Access to sources of finance at the right time is a cornerstone for building better living conditions for farmers by ensuring the profitability of their business operations. Finance is required for various reasons in agriculture i.e. operating activities, purchase of different types of agricultural implements, machinery, high-quality seeds, storage and for making marketing arrangements. This document aims to provide information about the various programmes and products offered by financing institutions in South Africa. The information contained in this document outlines the funding criteria, the application process that needs to be followed, and the contact details of each financing institution. We trust that this will provide agricultural businesses with access to information, which will assist them to secure finance. N.B: Applicants need to ensure that all the required documents are submitted and need to take note that if all documentation is not submitted, the application will be disqualified.
General documentation required by financial institutions before processing a loan application
- Business plan • Organogram of management and staff
- Latest financial statements or, in the case of a sole proprietor, a written confirmation of earnings from an accountant
- Management accounts (required upfront should financial statements be older than six months)
- Projected balance sheets and income statements
- Cash flow projections with assumptions
- CC/Company/Trust agreement details (including Founding Statement, Memorandum and Articles of Association, Certificate of Incorporation, Certificate to Commence Business and Trust Deed (whichever applies)
- Personal bank statements (last three or six months depending on financier)
- Business bank statements (last three or six months depending on financier)
- Personal financial statements for members/directors/trustees
- Lease agreement if applicable
- Copies of contracts secured if any
- Share certificates
- Debtors and creditors age analysis
- CVs of business principals
- Copies of ID documents and marriage certificates
- Proof of physical address
- Full property description of fixed property together with a six-month bond statement
- Disclosure of any claims, attachments, etc. by other financial institutions
- Compliant tax status
To find information about the products/services from various financial institutions click on the following tabs.
- GOVERNMENT INSTITUTIONS
- DEVELOPMENT FINANCE INSTITUTIONS
- COMMERCIAL BANKS
- AGRICULTURAL COMPANIES
- DEVELOPMENT AGENCIES
The Production Economics Division of the Western Cape Department of Agriculture trusts that these “Sources of Finance for Agricultural Businesses” is of value to those involved in the Western Cape agricultural sector. Furthermore, the Western Cape Department of Agriculture believes that the information subsumed in this document will allow farmers to “shop around” for better and more cost-effective financing agreements.
We would like to express our gratitude to all the financing institutions contained in this document for permitting us to publish their institutional information.
© 2021 Western Cape Department of Agriculture
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Document written by Mfusi Mjonono, Mzwanele Lingani and Ziyanda Mtshiselwa
Layout and production by Mfusi Mjonono, Mzwanele Lingani and Ziyanda Mtshiselwa
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