A new lender dedicated to the needs of agriculture is being launched later this year, the first bank to be focused exclusively on farmers since the Agricultural Mortgage Corporation was created in 1928.
The launch comes at an unsettling financial period for farmers, amid the knock-on effects of the coronavirus pandemic and the post-Brexit future of subsidies and markets for UK food products still being unclear.
The newly licensed Oxbury Bank, based in Chester, aims to provide farmers with the specialised lending they need to run their farms and provide savings accounts to any individuals or business that want to support British farmers and UK agriculture.
The bank understands the agricultural sector and the challenges that farmers face and uses its industry knowledge and proprietary technology platform to make quick and appropriate decisions on credit facilities.
Their aim in this is to ensure that the bank’s customers can spend less time dealing with administration and spend more time on their farms and growing their businesses.
The bank also provides flexibility, as farmers will be able to access all their lending and savings accounts 24 hours per day via the bank’s secure online platform and mobile app.
The bank’s flagship lending product, Oxbury Farm Credit, will be a revolving credit facility to fund working capital. This will provide farmers with a flexible, convenient and competitive alternative to a bank overdraft or trade finance.
Oxbury will focus initially on larger arable and dairy farmers, offering both secured and unsecured lending. Further expansion across the UK, across agricultural sectors, and with further input suppliers will take place in the coming months.
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