But there is some basic information that a financier requires that is common to all applications. You’ll need to include the following in your business plan:
Purpose of application: Why are you asking for a loan? Do you want to buy land or equipment, or do you need working capital to fund operational costs?
Applicant details: Identify the applicant by name and identity (ID) number. If it’s a company or close corporation (CC), use the company/CC name and registration number, with a list of shareholders/members and their ID numbers.
Business location:
Say where the farm is. It’s also
advisable to provide the property title deed number and directions to the farm from the nearest town.
- Production plan: Describe the resource potential of the farm, the type of enterprise, the planned production output and the level of existing output achieved, if available.
- Marketing plan: Describe where and how the product will be sold and the prices that will be achieved.
- Management plan: Identify the organisation and management structure, supplying CVs of key personnel.
- Financial plan: Present an annual cash flow on a monthly basis, showing all the income and expenses. If possible, show an income statement and balance sheet, indicating the amount of own investment and the amount of finance required.
- Risk assessment: Identify the risks the business will face and the plans to reduce these risks. It’s a good idea to ask for the bank application form, as this will also indicate what information is needed.
Source: Duncan Pringle, head of Phatisa Agri Business South Africa. Call 031 765 2442, e-mail [email protected], or visit www.phatisa.com.
