Making Asset Finance Work for Small Scale Agribusiness
Tuesday, September 27, 2016
A $50 billion dollar investment opportunity currently exists in the agribusiness sector for storage infrastructure, with the potential to raise income in small-scale agribusiness by 80-140%.
This report shows the first-hand experience and perspective of more than 70 participating asset finance experts at the ‘coal-face’ of the industry in Kenya, Guatemala and India.
There is still a huge gap in finance for small-scale agribusiness that locks entrepreneurs out of the opportunity to procure productive assets. Scaling-up asset finance creates an opportunity to reverse this situation.
This extensive and detailed report by Epven, with support from the Shell Foundation and the Small Foundation, clearly highlights critical success factors that drive scale in asset finance:
- The asset must be liquid in order to be used as collateral.
- Use cash flows to calculate financial viability and creditworthiness.
- The presence of a stable and secure market for the output.
- Network organisations like ANDE, the GIIN and the Sustainable Food Lab support more and better ecosystem collaboration between technology companies, financial service providers and producers and buyers along the agricultural value chain.