Banks operating in the agricultural segment are actively developing credit products that allow agricultural enterprises to obtain financing for the purchase of land, agricultural machinery and fertilizers. Konstantin Lezhnin, Deputy Chairman of the Board for Retail Business of UKRSIBBANK BNP Paribas Group, told Maanimo how to get funding from financial institutions.
“This summer, UKRSIBBANK BNP Paribas Group has expanded its commercial offer to finance equipment on credit. The new program provides for the possibility of purchasing equipment, tractors, combines, trucks and other agricultural machinery for up to 5 years. UKRSIBBANK also finances the purchase of used equipment under the age of 3 from official dealers. The company’s contribution to the purchase of equipment starts with 20% of the purchase price including VAT and financing period – up to 5 years. Rates on this type of financing are 9% per annum in UAH. I will note that this is a transparent rate, without unexpected commissions. The purchased equipment is insured on standard terms,” Kostiantyn Lezhnin said.
UKRSIBBANK has been working in agro-financing of medium and small business for a couple of years. In addition to equipment on credit UKRSIBBANK finances the purchase of working capital for up to 1 year. We strive for long-term relations with customers and therefore provide financing at an attractive rate of 8.5% per annum in UAH. Funding is provided to cover cash gaps during the sowing of spring and winter crops. Also, our clients can receive working capital financing under the program “5-7-9” during the quarantine period at zero rate. The interest rate on a loan or credit line to replenish working capital is 8.5% per annum in UAH. 9% per annum on loans is for the purchase of agricultural machinery for up to 5 years. We try to support all customers who are successful in their business, and there are most of these companies. Usually we do not decline the appeals of our customers. The company will most likely be able to obtain a loan after agreeing to provide documents for business analysis. Important control points are profitability, level of creditworthiness, business reputation and credit history, the availability of collateral.
The material was published on August 27, 2021 on maanimo.com