Financing your business
Can you afford to start your business?
When starting a new business, many farmers need help with money. Start- up costs can be high and it takes time for your business to start making money.
If you do not have enough money to cover your business expenses, you may need to borrow money. We've listed a few tips to help you finance your agribusiness.
Are loans bad?
Our financial experts from Mercy Corps AFA explain that loans can be good or bad depending on the reasons why the loan is taken. If you take out a loan that you will use for investing in a project that will earn you money and which will grow in value, then that is considered a good loan.
For example, using a loan to invest in your farm will generate additional income for you and your family as you will have higher yields and better quality produce. Thus, you should not fear taking a loan for this purpose.
However, personal loans are generally considered bad loans as they do not generate any income, and you will need to repay the loan.