SMALLHOLDERS FARMERS FINANCING : CHALLENGES & OPPORTUNITIES

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "SMALLHOLDERS FARMERS FINANCING : CHALLENGES & OPPORTUNITIES"

Transcription

1 SMALLHOLDERS FARMERS FINANCING : CHALLENGES & OPPORTUNITIES Presented By: FINBANK BURUNDI Page 1

2 Outline Burundi Coffee Sector: Key Fact Sheet Coffee Value Chain From the seed to the cup Bank Coffee Value Chain: Current financing structure Coffee Value Chain: Current financing needs Smallholder Financing: Opportunities Smallholder Financing: Challenges Smallholder Financing: Value proposition Recommendations Page 2

3 Burundi Coffee Sector Coffee is one of the most important cash crops in Burundi, providing more than 86% of export earnings, making up 11% of GDP (Gross Domestic Product) and bringing revenue to approximately 590,000 small farmers. The coffee industry is a strategic sector in Burundi; Coffee is one of the key pillars of Burundi s exports and supports approximately 600,000 households, or about 4 million rural Burundians; The coffee production is dominated by smallholder production, which generally occurs on plots of less than 2 hectares and is characterized by low yields, poor linkages and little or no access to finance. Page 3

4 Burundi Coffee Sector Key Factsheet The total coffee production varies between 10,000 and 25,000 MT per annum. This is against a potential production of 35MT per annum. The total land area covered by Coffee plantations is estimated at 45,000 hectares which is roughly 1.6% of Burundi s total land area. The total number of Coffee trees is estimated to be 120 Million trees with an average of 2,666 trees per hectare. All the cultivated area is dominated by individual low yield, resource poor smallholder farmers with an average yield rate ranging from Kg/ Tree, against a global standard average yield of 2.2 kg/tree. Burundi s coffee sector fertilizer annual provision is around 1,000 MT of fertilizer per campaign against a fertilizer requirement of 12,000 MT per campaign. Page 4

5 Burundi Coffee Sector Key Factsheet Cont d Key Conversion Rates: 5/1 from cherries to Green Coffee 78% Conversion from fully washed to Green Coffee 76% from washed parchment to Green Coffee There are around 190 Washing Stations: 98 are owned by farmers cooperatives and private companies. 92 still under state ownership and managed by SOGESTAL. The Government has discontinued fixing producer prices and guaranteeing coffee financing. Although Burundian coffee s global market share is small; below 1%, the quality of coffee is highly rated and highly demanded by Roasters. Page 5

6 Coffee Value Chain From the seed to the cup Producers ACF.; FA; CENAC Murima w Isangi CG) Washing Stations Growers Cooperatives; BUCAFE; WEBCOR Milling Stations SODECO; BUCAFE; BUDECA;COFICO; CBC; WEBCOR; CIVCA INTERCAFE ARFIC Exporters COCOCA ( Confederation of Coffee Cooperatives) ABEC ( Association of Coffee Exporters) Page 6

7 Coffee value chain: Current Financing Structure Supplier credit from coffee farmers to washing stations owners; Social financing and microfinance remain the main source of funding for smallholder producers; Commercial Banks provides targeted financing to coffee exporters but the lower chain is still considered less attractive to commercial banks due to long turnover periods and the inherent high credit risk associated to that segment. Page 7

8 Coffee Value Chain Current Financial needs Financial Needs Producers ACF.; FA; CENAC Murima w Isangi CG Cherry Advance Loans Washing Stations Growers Cooperatives; BUCAFE; WEBCOR Working Capital Asset Finance Milling Stations SODECO; BUCAFE; BUDECA;COFICO; CBC; WEBCOR; CIVCA No financial need at this stage Exporters COCOCA ( Confederation of Coffee Cooperatives) ABEC ( Association of Coffee Exporters) Invoice Discount Facility Page 8

9 Coffee Value Chain : Current Financial Needs Cont d Different Value chain segments require different types of financing: Smallholder farmers require some bridge finance to cover the gap between harvest and payment from Washing Stations owners; Washing Stations are the most in need of external finance as: Working Capital for the purchase of cherries; Asset Finance for the acquisition or upgrade of equipment. Exporters need Invoice Discount Facilities while they wait for payment from offshore buyers; The sub-sector of producers and washing stations is in need of approximately US $ 20 Million to meet its credit demand. Page 9

10 Smallholder Financing : opportunities Smallholder farmers present clear opportunities for lenders, especially those that have constituted into cooperatives and those that own washing stations; Access to finance would result in improved cash flow for financials institutions following the increase in coffee production and quality; Affordability of inputs to enhance the soil productivity resulting in better yields; Improved processing methods through better equipments. Page 10

11 Smallholders Financing: challenges Low repayment capacity due to low and unpredictable production Inadequacy of collateral to funding requirements: The inability to pledge land as collateral due to the lack of registered property rights. Counterparty Risk: Lack of certainty regarding counterparty performance Dispersed and remote location of farmers. Governance issues among associations or cooperatives Long operating cycle: cherry picking starts in March while exportations start in August. Page 11

