Although a great source of livelihood, agriculture seems like a difficult path to tread because of the constraint of capital.
This is particularly true for people who want to do agriculture on a large scale. It is one thing to do small-scale farming.
Usually, it doesn’t require excessive funding. But it is another thing to run a farm that supplies harvests to restaurants, malls, etc. because you need capital to get seeds, maintain your crops, and plan the logistics side of the business.
If you are in this position and are wondering how to access the capital you need, one thing you can do is to get a loan.
You probably just shook your head in disapproval because you don’t like loans. That’s fair, but not all loans come with negative experiences.
Likewise, some loans are relatively easy to access for people in the agricultural space. You just need to do your research on what their terms and conditions are.
Various agricultural loans have the Federal Government backing and are issued under different platforms such as Bank of Industry (BOA), Commercial Agriculture Credit scheme, real sector support facility, and Micro SME Development Fund.
I admit that some of these could be a little frustrating and time-consuming to access. They’ll usually need you to present a business plan, proof of business incorporation from the Corporate Affairs Commission, etc.
Some even require 20% part payment. But they are not your only loan option. You could try a private organization.
Try commercial banks; some of them have great funding opportunities for agribusiness owners. Just like government-sponsored loans, however, you need to understand what their terms and conditions are before committing to it.
Other non-governmental sources of funding for agribusinesses are agricultural cooperatives such as All Farmers Association of Nigeria (AFAN) and FADAMA.
These co-operatives will make your application less stressful when approaching a bank.
However, the conditions for accessing the loans are somewhat similar to commercial banks.
That is, you must belong to a cooperative and have a well-written business plan that contains a visibility study.
Alternatively, there is a much less tedious way to access funding for your agribusiness, Ceepass is quick and easy to use.
It provides farmers and agribusiness owners with the necessary tools to successfully run their business (funding is not excluded).
So far, it has empowered over 5000 agribusinesses and counting. Your business could be next.