What is it
Agriculture Finance is a working Capital facility designed to help farmers bridge the gap between paying for agricultural inputs and receiving revenue for their crops.
Working Capital Partners pays the merchant on the farmer’s behalf and the loan is repaid over 4 easy instalments once the crop has been harvested and sold.
How it works
The process of agriculture finance is very simple. You have business clients that you invoice on agreed payment terms which could be from 30 to 90 days, but you need the cash now in order to keep your business running.
Some factoring companies lock you into a long-term contract for all of your invoices with a minimum monthly utilisation. Then they charge fees for everything from admin to late payment penalties. With agriculture finance we have simplified it.
You place your order with the seed/fertiliser merchant as usual.
You sign a simple assignment note promising to pay Working Capital Partners in 4 equal payments after the crops have ripened and been harvested.
Your inputs are delivered and utilised as normal.
Your payments are collected by direct debit 5-8 months later.
You are free to do it all over again, or not, as needed.
Working Capital Partners has a simple ‘pay as you go’ fee structure. There is no long-term contract, no administration fee and no minimum commitment. Agriculture Finance can be used once or as often as needed (subject to credit status) and is designed to ease the cash flow pressure on hard working farmers.
Speak to your Seed Merchant about whether Agriculture Finance could work for you.