What the farmer does not know, he does eat: more than half of the farmers say they want to switch to more nature-friendly methods for their business. Because less nitrogen emissions, less protective equipment for crops and fewer greenhouse gases are examples of sustainability goals that must be achieved.
But despite the willingness of agricultural entrepreneurs to contribute to the transition, in reality little is changing. There is a problem: how are you going to pay for that?
Subsidies not enough
In the first instance you will look at the possibilities for subsidies. But despite the fact that the government offers various subsidies to support entrepreneurs, you receive no more than 70% of the necessary resources with most of them. As a result, you still need your own money to cover the other part of the investment.
In addition, the budget allocated by the government is often not sufficient to meet all subsidy applications, as a result of which many are rejected again. As an agricultural entrepreneur, you therefore do not receive sufficient financial support with only the capital from subsidies to really make the switch.
The bank does not dare
Then when you go to your bank to get capital for your plans, you quickly run into problems. Because investing in sustainability does not automatically lead to a higher turnover or profit, the bank usually sees more in scaling up than sustainable solutions.
Moreover, the systems are set up on the basis of fixed frameworks, which means that plans by innovative entrepreneurs often do not fit within the old rules. As a result, the bank needs a lot of time to think about it, or refuses the financing application because the risk is too great. Then you get stuck as an entrepreneur.
Alternative financing
As a result, more and more entrepreneurs are finding their way to alternative forms of financing to finance their plans. This is evident from the 2021 CBS Financing Monitor, which states that 34% of successful financing applications were made from non-bank lenders.
For example, you can leave your own equipment refinance and use the capital that is released to make your company more sustainable. But you can also easily apply for financing for equipment that runs on alternative fuels that are less harmful to the environment, such as electricity, hydrogen and biogas.
Future-proof entrepreneurship
With a good plan for the future, alternative (re)financing, possibly in combination with subsidies, can therefore offer a solution for your company.
Do you own your own equipment and would you like to look at the possibilities for a sale & lease back to free up capital? Or would you like to purchase equipment that runs on alternative fuels? Take a look at the lease calculator van Beequip or contact us without obligation on 010 340 08 44 or sales@beequip.nl