When is a farmer Fund Ready or Bankable?

To determine when a farmer is ready for funding or considered bankable, it is essential to address several frequently asked questions. Many farmers inquire about why banks do not provide them with loans. This is often due to a lack of understanding of what it means to be bankable.

SerDev promotes the use of the SAFE App (SerDev African Farmers Ecosystem) to help farmers compile a portfolio of evidence for funding agents, covering all farming matters.

Requirements to be Bankable

• Successor Appointment: Farmers over the age of 55 must appoint a successor, which should be documented in their formal will.

• Good Farming Record: Maintain thorough records of cattle, their growth, health, and business accounts. Use SAFE for record-keeping.

• Land Tenure: It is preferable to have formal land tenure, such as a long lease, ownership title, or formal Permission to Occupy. Ensure the land can support the number of livestock to prevent overgrazing. Store land and related information on SAFE.

• Registered Company and Tax Compliance: Ensure your company is registered and compliant with tax regulations. Store this information on SAFE.

• Financial Literacy and Management: Basic financial literacy and management systems should be in place.

• Financial Statements: Provide annual financial statements for at least three consecutive years and monthly management accounts. Store these on SAFE.

• Informed Decision-Making: Ensure you or your successor can make informed decisions. Avoid paying yourself a higher salary than the farm can afford.

• Farming Training: You or your successor must complete some farming-oriented training. Store this information on SAFE.

• Technical Progress Records: Maintain technical records of progress, such as those in the SerDev Ecosystem. Perform monthly self-assessments on SAFE. If not in a SerDev program, hire a specialist for progress assessment at your cost.

• Activity Forecast: Develop a forecast for your livestock farming activities.

• Business Plan: Create a robust financial business plan demonstrating the ability to repay the loan.

• Creditworthiness and Security Record: Ensure you are creditworthy and have no adverse security record.

SerDev and GAD Consulting Services can assist with forecasting, business planning, and management systems, but only if all other compliance aspects are met.

If you need further details or assistance, please contact us.