12 Smallholders Financing: Value Proposition Sub-Sector Facility Type Recommended Intervention Security/Collateral Farmers BridgeFinance/Term Loan Develop partnerships with social lenders and Microfinance. Facilitate the outreach of MFI and financial cooperatives to enlarge their area of coverage Land Produce Washing Stations Working Capital for the purchase of cherries Asset Finance Commercial Banks to provide finance Buyer Credit Pledge of Assets Inventory Finance Warehouse Receipt System ( WRS) Milling Stations No financial needs Exporters Invoice Discount Facility Commercial Banks Property Mortgage Lien on Stock The provision of lending through the COCOCA (Consortium of Coffee Growers Coperatives) seems the less riskier for Lenders Page 12

13 Recommendations Smallholder farmers to continue to constitute themselves into cooperatives in order to secure funding; The Government to encourage the registration of property rights so that land can be pledged as security for borrowings. Insurance Companies to develop crop insurance products, which should be an additional security for smallholders borrowings. The Government to promote the development of Cooperative Finances; Provision of lending by Financial Institutions under the following securities: Inventory under collateral management agreement; Warehouse Receipt Systems. The Government to regulate Warehouse Receipt Agency, that can be custodians of collateralized stocks; Page 13

14 Thank You Page 14

SCALING UP AGRICULTURAL FINANCE

SCALING UP AGRICULTURAL FINANCE SCALING UP AGRICULTURAL FINANCE Can Small Scale farmers be financed on commercial basis by a Financial Institution? The Case of KCB BANK RWANDA LTD Presentation profile 1. Rwanda s Agricultural scene 2.

More information

RURAL AND AGRICULTURE FINANCE Prof. Puneetha Palakurthi School of Community Economic Development Sothern New Hampshire University

RURAL AND AGRICULTURE FINANCE Prof. Puneetha Palakurthi School of Community Economic Development Sothern New Hampshire University RURAL AND AGRICULTURE FINANCE Prof. Puneetha Palakurthi School of Community Economic Development Sothern New Hampshire University DRIVERS OF RURAL DEVELOPMENT High overall economic growth Effective land

More information

ACCESS TO FINANCE FOR AGRICULTURAL ENTERPRISES. Presented by Farouk Kurawa Agricultural Finance Specialist, USAID MARKETS II

ACCESS TO FINANCE FOR AGRICULTURAL ENTERPRISES. Presented by Farouk Kurawa Agricultural Finance Specialist, USAID MARKETS II ACCESS TO FINANCE FOR AGRICULTURAL ENTERPRISES Presented by Farouk Kurawa Agricultural Finance Specialist, USAID MARKETS II AGRICULTURE IN NIGERIA It is a wide spread activity practiced across all regions

More information

Strategic & Practical Value-Chain

Strategic & Practical Value-Chain Strategic & Practical Value-Chain Financing Project Approach Thailand Case Reuben Jessop ICON Institute GmbH, Private Sector GTZ Thailand 12 November 2008 Page 1 Pro-Poor Sector Choice Based on Largest

More information

IFC and Agri-Finance. Creating Opportunity Where It s Needed Most

IFC and Agri-Finance. Creating Opportunity Where It s Needed Most IFC and Creating Opportunity Where It s Needed Most Agriculture remains an important activity in emerging markets IMPORTANCE OF AGRICULTURE as major source of livelihood 75% of poor people in developing

More information

Seventh Multi-year Expert Meeting on Commodities and Development 15-16 April 2015 Geneva

Seventh Multi-year Expert Meeting on Commodities and Development 15-16 April 2015 Geneva Seventh Multi-year Expert Meeting on Commodities and Development 15-16 April 2015 Geneva Improving Smallholder Farmers Access to Finance in SSA: Challenges and Opportunities By Matieyedou Konlambigue Program

More information

Using the Value Chain in Financing Agriculture

Using the Value Chain in Financing Agriculture Using the Value Chain in Financing Agriculture Rural and Agricultural Finance Conference Marrakech, Morocco Calvin Miller FAO Agribusiness and Finance Senior Officer Rome, Italy Presentation Applying Agri

More information

Transforming Rwanda s Coffee Sector

Transforming Rwanda s Coffee Sector Transforming Rwanda s Coffee Sector Partnership to Enhance Agriculture in Rwanda through Linkages (PEARL) Dan Clay Institute of International Agriculture Michigan State University 1 Three Take-aways First,

More information

IFC S INVOLVEMENT IN COFFEE A PRESENTATION TO THE ICO LONDON, SEPTEMBER 2014

IFC S INVOLVEMENT IN COFFEE A PRESENTATION TO THE ICO LONDON, SEPTEMBER 2014 IFC S INVOLVEMENT IN COFFEE A PRESENTATION TO THE ICO LONDON, SEPTEMBER 2014 1 IFC CREATES OPPORTUNITY AND IMPROVES LIVES BY PROMOTING PRIVATE SECTOR DEVELOPMENT IN EMERGING MARKETS IFC: established in

More information

Financing the Agri value chain -knowledge is key

Financing the Agri value chain -knowledge is key Financing the Agri value chain -knowledge is key March 15, 2007 Agri Revolution 2007 Mr. Arindom Datta Director, Strategic Advisory Rabo India Finance Pvt. Ltd. RABOBANK: Global Financial Powerhouse Focused

