The seasonal nature of farming businesses means that sales are high during some seasons, but hit rock bottom in others. The businesses also have to incur a larger portion of their fixed costs during the preparatory period of the season when sales are usually at their lowest. Moreover, farmers also have to pay staff and suppliers, and invest in the maintenance of their implements.
CEDA recognises that short-term loans for seasonal businesses can play a large part in the success of such businesses, and through Ipelege loans farmers will be assited during such times.
|Eligiblity ||Botswana Citizens who are arable farmers, aged 18 and above. |
|Loan amount ||BWP500.00 to BWP500,000.00 |
|Eligible items to be financed || |
Seasonal arable expenses that include but not limited to the following: Equipment repairs, Seeds, Fertilizers, Fencing,Hiring of tractors etc.
|Percentage Financing ||Up to 100% of the cost of eligible items |
|Requirements || |
- At least 3 months bank statement (for existing agricultural businesses);
- Financial report including forecast income and expenditure statements (for existing agricultural businesses);
- Forecast income and expenditure: cashflow statement (for all businesses);
- Proof of ownership or lease of land for arable farming.
|Loan Period ||Period not exceeding 12 months |
|Interest rate ||5% per annum |
click here to down load application forms for Ipelege Loans