For people working in the agricultural sector who need to buy any equipment, facilities, seeds, fertilizers, supplies in case of shortage of own funds may use the offer of one of the banks for lending to farmers sufficiently favorable terms.
To operate successfully, any farm should be certain resources, including financial, technical, technological and so on. On. But according to statistics one third of all farms operating in our mills, the needs far exceed the financial possibilities. Currently, bank loans can be a real salvation of such farms. After all, in order to receive a loan at the bank, the borrower does not require any supernatural documents, and in many cases - even in the form of collateral security.
In order to begin to engage in agribusiness, you need to have a certain starting base in the form of the fleet, equipment and financial capacity to buy some supplies for their activities. Generally, financial issues in this sector, as in others, are solved by bringing the resources of commercial banks.
The agricultural sector of the economy like no other in need of financial support on the part of commercial banks and the state. The features of this industry is seasonal revenue, the continuity of the production process, the dependence on external factors (weather conditions, for example).
The main problem is the lack of funds in the agricultural industry of today is practically solved, as most banks do not offer long-term loans to representatives of the sector due to the high level of risk associated with non-return of loan funds.
Due to the high risk, banks are trying to make out loans to farms with an interest rate relative to other corporate loans and additional collateral in the form of collateral or guarantees from third parties. The weighted average interest rate on agricultural loans in our country is 19 per annum.
Despite all the difficulties, the statistics say about the growth of the number of agricultural loans in the last period. So, last year they executed a third more than before last. This suggests a gradual increase in the level of confidence of banks in relation to agricultural producers.
Some banks have partner lending program of the agricultural sector, developed in conjunction with the distribution companies. Under such programs, customers are offered the available credit resources arising in connection with reaching agreement creditor supplier of goods.
Affiliate program, depending on the particular client can be performed at different conditions for different customers. Affiliate programs allow customers to take advantage of the following benefits:
- Lowering the interest rate on the loan;
- Maximum loan term to 5 years;
- A flexible season schedule of payment;
- Flexible contract terms, an individual approach to each client;
- Execution of credit secured by equipment, property, vehicles, etc.
It turns out that banks are still lending to the agricultural sector. And the information that the farmers are not lending, is not true. Banks are actively implementing various affiliate programs, develop new lending terms, so that customers have to choose from.