More information

Financing Smallholder Farmers. to Increase Incomes and Transform Lives in Rural Communities

Financing Smallholder Farmers. to Increase Incomes and Transform Lives in Rural Communities Financing Smallholder Farmers to Increase Incomes and Transform Lives in Rural Communities EXECUTIVE SUMMARY Africa is home to a quarter of the world s farmland, yet it generates only 10 percent of all

More information

FMB. Financing Agricultural Forum 2012. (March 28 th 30 th 2012) Kampala - Uganda

FMB. Financing Agricultural Forum 2012. (March 28 th 30 th 2012) Kampala - Uganda FMB Financing Agricultural Forum 2012 (March 28 th 30 th 2012) Kampala - Uganda Contents 1. About FMB 2. Evolution of FMB 3. Product Overview & Characteristics 4. Critical Success Factors 5. Challenges

More information

Agricultural finance for smallholder farmers: Rethinking traditional microfinance risk and cost management approaches

Agricultural finance for smallholder farmers: Rethinking traditional microfinance risk and cost management approaches Agricultural finance for smallholder farmers: Rethinking traditional microfinance risk and cost management approaches With evidence from Uganda, Kenya, Benin and Cameroon Daniela Röttger Luxembourg, 13

More information

CHAPTER 16 Current Asset Management and Financing

CHAPTER 16 Current Asset Management and Financing Copyright 2008 by the Foundation of the American College of Healthcare Executives 6/13/07 Version 16-1 CHAPTER 16 Current Asset Management and Financing Investment and financing policies Cash and marketable

More information

THE INITIATIVE FOR SMALLHOLDER FINANCE BRIEFING CASE STUDY: THE RETURN ON INVESTMENT FROM TECHNOSERVE S COFFEE INITIATIVE.

THE INITIATIVE FOR SMALLHOLDER FINANCE BRIEFING CASE STUDY: THE RETURN ON INVESTMENT FROM TECHNOSERVE S COFFEE INITIATIVE. BRIEFING 09 CASE STUDY: THE RETURN ON INVESTMENT FROM TECHNOSERVE S COFFEE INITIATIVE February 3, 2015 CASE STUDY: THE RETURN ON INVESTMENT FROM TECHNOSERVE S COFFEE INITIATIVE In November 2007, TechnoServe

More information

Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India

Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India Role of Government in Agriculture Risk Mitigation & Expansion of Insurance in India Kolli N Rao 4 th October 2015 0 OVERVIEW India: The Agriculture Setting India: Agriculture Insurance Architecture Agriculture

More information

Flexible Repayment at One Acre Fund

Flexible Repayment at One Acre Fund Executive Summary To meet client needs cost- effectively, on a large scale, and in difficult operating environments, microfinance institutions (MFIs) have relied on simple and standardized loan products.

More information

THE LOAN RENEWAL SEASON: YOUR LENDER S CONCERNS. Michael Boehlje Department of Agricultural Economics Purdue University

THE LOAN RENEWAL SEASON: YOUR LENDER S CONCERNS. Michael Boehlje Department of Agricultural Economics Purdue University THE LOAN RENEWAL SEASON: YOUR LENDER S CONCERNS Michael Boehlje Department of Agricultural Economics Purdue University Now that harvest is over, farmers are planning for next year s planting season. Lining

More information

China Trade & Export Finance Conference Commodity Finance in PRC

China Trade & Export Finance Conference Commodity Finance in PRC China Trade & Export Finance Conference Commodity Finance in PRC JOLYON ELLWOOD-RUSSELL Jolyon Ellwood Russell, Partner James Willcock, Registered Foreign Lawyer Gulong Ren, Legal Officer Agenda Commodity

More information

Chapter Sources of Short-Term Financing

Chapter Sources of Short-Term Financing Chapter Sources of Short-Term Financing Chapter 8 - Outline PPT 8-2 Sources of Short-Term Financing Trade Credit from Suppliers Net Credit Position Chartered Banks in Canada Types of Short-term Loans Interest

More information

LOAN ANALYSIS. 1 This is drawn from the FAO-GTZ Aglend Toolkits 1 5 for the training purpose.

LOAN ANALYSIS. 1 This is drawn from the FAO-GTZ Aglend Toolkits 1 5 for the training purpose. LOAN ANALYSIS AGLEND1 is a financial institution that was founded in the early nineties as a microcredit NGO. In the beginning, its target clientele were micro- and small entrepreneurs in the urban area.

