.ltsbcf.co.uk) is part of the Lloyds Banking Group. Its services can meet the needs of businesses ranging from start-up through to major global PLCs. This holistic approach to asset backed lending (ABL) means that customers benefit from a far more tailored approach to finance where different elements of ABL can be added to the funding mix according to the needs and lifecycle of the individual business.
• Asset backed lending offers a flexible and secure way for businesses to raise the finance they need for expansion, growth, MBOs, MBIs and other opportunities, against assets such as the debt book, stock, plant and machinery and property. Back to top | More Lloyds TSB stories
