*Letters To New FarmerMe* *Dear New Farmer* ```Financing your Agribusiness Part 1 of 2``` One day you're going to need financial help from financiers. Whether this will be a steep mountain to climb or a walk in the park just depends on you and what you do on a daily basis. For me, this is my secret sauce: 1. Maintain accurate financial records. Your bank statement or financial record is the first thing any financier is going to look at. You need to prove beyond reasonable doubt that you have the *capacity* to repay any amount advanced to you and your financial history is your mouthpiece. CASH FLOWS, CASH FLOWS!!! It doesn't matter whether you sell to Mbare or to Retail chains, you need to document your sells and expenses in a way your potential financier can understand. 2. Maintain a good credit history. If you borrow money, just repay. This will go a long way in unlocking many financial options for you. Whenever a financier is looking at your application, the only question they have is whether you will repay or default. Providing proof that you're a good debtor will make you every financier's first choice. Tip, unfortunate events befall anyone. If for any reason you're not able to meet your financial obligations, always communicate with your financier in time and always be sure to honor your word. 3. Be realistic, don't be over ambitious. Though I be no prophet, l tell you with certainity that any financier will reject an application that's beyond your financial capacity. Why ask for $10 000 when you have a $500 monthly cash flow? Dream big, but be realistic. Consciously or subconsciously, anyone who is going to evaluate your application is going to look at 3 major things. 1. Capacity - your financial ability to repay 2. Capital - proof that you have enough assets to cover the debt in case your cash flows fail you. This can be in form of Land, or other assets. 3. Character - though difficult to judge, financial institutions have different ways of gauging one's character. This can be exhibited by your credit history, attitude towards money (greed, attention to detail, spending habits). Remember, financial institutions are businesses and they won't lend without due care. Try your best to meet the requirements before submitting your application to any potential financier. #dreamitpossible