More information

CHAPTER 17 Short-Term Financing

CHAPTER 17 Short-Term Financing 17-1 17-2 CHAPTER 17 Short-Term Financing Working capital financing policies Accounts payable (trade credit) Commercial paper Short-term bank loans Secured short-term credit Working Capital Financing Policies

More information

Supply Chain Financing Model: Based on China s Agricultural Products Supply Chain Tingrui Wang 1, 2, a, Qinggao Lan 1, b, *, Yongze Chu 2, c

Supply Chain Financing Model: Based on China s Agricultural Products Supply Chain Tingrui Wang 1, 2, a, Qinggao Lan 1, b, *, Yongze Chu 2, c Supply Chain Financing Model: Based on China s Agricultural Products Supply Chain Tingrui Wang 1, 2, a, Qinggao Lan 1, b, *, Yongze Chu 2, c 1 College of Economics and Management, Shenyang Agricultural

More information

Portfolio Risk Management. Module 8

Portfolio Risk Management. Module 8 Portfolio Risk Management Module 8 Rural Finance Module 8 Agenda Block 1 Introduction Risk analysis of agriculture and rural loan portfolio: the art of risk analysis Type of risks Portfolio risk management

More information

FARM LEGAL SERIES June 2015 Security Interests in Personal Property

FARM LEGAL SERIES June 2015 Security Interests in Personal Property Agricultural Business Management FARM LEGAL SERIES June 2015 Security Interests in Personal Property Phillip L. Kunkel, Jeffrey A. Peterson, Jason Thibodeaux Attorneys, Gray Plant Mooty INTRODUCTION The

More information

Incisive Business Guide to Factoring

Incisive Business Guide to Factoring Incisive Guide to Factoring Factoring Guide Summary This guide from Incisive outlines the features and benefits for your business from using factoring and invoice discounting services. Factoring is commonly

More information

NOTE ON LOAN CAPITAL MARKETS

NOTE ON LOAN CAPITAL MARKETS The structure and use of loan products Most businesses use one or more loan products. A company may have a syndicated loan, backstop, line of credit, standby letter of credit, bridge loan, mortgage, or

More information

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance

Agriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance Agriculture (Ag) Trade Finance Agriculture / Commodity Trade Finance Table of Contents Select U.S. Ag Export Statistics Need For Ag Trade Finance Overview of Ag Trade Finance Solutions Ag Trade Finance

More information

Working capital: Keep the ball rolling

Working capital: Keep the ball rolling Working capital: Keep the ball rolling Author : Michael Byrne Date : March 9, 2011 Working capital is considered the life line of any company, allowing the company to grow, expand operations, and weather

More information

Developing Kenya s Mortgage Market

Developing Kenya s Mortgage Market Developing Kenya s Mortgage Market Simon Walley Senior Housing Finance Specialist World Bank 17 February, 2011 - Nairobi Outline Rationale for developing the mortgage market Mortgage Market Summary Housing

More information

Leveraging SMS Technology to Create Transparency and Growth in Coffee Value Chains

Leveraging SMS Technology to Create Transparency and Growth in Coffee Value Chains Leveraging SMS Technology to Create Transparency and Growth in Coffee Value Chains JANUARY 14, 2014 Understanding the problem Business Solutions to Poverty TechnoServe 2 Imagine a farmer-owned coffee wet

More information

Promoting pro-poor growth in Rwandan agriculture: What are the policy options?

Promoting pro-poor growth in Rwandan agriculture: What are the policy options? Promoting pro-poor growth in Rwandan agriculture: What are the policy options? Michael Morris, Liz Drake, Kene Ezemenari, Xinshen Diao Analytical Approaches to Inclusive Growth PREM Learning Week 22 April

More information

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS

SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS SMALL BUSINESS LENDING OPPORTUNITIES FOR CREDIT UNIONS February 14, 2012 Terrence K. McHugh President Commercial Alliance 1 Business Lending in Credit Unions 1998 regulation limits business lending in

More information

Xynergy Commercial Capital LLC

Xynergy Commercial Capital LLC Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay

More information

Chapter 22. Web Extension: Secured Short-Term Financing. Accounts Receivable Financing

Chapter 22. Web Extension: Secured Short-Term Financing. Accounts Receivable Financing Chapter 22 Web Extension: Secured Short-Term Financing T his extension discusses procedures for using accounts receivable and inventories as security for short-term loans. As noted earlier in the chapter,

More information

Credit Lectures 26 and 27

Credit Lectures 26 and 27 Lectures 26 and 27 24 and 29 April 2014 Operation of the Market may not function smoothly 1. Costly/impossible to monitor exactly what s done with loan. Consumption? Production? Risky investment? Involuntary

More information

Value Chain Finance Concepts, O pportun ties & Ch a enges

Value Chain Finance Concepts, O pportun ties & Ch a enges Value Chain Finance Concepts, Opportunities i & Challenges Christophe Cordonnier, Yerevan, June 19 Agenda Introduction of Trainers & Topic Value Chain Finance: Concepts, Opportunities & Challenges International

More information

Transforming and Improving livelihoods through Market Development and Smallholder Commercialization in Sub- Saharan Africa

Transforming and Improving livelihoods through Market Development and Smallholder Commercialization in Sub- Saharan Africa Transforming and Improving livelihoods through Market Development and Smallholder Commercialization in Sub- Saharan Africa Janet Wanjiru Magoiya Mission To build Pro-poor market development initiatives

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

YOUR GUIDE TO BUSINESS FINANCE

YOUR GUIDE TO BUSINESS FINANCE YOUR GUIDE TO BUSINESS FINANCE GIBSON HEWITT MAKES BUSINESS FINANCE EASY We put you at an advantage. Gibson Hewitt has knowledge of a wide range of business finance options from business lenders across

