Agricultural Project Finance Lender Seeks to Raise £4million through Crowdstacker
Crowdstacker is now working with Prime Agricultural Finance to raise £4million for its agricultural project finance practice.
Prime typically lends to farmers, small holders and horticulture businesses to assist in the deployment of projects which help them become more environmentally friendly or technologically up-to-date.
It is seeking to raise £4million via a Bond, called the Prime Agri Bonds, on the alternative finance platform. And in return is offering 6 per cent interest per annum over the two-year lifecycle of the Bonds.
Countryside business uses alternative finance to fund environmental and technological advances
Typical projects funded by Prime include building and kitting out Anaerobic Digestion (AD) plants on farms.
AD plants work by breaking down waste to produce gas which can be used as fuel and material which can be used as fertiliser.
Farm production of animal waste is roughly estimated to be around 80 million tonnes per year. And that waste has to go somewhere.
As part of a push to bring environmental sustainability into British farming farmers and small holders have options to process this waste and turn it into something useful. Using AD plants they are able to create gas which can be sold to energy suppliers, and bi-products which can be used as nutrient-rich fertilisers.
Capital raised via the Prime Agri Bonds will also be used to finance other projects such as equipment purchase, although the focus will be on projects which help businesses improve their environmental sustainability.
Help the rural economy and your ISA
The Bonds issued on the Crowdstacker platform are eligible to held as part of an Innovative Finance ISA, meaning any interest earned will be tax-free, up to the annual limit.
Your capital is at risk if you lend to businesses. Lending through Crowdstacker is not covered by the Financial Services Compensation Scheme. Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future. For more information please see our full risk warning https://crowdstacker.com/risk-warning.