collateral

AgCLIR Lessons from the Field: Getting Credit

Attached Document: 
Source: 
USAID/BizCLIR
Document Type: 
PDF
Date: 
January 10, 2011

There are special risks for providers of agricultural credit including seasonality of production, geographic pockets of business failure, producers’ inability to use real or movable property as collateral, and difficulties in enforcing contracts on intangible property. AgCLIR Lessons from the Field: Getting Credit is a briefer that highlights the specific issues that must be addressed in regards to the local legal, regulatory, and institutional environments in starting an agribusiness. 

 

AgCLIR Chapter: Getting Credit

Virtually all modern businesses rely upon credit: for operations, to bridge the gap between production of products and payment for them; for investment, as buildings and capital equipment are generally multiples of annual revenues; and to cover swings in supply and demand conditions.

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