More information

Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for

Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for 1 2 3 Research verification coordinators collaborate with Arkansas Division of Agriculture crop specialists to determine a typical production method for application in the crop enterprise budgets. 4 Whole

More information

LAUNCHING A SUCCESSFUL COMMODITY EXCHANGE IN TANZANIA. Godfrey Malekano, Director Market Supervision & Market Development-CMSA

LAUNCHING A SUCCESSFUL COMMODITY EXCHANGE IN TANZANIA. Godfrey Malekano, Director Market Supervision & Market Development-CMSA LAUNCHING A SUCCESSFUL COMMODITY EXCHANGE IN TANZANIA Godfrey Malekano, Director Market Supervision & Market Development-CMSA The Role of Agriculture Agriculture is the backbone of the Tanzanian economy

More information

APPENDIX Business Description Current Position of Company Financing Request

APPENDIX Business Description Current Position of Company Financing Request APPENDIX SAMPLE BUSINESS PLAN Introduction Business Description A brief description of your business; product type, industry and target market and competitive position as compared to your rivals Current

More information

Missouri Soybean Economic Impact Report

Missouri Soybean Economic Impact Report Missouri Soybean Economic Report State Analysis March 2014 The following soybean economic impact values were estimated by Value Ag, LLC, as part of a Missouri Soybean Merchandising Council funded project.

More information

Apple Capital Group, Inc.

Apple Capital Group, Inc. COMMERCIAL FINANCE Commercial finance typical revolves around what are considered the assets of your business and are often called "asset based loans". The assets of your business are things such as your

More information

2. The proposal has been sent to the Virtual Screening Committee (VSC) for evaluation and will be examined by the Executive Board in September 2008.

2. The proposal has been sent to the Virtual Screening Committee (VSC) for evaluation and will be examined by the Executive Board in September 2008. WP Board 1055/08 International Coffee Organization Organización Internacional del Café Organização Internacional do Café Organisation Internationale du Café 26 August 2008 Original: English Project/ Common

More information

ACCOUNT DEBIT CREDIT Accounts receivable 10,000 Sales 10,000 To record the sale of merchandise to Sophie Company

ACCOUNT DEBIT CREDIT Accounts receivable 10,000 Sales 10,000 To record the sale of merchandise to Sophie Company CURRENT RECEIVABLES Receivables are the amount owed to the organization by its customers and/or others. Current receivables will be collected within one year or the current operating cycle which ever is

More information

Closing Yield Gaps. Or Why are there yield gaps anyway?

Closing Yield Gaps. Or Why are there yield gaps anyway? Closing Yield Gaps Or Why are there yield gaps anyway? Closing Yield Gaps: Large potential to increasing food production Major cereals: attainable yield achieved (%) 0% 10% 20% 30% 40% 50% 60% 70% 80%

More information

Chapter16. Managing Short-Term Liabilities (Financing)

Chapter16. Managing Short-Term Liabilities (Financing) Chapter16 Managing Short-Term Liabilities (Financing) 1 Learning Outcomes Chapter 16 Describe the characteristics of the various sources of short-term credit, including Accruals trade credit bank loans

More information

PROGRAM SUMMARY. For additional information, contact: Patrick Evans (618) 244-2424 ext. 1501 pevans@il-fa.com LOAN NUMBER

PROGRAM SUMMARY. For additional information, contact: Patrick Evans (618) 244-2424 ext. 1501 pevans@il-fa.com LOAN NUMBER PROGRAM SUMMARY Contact: For additional information, contact: Patrick Evans (618) 244-2424 ext. 1501 pevans@il-fa.com LOAN NUMBER Lorrie Karcher (618) 244-2424 ext. 1500 lkarcher@il-fa.com An application

More information

Recent Developments in Small Business Finance

Recent Developments in Small Business Finance April 1 Recent Developments in Small Business Finance Introduction In 1, a Small Business Panel was formed by the Reserve Bank to advise it on the availability of finance to small business. At about the

More information

ROSEAU EDA REVOLVING LOAN FUND LENDING GUIDELINES (CITY/USDA FUNDS)

ROSEAU EDA REVOLVING LOAN FUND LENDING GUIDELINES (CITY/USDA FUNDS) ROSEAU EDA REVOLVING LOAN FUND LENDING GUIDELINES (CITY/USDA FUNDS) Background I. Eligible Borrowers A. Existing and potential start-up businesses, located in the city limits of Roseau, who can demonstrate

More information

Micro Crop Insurance and Protecting the Poor Lessons From the Field

Micro Crop Insurance and Protecting the Poor Lessons From the Field Micro Crop Insurance and Protecting the Poor Lessons From the Field Aaron Oxley CTO, Micro Insurance Agency aaron.oxley@microinsuranceagency.com The Program Who are we an what do we do? Who are the poor?

