The business of agriculture is no doubt a profitable one with the ever increasing number of people who have to eat daily. This explains why demand for food items hardly reduces even when there is an increase in price, that is agricultural produce have an inelastic demand. Although, consumers might seek cheaper food substitutes to replace expensive ones in a bid to cut cost, taste preferences can be difficult to change overnight. However, the current inflation rate of about 19.64 (NBS), has lead to a sharp increase in the cost of farm inputs like feeds, production materials, electricity bill, transportation bill etc resulting in extremely high cost of production. The consumers on the other hand have declining purchasing power as salaries are still fixed and inflation keeps reducing the value of their money. Hence, Agribusiness owners find themselves in a situation where they cannot sell as high as they should due to the perishable nature of their goods and so have to settle for lower p
For business owner who plan on accessing loans either from the government or commercial banks, here are some of the essential requirement: 1. Registered Business Name: this implies that your business name must be registered by the Corporate Affairs Commission (CAC). This shows that your company is legally recognised and also has clearly defined scope of business. This is a major requirement for any kind of business loan including Agriculture loans 2. Corporate Accounts: having a bank account for your company that is different from your personal account can so it makes it easier for the bank giving the loan. As it becomes easier for them to track the cash flow the business. Although, there can be some exemption to this depending on the terms of the financial institution. But if you're planning on getting a sizeable amount of business loan either from the government or commercial banks in the nearest future it is advisable to open a corporate account for your busi