What are poultry farm finance and funding?
Poultry farm finance (and/or funding) is the ‘receiving of credit’/’taking on of debt’ in any form, in order to start or run your poultry farm.
Finance offers the ability to afford an investment opportunity whilst not having the funds available.
It makes the borrower serve the lender in recouping the loaned amount, plus interest.
Understanding finance and funding
Finance and funding are attractive for one reason.
The saving of time.
An entrepreneur is confident about their idea.
They just don’t have the immediate financial means to acquire the stuff they need to get their idea off the ground.
They go pitching investors.
The hope is they’ll pursue some people who do have money to give them some of it to kickstart their idea (making it a reality).
Investors are willing to give their money to the entrepreneur, why?
Because unlike seed or a chicken – money can’t grow naturally, it can’t multiply unless it’s invested or traded to make more.
If left alone, money actually loses value.
This is because the cost of everything keeps going up.
So, investors are itching to put their money to good use for it to multiply.
And entrepreneurs are constantly coming up with more and more ways for investors to multiply their money.
The two literally go hand in hand.
Example
Best practice
Here is a list of typical finance and funding vehicles for starting a poultry farm.
- Loans
- Grants
- Subsidies
- Mortgages
If you ask me,
If an entrepreneur is so certain about their idea, they need to start small and slow and keep it all.
A little known fact among start-up business people,
Lending actually transfers ownership from the borrower to the lender.
Poultry farm loans are legally secured against assets. Meaning for as long as you are still owing funds, your farm operation actually belongs to your creditors.
Actual ownership is only transferred in full when you no longer have money owning.
Then the farm really is yours.
The more debt you take on the more fragmented the ownership of your farm.
The more legally binding arrangements that exist which could lead to the enforced breaking up of your business should you run into difficulty (insolvency).
Winds of change are certain in business.
When your time comes, would you want creditors having the final say as to whether or not your investment will survive or not?
Whether they exercise patience or not, the fact that they have legal powers to exercise the closing down of your poultry farm is cause for concern.
So, why have it that way?
Save yourself the potential calamity by starting slow and small – retaining ALL ownership rights to your business.
