Home > Updates > Tips for accessing capital in rural enterprises
Originally published in The Profit
Accessing capital in rural enterprises is often a pivotal moment for farmers and agribusiness owners. Whether it is for expansion, diversification, or succession planning, securing funding requires more than just a good idea – it demands preparation, clarity, and ownership of the process. After nearly two decades in rural banking, I’ve seen what works and what doesn’t. Here are some practical tips to help rural businesses improve their chances of success.
Before you even think about approaching a lender, take a hard look at your current business position. What are your strengths? Where are the weaknesses? What trends are emerging in your financials and operations? A clear understanding of your business reality builds credibility. Lenders want to see that you are not just optimistic – you are informed and realistic. This self-awareness is the foundation of any successful funding proposal.
A strong business strategy is essential. It should demonstrate not only where you are heading but also how you have executed in the past. Lenders are looking for evidence of capability – proof that you can deliver on your plans. Your strategy should include clear goals, timelines, financial forecasts, and risk management. Show that you have thought through the details and that your proposal is part of a broader, sustainable vision.
Farmers must take full ownership of the capital-raising process because, ultimately, it is their business and their future on the line. Too often, I have seen proposals fall short because the farmer relied on the bank to interpret the opportunity and make the case. That’s not the bank’s role. You need to be able to recognise and clearly explain the opportunity yourself. If articulating the proposal isn’t your strength, that’s okay – there are plenty of skilled advisors who can help you shape and communicate your vision. But the responsibility still rests with you. Lenders want to see that you are driving the process, not just participating passively. Ownership shows commitment, confidence, and leadership – all qualities that build trust and improve your chances of success.
You only get one chance to present your proposal. This is where many farmers fall short. A lack of preparation – missing financials, vague plans, or unclear objectives – can lead to a decline. And once a proposal is declined, it is incredibly difficult to turn the credit appetite around. Put in the time. Do your due diligence and be ready to answer any questions. It is more than just a budget. Refine your proposal. Treat it like the opportunity it is.
Final thoughts
Accessing capital is not just a financial transaction – it is a strategic milestone. It requires clarity, confidence, and commitment. By understanding your business, crafting a strong strategy, taking control of the process, and preparing thoroughly, you can turn a good idea into a compelling proposal. The stakes are high, but with the right approach, rural enterprises can unlock the funding they need to grow, adapt, and thrive.
With nearly 20 years’ experience in the agribusiness banking industry, and as owner of a Central Hawke’s Bay finishing farm himself, Dave is an expert in building robust practical business plans that provide for a sustainable future, and has extensive experience in helping clients achieve their goals and aspirations. Get in touch with Dave or a member of our agribusiness team today.
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