More information

Dr.-Ing. Ngoc Luan Nguyen, Technical consultant, SDCC Ltd., Vietnam

Dr.-Ing. Ngoc Luan Nguyen, Technical consultant, SDCC Ltd., Vietnam Dr.-Ing. Ngoc Luan Nguyen, Technical consultant, SDCC Ltd., Vietnam Dr.-Ing. Ngoc Luan Nguyen is technical consultant for an independent company, SDCC Ltd. He has been involving mainly in the areas of

More information

Mitigation of Investment Risk

Mitigation of Investment Risk 1of 37 F A O P o l i c y L e a r n i n g P r o g r a m m e Module 3: Investment and Resource Mobilization Mitigation of Investment Risk 2of 38 Mitigation of Investment Risk By Calvin Miller, Senior Officer,

More information

Concept Note on Farm Income Insurance: Issues and Way Forward

Concept Note on Farm Income Insurance: Issues and Way Forward Farm Income Insurance India, an agrarian economy with 1/3 rd population depending on the agriculture sector directly or indirectly has ~ 116 million farm holdings covering an area of 163 million hectares

More information

Rural and Agricultural Finance. Day 1: Block 1 What and Why of Rural Finance?

Rural and Agricultural Finance. Day 1: Block 1 What and Why of Rural Finance? Rural and Agricultural Finance Day 1: Block 1 What and Why of Rural Finance? Self Introduction 7 Questions 1. Name, institution, and current job title. 2. What activity are you working on now that is related

More information

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT CHAPTER 9: BANKING 9.1: THE U.S. BANKING SYSTEM Unlike banks in many countries, U.S. banks are not government-owned and managed. They provide deposit facilities for the general public, provide loans for

More information

SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT 1 Sector Road Map 1. Sector Performance, Problems, and Opportunities

SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT 1 Sector Road Map 1. Sector Performance, Problems, and Opportunities Small Business and Entrepreneurship Development Project (RRP UZB 42007-014) SECTOR ASSESSMENT (SUMMARY): MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT 1 Sector Road Map 1. Sector Performance, Problems,

More information

16A SECURED SHORT-TERM FINANCING ACCOUNTS R ECEIVABLE F INANCING. Procedure for Pledging Accounts Receivable

16A SECURED SHORT-TERM FINANCING ACCOUNTS R ECEIVABLE F INANCING. Procedure for Pledging Accounts Receivable App16A_SW_Brigham_778312 1/21/03 8:16 PM Page 16A-1 16A SECURED SHORT-TERM FINANCING This appendix discusses procedures for using accounts receivable and inventories as security for short-term loans. As

More information

Post Conflict Agricultural Development in Ethiopia: General Overview. Jemal Yousuf, Haramaya University, Ethiopia

Post Conflict Agricultural Development in Ethiopia: General Overview. Jemal Yousuf, Haramaya University, Ethiopia Post Conflict Agricultural Development in Ethiopia: General Overview Jemal Yousuf, Haramaya University, Ethiopia Context of conflict Ethiopia was engulfed with conflict all through the 1980s The conflict

More information

Helping New Ag Producers Grow

Helping New Ag Producers Grow Helping New Ag Producers Grow Objectives Who is Northwest Farm Credit Services? What services do we provide? How are loan decision made? What are some obstacles our applicants face? Who is Northwest FCS?

More information

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst

OLR RESEARCH REPORT ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS. By: Michelle Kirby, Associate Analyst OLR RESEARCH REPORT February 19, 2013 2013-R-0054 ANALYSIS OF STATE SMALL BUSINESS LOAN GUARANTEE PROGRAMS By: Michelle Kirby, Associate Analyst You asked for an analysis of state small business loan guarantee

More information

EASYPol Module 148. DrumNet An Enterprising Third Party Transaction Manager

EASYPol Module 148. DrumNet An Enterprising Third Party Transaction Manager EASYPol Module 148 DrumNet An Enterprising Third Party Transaction Manager DrumNet An Enterprising Third Party Transaction Manager by Ron Kopicki, World Bank Investment Officer, Washington DC, USA and

More information

The challenge of financing Africa s food trade. Dr Edward George Head of Soft Commodities Research, Ecobank 4 June 2014, Geneva

The challenge of financing Africa s food trade. Dr Edward George Head of Soft Commodities Research, Ecobank 4 June 2014, Geneva The challenge of financing Africa s food trade Dr Edward George Head of Soft Commodities Research, Ecobank 4 June 2014, Geneva Section 1 Drivers of Africa s food demand Sub-Saharan Africa is heavily dependent

More information

Structured Trade Finance - Introduction. Presented by Gabriel Kivuti, WBI / ATI Consultant gabrielkivuti@yahoo.com

Structured Trade Finance - Introduction. Presented by Gabriel Kivuti, WBI / ATI Consultant gabrielkivuti@yahoo.com Structured Trade Finance - Introduction Presented by Gabriel Kivuti, WBI / ATI Consultant gabrielkivuti@yahoo.com Agenda 1. 1. Structured Trade Finance an an Introduction 2. 2. Key issues in in Structured

More information

PRESENTATION ON GHANA S NATIONAL COCOA PLAN

PRESENTATION ON GHANA S NATIONAL COCOA PLAN PRESENTATION ON GHANA S NATIONAL COCOA PLAN 23 RD SEPTEMBER 2013 GHANA COCOA BOARD Outline of Presentation Background Processes and procedures used in the formulation Objectives of Ghana s National Cocoa

