Part 7 of 8 · Part V
What Funders Assess, and the Documentation Pack
Whether the assessor sits in a provincial department, a development bank or a commercial credit committee, the same five questions are being answered. Answer them explicitly and early.
Part 7 of 888% through the guide
| Test | The question | What answers it |
|---|---|---|
| Viability | Does this farming operation make money at realistic yields and prices? | Monthly cash flow, yield history, current input costs, and a downside case that still services the facility |
| Land access | Do you have secure, documented rights for longer than the funding term? | Title deed, lease, PTO or CPA resolution, plus water use authorisation where irrigation is involved |
| Capability | Can you actually farm this, and does the operation survive without you? | Production history, qualifications or experience, a mentor or agronomist, a second person who can run the farm |
| Market | Who buys the output, at what price, and on what terms? | Signed offtake agreement, delivery records, buyer references, and a named alternative buyer |
| Contribution | What are you putting at risk? | Own funds, existing assets, livestock, equipment, retained earnings — typically 10% to 30% of project cost |
Section 5.1The documentation pack
Assemble this before approaching anyone. In South African agricultural funding, more applications stall on missing documents than on weak business cases.
| Category | What is required | Notes |
|---|---|---|
| Identity & entity | Identity documents of all principals; CIPC registration and company documents; CPA or trust deed and resolution where applicable; shareholding structure | Cooperatives and CPAs must show current registration and a valid resolution authorising the application |
| Compliance | SARS tax compliance status PIN; B-BBEE certificate or sworn affidavit; UIF and Compensation Fund registration where you employ staff | Tax compliance is the most common cause of delay. Start it first |
| Land | Title deed, lease agreement, permission to occupy or tribal authority letter; farm map with boundaries; proof of remaining lease term | Remaining term must generally exceed the funding period. Get the lessor’s consent to cede in writing |
| Water & environment | Water use authorisation or registration; borehole records; environmental authorisations where applicable | An unresolved water licence stops an irrigation application regardless of how strong the rest is |
| Financial | Three years of financial statements or reconstructed records; 12 months of bank statements; asset register; existing loan schedules | If you have no statements, produce a reconstructed set from bank records and sales books and label it honestly |
| Production | Yield and production records by season; livestock inventory and herd records; input usage; soil analyses | Production history is the closest thing a primary producer has to an audited account |
| Market | Offtake agreements or letters of intent; delivery notes and weighbridge slips; historical sales invoices | This section decides marginal applications more often than any other |
| The plan | Business plan; monthly financial model for 3–5 years; itemised use of funds with supplier quotations; risk register | The itemised quotation schedule is the fastest credibility gain available to you |
| Risk | Crop, asset and livestock insurance policies or quotations; succession arrangements | Insurance is a condition of most agricultural lending. Obtain the quote before you are asked |
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