Oxbury, the UK’s new specialist bank for farming and food, has released details of the new digital banking service underpinning its flagship product.

Oxbury Farm Credit gives farmers a revolving credit account, letting them to spread the cost of their raw material purchases to suit their cashflow.

the account aims to solve the problem of farm businesses having to fund the raw materials many months or years before receiving income from the sale of the produced goods, tying up cash in the production cycle and holding back the growth of food production.

Nick Evans, managing director of Oxbury, said: “The agricultural supply chain is not adequately supported by the incumbent banks and needs a customer service and funding revolution.

“Oxbury Farm Credit is a unique product tailored for today’s modern farming and food business and offers an entirely new way for farm businesses to manage their day to day finances.

Using its proprietary OxP banking platform, Farm Credit gives users a visual dashboard tailored precisely to the needs of farms and their suppliers, with the ability to view all their distributor invoices and manage payments, deposits and repayments from one place.

The account automates and digitises significant parts of the usual business administration associated with managing farm cashflow. It also integrates with accountancy software and other critical services, allowing seamless downloading of invoices to customers’ ledgers.

Oxbury’s digital banking service will be supported by a network of agriculture relationship managers, along with full customer service support by telephone operated by advisers dedicated to agriculture finance.

Oxbury gained its full UK bank licence in early 2020 and is in its final mobilisation stages with invitation-only customers, before launching fully to the wider market this autumn.

The bank is targeting a five per cent share of farm lending within five years of launch, in a market where 70 per cent of lending is still controlled by the big four banks.

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