A vast majority of businesses, at various points in their life cycle, require an injection of finance from an external source. Businesses need financing to buy new equipment, finance operating expenses such as salaries and marketing, offset a debt, or pay for specialised staff training, among other requirements. Despite most businesses requiring financing at one point or the other, it is surprising that most business owners, well aware of this fact, never plan early for this eventuality. As a result, most noted cases of businesses seeking financing are usually characterised with a heightened state of urgency, panic and desperation. In this state, most business owners end up settling for ‘quick deals’ that are usually harmful to their enterprises in the long run.
Those that are not so lucky may end up shutting down altogether. The sad reality is that this lack of planning has seen some enterprises with really huge growth potential shutting down, over small financing gaps.
A key reason for this level of unpreparedness can also be linked to the inability of business owners to properly forecast their financial needs. Properly run enterprises are able to analyse their cash flows and plan properly how to source for financing even a year or two before the need arises. This way, they are able to address it without disrupting their normal operations.
At Smart Farmer Financial Consulting, we come in to help businesses plan for and seek financing. When Edwin Alum, CEO of Mula Export an agribusiness that exports avocadoes and other horticultural crops to Europe needed to finance a huge order to Europe he approached us for assistance.
“Smart Farmer Financial Consulting was able to look at my business, assisted me in preparing my business plan and paired me with the right financier. I was able to secure the financing I needed in fourteen days and serviced my order in time and with little stress.” Alum said during an interview.
Smart Farmer Finance helps agribusinesses to properly position themselves for investment by working hand in hand with the owners and managers. The process involves understanding the needs of the business and establishing the right amount of investment required to help the business achieve its objectives.
We also assist business in determining the most suitable type of financing, depending on its cash flow generating ability. Some businesses are better off selling shares (equity finance) while others take up loans (debt finance) and yet others require a mix of both.
Ultimately, we develop business plans and cases, which we then present to the various investors within our database. We assist our clients in negotiating the best deals with various investors and help them choose the best deal for their agribusinesses. The entire process can take anything between two and 52 weeks depending on various factors such as the amount of investment sought, the quality of business records, and the complexity of the business, among other factors. There are different types of financing available to the agribusiness sector in Kenya and Smart Farmer Financial Consulting can help match you to the most suitable type for your business.
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