More information

Loan Capital Formation Strategy of Companies I.D. Anikina*

Loan Capital Formation Strategy of Companies I.D. Anikina* Abstract Loan Capital Formation Strategy of Companies I.D. Anikina* Defines of principles, goals, objectives, stages and factors of loan capital companies. Analyzed the main methods of forming loan capital

More information

WEDF Finance Masterclass. Structured Trade Finance Techniques. Andre Soumah ACE Audit Control and Expertise. Zhann Meyer Standard Chartered Bank

WEDF Finance Masterclass. Structured Trade Finance Techniques. Andre Soumah ACE Audit Control and Expertise. Zhann Meyer Standard Chartered Bank WEDF 2010 Finance Masterclass Structured Trade Finance Techniques Andre Soumah ACE Audit Control and Expertise Zhann Meyer Standard Chartered Bank INDEX Typical Structured Finance Products in the Supply

More information

PRESENTS. Top 5 Financing Options for Auto Repair Shop Owners

PRESENTS. Top 5 Financing Options for Auto Repair Shop Owners PRESENTS Top 5 Financing Options for Auto Repair Shop Owners TABLE OF CONTENTS Financing Options for Auto Repair Shop Owners 3 Unsecured Business Loans 4 Equipment Leasing & Financing 5 Business Line of

More information

Non-traded financial contracts

Non-traded financial contracts 11-1 Introduction Financial contracts are made between lenders and borrowers Non-traded financial contracts are tailor-made to fit the characteristics of the borrower In business financing, the differences

More information

Business Plan Outline

Business Plan Outline Business Plan Outline Submitted To: The Community Development Transportation Lending Services, Inc., CDTLS Insert your Business Logo Here (if you have one) Insert Your Business Name Here Phone Number Here

More information

FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales

FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales Fall 2015 FCC Ag Economics: Farm Sector Health Drives Farm Equipment Sales 1 Introduction Agriculture is always evolving. Average farm sizes

More information

I BOARD 1 EXECUTIVE DIRECTOR 1

I BOARD 1 EXECUTIVE DIRECTOR 1 BOARD AGENDA: 1/26/10 ITEM: 7.1 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JOSE MEMORANDUM I BOARD 1 EXECUTIVE DIRECTOR 1 SUBJECT: SEE BELOW DATE: JANUARY 14,20 10 I SUBJECT: UPDATED SMALL BUSINESS LOAN

More information

SME Banking-Africa. A Unique Opportunity for the Continent

SME Banking-Africa. A Unique Opportunity for the Continent SME Banking-Africa A Unique Opportunity for the Continent Key Messages More to be done The opportunity Challenges in SME financing Profitable segment A proposed solution 2 SMEs in Africa- The Missing Middle

More information

Commodity Trade Finance CAIA Zurich. February 2013

Commodity Trade Finance CAIA Zurich. February 2013 Commodity Trade Finance CAIA Zurich February 2013 Contents Some statistics about world trade 03 Financing the commodity trade flows 06 Commodity trade finance : the market 08 Why invest in commodity trade

More information

OUTCOME AND IMPACT LEVEL INDICATORS AGRICULTURE & RURAL DEVELOPMENT WORKING PAPER: OCTOBER 2009

OUTCOME AND IMPACT LEVEL INDICATORS AGRICULTURE & RURAL DEVELOPMENT WORKING PAPER: OCTOBER 2009 EC EXTERNAL SERVICES EVALUATION UNIT OUTCOME AND IMPACT LEVEL INDICATORS AGRICULTURE & RURAL DEVELOPMENT WORKING PAPER: OCTOBER 2009 This working paper outlines a set of indicators at the outcome and impact

More information

So You Want to Borrow Money to Start a Business?

So You Want to Borrow Money to Start a Business? So You Want to Borrow Money to Start a Business? M any small business owners cannot understand why a lending institution would refuse to lend them money. Others have no trouble getting money, but they

More information

KSG Agro S.A. Unaudited Interim Condensed Consolidated Financial Statements. 31 March 2015

KSG Agro S.A. Unaudited Interim Condensed Consolidated Financial Statements. 31 March 2015 Unaudited Interim Condensed Consolidated Financial Statements Contents Statement of the Board of Directors and management s responsibility INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited

More information

MRRA Revolving Loan Program for Tenant Leasehold Improvements and Working Capital. Lending Policies and Procedures

MRRA Revolving Loan Program for Tenant Leasehold Improvements and Working Capital. Lending Policies and Procedures MRRA Revolving Loan Program for Tenant Leasehold Improvements and Working Capital Lending Policies and Procedures Midcoast Regional Redevelopment Authority Mission Statement MRRA was established by the

More information

SOME ISSUES IN THE FULLY-WASHED COFFEE CHAIN IN RWANDA

SOME ISSUES IN THE FULLY-WASHED COFFEE CHAIN IN RWANDA SOME ISSUES IN THE FULLY-WASHED COFFEE CHAIN IN RWANDA February 9 th 2015 Kigali Rocco Macchiavello Warwick University & IGC Ameet Morjaria Harvard University Questions MAIN QUESTIONS Is FW coffee profitable

