How to get funding for agricultural businesses

How-to

As an agri-business, accessing the funds you need, when you need is critical. But how can agri-business better access finance without over relying on debt?

With the right strategies and expertise, a number of different finance options may be able to help you to more easily access the funds you need to protect and grow your business.

Here are a few steps that you can take to ensure you get the right finance for your business.

Step 1: Get to know the different working capital solutions

The first step to accessing better finance options is to familiarise yourself with the different types of working capital solutions that are available.

These finance solutions can include invoice financing, supply chain finance, trade finance, merchant cash advances, asset financing, and more.

Depending on the size of your business and your specific financial needs, you can choose the right working capital solution that fits your needs.

At Fifo Capital, we offer free 15-minute consultations. These are designed to make it easy for you to understand which working capital finance solutions would be best suited to your business and whether you wish to pursue this further.

Step 2: Analyse your current financial situation

Before you start looking for better finance options, it’s important to assess your current financial situation.

Make sure to review your current cash flow, debts, assets, and liabilities.

This will give you a better idea of the financial resources you have available and what type of working capital solution might be best for your business.

Step 3: Research potential lenders

Once you’ve assessed your current financial situation and identified the type of working capital solution you’re looking for, it’s time to research potential lenders.

There are many lenders in Australia that offer different types of financing solutions.

Make sure to compare interest rates and loan terms to find the best deal for your business.

Step 4: Look to reduce risk

Agricultural businesses can have a stronger financial footing by adopting a more diverse funding mix.

Rather than relying on debt-based business loans alone, by making use of your business’ working capital you will lessen your reliance on uncertain bank approvals, and reduce your overall risk of not being able to access the funds you need.

Step 5: Apply for finance

Once you’ve found a lender that meets your needs, it’s time to apply.

Make sure to read the agreements carefully and understand all the terms and conditions before you sign.

Also, make sure to provide all the necessary documents and information to the lender to increase your chances of getting approved.

Step 6: Monitor your repayments

Finally, once you’ve been approved for finance, it’s important to monitor it closely.

Make sure to keep track of your payments and make sure that you’re in good standing with your lender.

This will help you avoid any issues down the road and ensure that your business is on the right track.

The takeaway

There are definitely strong opportunities for future growth in Australia’s agri-industry, but there are also a number of challenging factors to face, too. So, getting the right funding mix for your business — while also trying to mitigate risk and reduce your reliance on debt — is critical.

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