The acquisition of an equestrian property represents a substantial investment that requires careful financial planning. Whether you want to open an equestrian center, develop a breeding business or simply indulge your passion for horses, it's crucial to understand the different financing options available.
This article will guide you through the key steps to financing your equestrian project and making your dream come true in the horse world.
Before embarking on the search for financing, it's essential to accurately estimate the amount needed to purchase and set up your equestrian property.
A detailed business plan is essential to convince potential investors or lenders. It must include :
Banks offer specific loans for the acquisition of equestrian properties. Rates and conditions vary according to the borrower's profile and the soundness of the project.
Many regions offer financial aid to support the development of the equine industry. Ask your chamber of agriculture or regional council for details of existing schemes.
As equestrian projects are agricultural in nature, apart from the boarding activity, you can also apply for installation aid for farmers.
There are financing solutions to complement traditional bank financing. Crowdfunding can be an interesting option to complete your financing, particularly for innovative or high value-added projects in the equestrian world. You can also use land portage solutions to defer the purchase of agricultural land.
Some enthusiasts or industry professionals may be interested in taking a stake in your equestrian project.
There are investment funds dedicated to the equine industry, capable of supporting large-scale projects in the sector.
A substantial personal contribution (at least 20% to 30% of the total amount) will enhance the credibility of your application with lenders.
Don't hesitate to mix different options to reach the required amount: bank loan, subsidies, private investors, etc.
Add a margin of 10-15% to the initial budget to allow for the unexpected, which is often the case with this type of project.
Of course, your business case must be profitable, with consistent income and expenses.
The profile and experience of the project owner are crucial elements in the assessment of a financing application for an equestrian property. Beyond the project itself, funders will look closely at your qualifications and your background in the equestrian world.
Be sure to highlight your diplomas, professional certificates or galops obtained, which are essential for certain equestrian activities.
Your practical experience is just as important: detail your years as a riding instructor, your dressage skills, or your experience at a stud farm.
Whether your interviewer is a horse expert or not, he or she should be able to clearly perceive your passion, expertise and legitimacy in the equestrian sector. These elements will considerably strengthen the credibility of your project and increase your chances of obtaining the necessary financing.
Emphasize the innovative or differentiating aspects of your equestrian project compared to the local competition.
Highlight the development potential of leisure riding and the growing appeal of equestrian activities. A detailed analysis of the competition from other companies and the specific needs of your geographical area will be necessary.
Detail your horse selection and marketing strategy, highlighting the market demand for certain types of horse.
Demonstrate the profitability of this activity in suburban areas, where demand is often strong from horse owners.
The upkeep of an equestrian property and its horses is a major expense that should not be underestimated in your financial plan.
Consider additional sources of income: organization of equestrian events, equestrian tourism, professional training, etc.
Take out appropriate insurance cover to protect your investment against risks specific to the equestrian sector.
Financing an equestrian property requires careful preparation and a good understanding of the industry. By combining a solid business plan, in-depth research into available financing options and rigorous financial management, you'll significantly increase your chances of bringing your equestrian project to fruition. Don't forget that a passion for horses must be accompanied by a realistic entrepreneurial approach to ensure the long-term future of your business in the equestrian world.
