CREDIT & FINANCING METHODS

We will differ from such approaches, spreading the agricultural loans between the banks just means spreading the defaults among the banks in Ghana. We would suggest the IRS of USA approaches.” You can’t fight the City Hall”. We will institute a better insurance coverage, a guarantor and or an active and dynamic collection agency.

Why are most agricultural loans so? We believe the major part of the problem stem from absences of 1) Insurance for the loans, 2) Absence of vested, interested and hand-on players involve with the loans and loan guarantors, 3) Absences of Loan securities and inputs as collateral to back the loans and a weak loan servicing company(s). These may account for peculiarities of agriculture loans. Banks and bankers are not farmers and farmers are not bankers, there has to be an intermediary between both, whose interest will be at stake if the loan fails. These observations came about by our company search of financing for commodity import/export financing in Ghana and USA.

A loan Insurance and securities are particularly needed in the event of force majeure or fortuitous event. After national disasters or weather failure it takes some farmers a year or two to come to the same production level, even with farm loans availabilities. We can not expect an agricultural banker to supervise farmers for what they do with those loans. Of cause not, and even if there are any due diligence, I bet, it will not be as satisfactory as a vested partner(s).

Our system will initiate franchising, integrated with commodity credit & marketing by integrating credit and finance with Insurance, Land rental cost and preparation, Fertilizer requirements, projected production and transportation costs, and projected Sales, in a seemingly continuous system. Trust, Proof, but Verify will be our credit culture.

Part of the constraints in the remote areas of Ghana towards Agricultural Financing has been listed as  a) lack of access to banks, b) fear of not being able to pay, c) lack of knowledge source of credit, d) stiff collateral requirements. The small remote farm holders are also confronted with access to market information to depend on loans and inability to cope with bad years and no capability to draws on additional capital. While some of these constraints may have been lessen due to the dedicated work of ADB (Agriculture Development Bank) and innovative agricultural financing elsewhere, most still persist.

CORN FINANCING

The loan cap amounts shall be based on the size of the farm land or production amount, the actual scenario will be later determined by the loan risk analysts.
And loan dispensing amounts shall be in progression of work needed to be been done at production phases.

Loan application