Short-term loans are tailored to meet important financing needs in the agricultural cycle including the provision of advances – against crop intakes, production requirements, production credit and other related services that includes the handling, manufacturing, packing, processing, storage, transport and/or marketing of agricultural products.
Interest and costs
Interest rates are determined as follows:
- Interest rates are quoted nominal annual compounded monthly (NACM)
- Interest rates are not fixed over the term of the loan and can be adjusted from time to time based on fluctuations in the money and capital markets.
- There are no fixed terms of repayment. Draw-downs and repayments are regulated by the value of assets (stock and debtors) financed
- There are no transaction costs.
The term of short-term loans is linked to the season, usually a maximum of 18 months