Farmers Funding & Advies is a specialist in realizing the most suitable financing solution. You will be completely unburdened and your company can continue to develop. We combine the different ways of borrowing money; at the bank and with private investors. These are often (former) fellow entrepreneurs. We call that Smart Money.
Together with the NLInvesteert investor platform, it is possible for an agricultural entrepreneur to register a financing need. It is also possible for investors to gain access to attractive cases. Its use is also increasing in agriculture. This sector therefore follows the national trend. In 2023 alley the use of non-bank loans by almost a third, to €5,1 billion.
Smart Money
As financial experts in the agricultural sector, the advisors at Farmers Funding & Advies see that applying for financing is becoming more challenging. We realize co-financing: banking and private financiers arrange it together. The bank cannot fully fulfill the financing request. Private financiers provide a solution.
Smart Money can, for example, be a solution for:
Farmer helps farmer
An example of this is a dairy farm in North Holland. This entrepreneur with 300 dairy cows was given the opportunity to expand the company with a 20 hectare leasehold. This fits perfectly within the picture of a land-based dairy farm. The bank also saw this, but they were still reluctant because of the challenging future for this sector. With the help of Farmers Funding & Advies and the accountant, six investors were found for five-year financing. These investors largely come from the sector itself. In this case, farmer helps farmer.
More practical examples of Smart Money? View on Farmers Funding and Advice (nlinvesteert.nl).
No 'free money'
Peter Pals, financial expert at FFA, warns that farmers must be realistic, even when it comes to this type of financing. It only suits well-run companies. There is no such thing as 'free money'.
We see that in the current market interest rates are around 5% or just above. For private investors this is around 7%. That seems like a lot at first glance, but it often concerns an interest-only loan. At the bottom line, the financing costs for the entrepreneur are approximately the same. For this, he will have a proven successful partner at his side who thinks about the future of the company and attaches great importance to it.
Would you like to know more about Smart Money as an agricultural entrepreneur or investor? Then look up www.farmersfunding.nl or contact one of our advisors.