Online Reporter
Michael Tome
Business Reporter
FARMERS and young entrepreneurs must improve the bankability of their businesses by adopting sound financial management practices and maintaining transparent business records to improve funding opportunities for their enterprises.
National Building Society (NBS) bank relationship manager Mr Samuel Mapuranga said this at the Harare Institute of Technology (HIT) Technovation Expo Symposium in Harare on Tuesday.
She said financial institutions are increasingly assessing borrowers based on the quality of their financial records, governance structures and the ability of their businesses to generate predictable cash flows.
The symposium, held under the theme “Building Seamless Digital Supply Chains for Competitive Agribusiness Growth,” brought together stakeholders to discuss the role of technology in transforming Zimbabwe’s agricultural sector.
Mr Mapuranga said businesses with traceable cash flows and transparent financial reporting stand a better chance of securing credit.
He said banks also expect borrowers to present well-prepared projects supported by comprehensive feasibility studies, realistic business plans and clear repayment strategies.
“Bankability characteristics are the core financial, legal and operational traits that make a project or company attractive enough for banks to provide loans.
“Lenders look for predictable cash flows, sound financial stability, proven business models and healthy working capital,” said Mr Mapuranga.
He urged farmers to separate personal finances from business operations, saying the practice creates a clear financial footprint that enables banks to assess business performance accurately.
Adding that many farmers continue to rely heavily on cash transactions instead of using formal banking channels, making it difficult for financial institutions to verify their income and assess their creditworthiness.
“One of the ways of becoming a smart farmer is separating your personal financial account from your business account so that you maintain a good digital cash flow and footprint.
“There are farmers who have business accounts but are not fully utilising them. They continue accepting cash instead of processing transactions through the banking system. That destroys their financial record and affects the bank’s assessment of the business,” he said.
Mr Mapuranga said mixing personal and business expenditure also raises concerns among lenders.
