Its almost unanimous, the number one problem
facing everyone before starting farming or any
other business is CAPITAL! We have highlighted
below some of the ways you can get money to
start your agribusiness.
facing everyone before starting farming or any
other business is CAPITAL! We have highlighted
below some of the ways you can get money to
start your agribusiness.
Bank Loans
The most common way people get capital to
finance their enterprise is through bank loans. You
open an account with a bank of your choice, have
it operational for a minimum of six months and you
are good to go.
The most common way people get capital to
finance their enterprise is through bank loans. You
open an account with a bank of your choice, have
it operational for a minimum of six months and you
are good to go.
You will be given a loan depending
on the amount of money you have been banking
monthly at your bank. Unfortunately since most
graduates do not have an income to deposit
regularly in a bank we have a solution that can still
help you get a loan from your bank.
on the amount of money you have been banking
monthly at your bank. Unfortunately since most
graduates do not have an income to deposit
regularly in a bank we have a solution that can still
help you get a loan from your bank.
If you completely don’t have any source of income or
capital for farming you can look for atleast ten
people (this is the minimum number of people to
form a youth group in Kenya)you know, who are
aged between 18-35 years and form a youth
group(Youth group registration services are done
at Huduma centers all over Kenya). By doing this
your youth group can easily get funding from banks
by raising only 30 % of the money being asked
for.
capital for farming you can look for atleast ten
people (this is the minimum number of people to
form a youth group in Kenya)you know, who are
aged between 18-35 years and form a youth
group(Youth group registration services are done
at Huduma centers all over Kenya). By doing this
your youth group can easily get funding from banks
by raising only 30 % of the money being asked
for.
Government Youth Funding
The Kenyan Government has launched various
funding programmes that have been designed to
specificaly target the youth. Examples of these
programmes include the Uwezo fund and Youth
fund .
The Kenyan Government has launched various
funding programmes that have been designed to
specificaly target the youth. Examples of these
programmes include the Uwezo fund and Youth
fund .
I ndividuals though have to meet certain
requirements for them to be eligible for funding.
requirements for them to be eligible for funding.
The relevant information for this can be found
here . These funding solutions can therefore go
along way in jumpstarting your farming business.
here . These funding solutions can therefore go
along way in jumpstarting your farming business.
Family and Friends
One good source of business financing that is
often overlooked is money from relatives and
friends. A gift is one of the simplest ways of getting capital for a business.
One good source of business financing that is
often overlooked is money from relatives and
friends. A gift is one of the simplest ways of getting capital for a business.
A friend or family member might decide to offer you a gift of money
to help out start a business or you might initiate
the process by asking.
to help out start a business or you might initiate
the process by asking.
Though asking your friend
or family member for a gift of money may seem
impolite, when its a startup business, it can make
sense.
or family member for a gift of money may seem
impolite, when its a startup business, it can make
sense.
Business Loans From Family and Friends
You can also ask for money from a friend or
family memebr with a promise to pay it back. Its
usually in accordance with certain terms and can
be done with interest or without interest.
You can also ask for money from a friend or
family memebr with a promise to pay it back. Its
usually in accordance with certain terms and can
be done with interest or without interest.
After asking for the money you promise to pay it back,
over a set time period, and in accordance with
certain terms.
over a set time period, and in accordance with
certain terms.
For the sake of friendship and family
ties it is always best to handle this kind of loan
the same way a bank would. This means it has to
include a signed agreement which is called a
promissory note and a time period you will pay
back the loan.
ties it is always best to handle this kind of loan
the same way a bank would. This means it has to
include a signed agreement which is called a
promissory note and a time period you will pay
back the loan.
Equity Investors
This is another way you can raise money to start
a business.This methods gives you the opportunity
is to give away part of your business to an
“equity investor.”
This is another way you can raise money to start
a business.This methods gives you the opportunity
is to give away part of your business to an
“equity investor.”
An equity investor can either be
a friend or a family member.
a friend or a family member.
This will make you
co-owners and thus share any net profits or
losses generated by your business.
co-owners and thus share any net profits or
losses generated by your business.
Did you find this useful? Please leave a
comment below
Like our Facebook page: Greenfarm organics
Follow us on Twitter: @nicokirui1
No comments:
Post a Comment