More information

Warehouse Receipt System From Banks Perspective

Warehouse Receipt System From Banks Perspective Warehouse Receipt System From Banks Perspective July 2011 By: Andrew K Bwalya- Director/Head Agribusiness Commodity Value Chain and Key Players Value chain Input Supply Agricultural Production Storage

More information

www.development.ohio.gov

www.development.ohio.gov Minority Business Development Division Joseph Brooks (614) 466-5065 joseph.brooks@development.ohio.gov www.development.ohio.gov The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services

More information

SBA 7(a) Government. Guaranteed Loan Program

SBA 7(a) Government. Guaranteed Loan Program SBA 7(a) Government Guaranteed Loan Program SBA Overview The U.S. Small Business Administration (SBA) Was Created By Congress In 1953 To Assist And Counsel Small Business Growth And Prosperity, Thereby

More information

Your Logo Here Creative Ways to Finance Your Working Capital Needs. February 22, 2012 2/24/2012

Your Logo Here Creative Ways to Finance Your Working Capital Needs. February 22, 2012 2/24/2012 Your Logo Here Creative Ways to Finance Your Working Capital Needs February 22, 2012 1 Trade Finance Tools Classic Trade Products: Letters Of Credit, Collections, Open Account Enhanced Trade Products:

More information

Social Impact Report FY FY 2013 2013

Social Impact Report FY FY 2013 2013 Social Impact Report FY 2013 Message from the Chief Executive Officer I am pleased to present our second annual Social Impact Report. In this report, we discuss our various initiatives within the impact

More information

Sources of Funds: Equity and Debt

Sources of Funds: Equity and Debt Sources of Funds: Equity and Debt The Secrets to Successful Financing 1. Choosing the right sources of capital is a decision that will influence a company for a lifetime. 2. The money is out there; the

More information

Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities.

Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities. Accounting Fundamentals Lesson 8 8.0 Liabilities Current liabilities - Obligations that are due within one year. Obligations due beyond that period of time are classified as long-term liabilities. Current

More information

Export Transactions. Finance and Risk

Export Transactions. Finance and Risk Export Transactions Finance and Risk Table of Contents Export Finance Export Finance Methods Pre-Export Export Finance Methods Post-Export Structured Commodity Finance Export Risk Forms of Export Risk

More information

Commodity Inventory Financing - An Australian Experience. Ron Storey NZX Australian Agribusiness

Commodity Inventory Financing - An Australian Experience. Ron Storey NZX Australian Agribusiness Commodity Inventory Financing - An Australian Experience Ron Storey NZX Australian Agribusiness 1 Copyright NZX Ltd. 2014 Agenda Clear Grain Exchange what it does, how it works How banks can hold title,

More information

Adapting business models to incorporate smallholders into Global Value chains. Presentation by

Adapting business models to incorporate smallholders into Global Value chains. Presentation by Adapting business models to incorporate smallholders into Global Value chains. Presentation by Apollo Owuor Kenya Horticultural Exporters Limited To the Multi Year Expert Meeting on Investment, Innovation

More information

livelihoods? Evidence from Zambia

livelihoods? Evidence from Zambia Do outgrower schemes improve rural livelihoods? Evidence from Zambia National Vision 2030. pro poor growth requires a focus on agriculture and rural development (GRZ, 2005). Davison Gumbo Position of Zambia

More information

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute

How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute How to Assess Your Financial Planning and Loan Proposals By BizMove Management Training Institute Other free books by BizMove that may interest you: Free starting a business books Free management skills

More information

WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM

WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM WELLS COUNTY ECONOMIC DEVELOPMENT SMALL BUSINESS REVOLVING LOAN FUND PROGRAM Wells County Economic Development has developed a revolving loan fund program through a grant from the United States Department

More information

Roles of Public and Private Banks and other Financial Institutions for Effective scaling up of the Insurance Products

Roles of Public and Private Banks and other Financial Institutions for Effective scaling up of the Insurance Products Roles of Public and Private Banks and other Financial Institutions for Effective scaling up of the Insurance Products Introduction To achieve the ambitious average GDP growth of 9 per cent per annum target

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

CHAPTER 27. Short-Term Financial Planning. Chapter Synopsis

CHAPTER 27. Short-Term Financial Planning. Chapter Synopsis CHAPTER 27 Short-Term Financial Planning Chapter Synopsis 27.1 Forecasting Short-Term Financing Needs The first step in short-term financial planning is to forecast the company s future cash flows. This

More information

How to Finance Export Receivables. By Michael D. Farstad Export Finance Lender

How to Finance Export Receivables. By Michael D. Farstad Export Finance Lender How to Finance Export Receivables By Michael D. Farstad Export Finance Lender Table of Contents New Products Working Capital Supply Chain Finance Guarantee Program Global Credit Express Loan Guarantee

More information

Guide to Sources of Financing for Companies

Guide to Sources of Financing for Companies Guide to Sources of Financing for Companies By John A. Leonard Director, Fairfield and Woods, P.C. Below is a short guide to sources of financing for companies. Twenty-two sources of financing are listed,

More information