Product design is an essential element in the optimisation of operations for FIs. Therefore, we offer a full range of services that includes market and institutional assessment, product design and definition, product adjustment, value chain identification, pilot test, pilot test assessment, and final roll-out.
Since the cash flow cycle in agricultural production does not conform to the monthly cycles of credit cards, IAS has developed a special agricultural credit card called the Agri-Card. It allows agricultural producers to purchase agricultural inputs and repay to the bank during harvest time. In addition to operational efficiency, clients can define cash limits for items. This provides a method to control farmers’ expenses and ensure that they only spend for agricultural production.
Warehouse Receipt Finance
Financial instruments, such as warehouse receipts, help institutions reduce the risk of agricultural lending. They also enable farms to access loans while waiting for a better price for their products. In order to work, such schemes must be well developed and legally viable. We support financial institutions that wish to develop this product by identifying strategic partners and establishing links for financial schemes based on warehouse receipts.
Project and Investment Finance
Some FIs focus on the higher end of the rural and agricultural lending market through agricultural investment and project finance. Financing these large investment projects requires agronomic risk analysis and projection skills. For such clients, IAS works with agronomists and agri-lending experts who are specialised in a broad range of farming and agriculture products. IAS provides insight into farm business strategy, operations, production, processing, marketing, product diversity, technology transfer, planning labour and machinery, use of machinery and equipment, benchmarking with comparative performance data, quality control, budget and cash flow preparations, financial projections, and credit management. Our consultants transfer both the technical and business skills required to service these select agricultural enterprises.
Value Chain Finance
Value chains are essential structures in the commercialisation of agricultural products, especially for small farmers. Strengthening links within the value chain ensures that small producers can generate income and repay loans, which translates into better agriculture portfolios and cost reductions for FIs. Our services identify potential agriculture value chains for financing. We can create or adapt financial products to meet the individual characteristics of a value chain. This includes financing schemes, value chain mapping, establishing links between value chain actors, implementing agricultural value chain finance mechanisms, rebuilding and restructuring value chains through innovative financial products, team building to increase the cohesion of actors, and fostering coordination among value chain actors.