Yalu can find your farm or agricultural business the best available funding offer – at no charge to you.
We source funding offers from an extensive network of funders. Then we streamline the process, making it faster and easier to get the finance your farm or agricultural business needs.
Where we source funding for agricultural businesses
We rely on diversified sources of funding to ensure eligible farming operations and agri-businesses in South Africa have quick access to competitive funding deals.
We’ve partnered with finance providers including major and niche banks, private investors, Pollen BEE programmes, overseas loan assistance vehicles, and the Business Development Fund in SA and Namibia.
Overcoming constraints for farms and agricultural businesses
Although agriculture is a key contributor to South Africa’s GDP, farmers and agri-processing businesses are facing significant headwinds.
Export products are getting stuck at congested and poorly run ports. Issues with biosecurity have resulted in the simultaneous spread of livestock-related diseases. Infrastructure gaps along the value chain are hampering the delivery of quality products from farm to market.
All these avoidable shortcomings are exacerbating post-harvest losses and hiking up operational costs. Take low rainfall events, like the El Niño, into account, and farmers are forced to irrigate, raising the total spend on electricity to an estimated R8 billion a year.
Unlike many countries, South Africa does not subsidise the agricultural sector. Attracting investment and raising finance is a relentless challenge, especially for small-scale and emerging farmers.
It is only with sufficient funding that farmers and agricultural ventures can:
- modernise equipment
- adopt new technologies
- expand storage and/or cooling facilities
- meet seasonal labour and irrigation costs
- cover energy costs or invest in or expand solar capacity
- buy fuel, animal feed, seed, fertiliser and other inputs
- acquire more land.
Difficulty securing finance for agricultural ventures
Farmers and downstream agri-businesses face persistent struggles when seeking financial support.
Traditional funders only finance farming enterprises that have all their financials in order. Gathering the required paperwork is laborious and time-consuming. Even then, approvals can be delayed for six to 12 months, often without resolution.
Many emerging and small-scale farmers do not have the know-how to run a business. When it comes to record-keeping, succession planning and financial discipline, they fall short. That immediately excludes them from securing critical working capital.
Moreover, banks and other traditional finance providers typically offer secured loans backed by collateral – for example, a title deed or equipment. This can put assets at risk.
Government agri-funding initiatives are often limited to comparatively small sums. Also, they may be available only to specific applicants, such as black-owned enterprises, previously disadvantaged individuals or start-ups.
At Yalu, our funders don’t require security. The loan application process is paperless, and once approved, funding is typically available within days.
Eligibility for agricultural funding
If your farming or agricultural enterprise is a registered entity, has been operating for more than 12 months and has annual turnover of R1 million or more, we can help you get the agricultural funding you need to expand operations.
Yalu facilitates unsecured loans of up to R6 million. Applications are processed and approved quickly, and repayment terms are negotiable. Apply online now.
