What sort of loan if any do I need?

turfey21

Hi all,

I have a business plan to start a livery yard but that is as far as I have gone.
Land prices are so expensive and I wondered if any of you knew if I would be able to get a loan (obviously with myself putting in a proportion) to fund the purchase and be able to run it as a business.

I don't know where to go from here, I have got customers ready to use the livery if I am able to proceed with the purchase.

I have spoken to a high street bank who could not really help or point me int he right direction of how I could turn this idea into reality.

The land purchase is approx £80K

KingElvis

Ask The Dragons?

I like horses but I can't see big profits in this so, regrettably.....I'm out

turfey21

lol, ha ha, thanks KingElvis, thank was so predictable!

Have been having a look around and it appears LLoyds TSB are specialists in lending to farm land/livery yards etc

Easily pays for itself within being run for a few years with the cost of full livery these days

geoffky

how many horses..(scale) how many acres (runs) and how much have you got to show the banks commitment...maybe the bha will give you some good pointers...good luck and the game is full of non payers..

turfey21

Cheers geoffky, well hubby and I are squeaky clean, never missed any payment, ever, credit rating is excellent. There are a few options, was thinking around 10 horses on a plot of 16 acres all with stables etc. So sums add up nicely and have got people calling out for livery yards in that area.
Would have the 30% deposit, 40% at a push to put in to it, also land is not as high risk as property as property is still falling in price whereas land seems to continually be going up!

sharpy2010

This might be a silly question, but am I correct in assuming you are horsey people, in other words that you are capable of running a livery yard without having to learn how to do it from scratch?

jamesperrett

Do you have a friendly accountant? I found that having one with contacts at the bank helped to smooth the loan process. Your local NFU branch might be able to help - they're certainly good with insurance and other services for rural businesses.

James.

paddyrg

Where are you based? Be aware agricultural land doesn't have a standard price, it seems to sell for staggeringly wide spread of £3,000 - £30,000/acre, even within a short distance - so the ask price for the land doesn't mean that's it's actual value - can you haggle it down?

Fiddlestick

turfey21 wrote: »

Easily pays for itself within being run for a few years with the cost of full livery these days

There is plenty of money in equine, but the trick is actually getting the clients to (excuse the pun) pony up

CH27

Are you under 25?

turfey21

Hi all,

Thanks, we have been researching and keeping an eye on land prices in this area for the past 18 months and the approx sale price for land per acre is £8K. More for smaller parcels of land.

No I am not under 25, am in the my 30's

Thanks for the info to speak to NFU they are certainly worth a chat too

So do you all think it is possible to get finance for a working livery yard that can show it earns money each month etc. I have had 50% of people saying yes and the other 50% saying no and now I am trying to nail down somewhere where I can go and speak to them and possibly get funding in place so I know where I can look