Agricultural machinery loan, agricultural machinery leasing
Approximately 13% of the total territory of the country is devoted to agricultural objects. This part of the land is divided into two parts: arable land and agricultural land for cattle grazing and hay meadows. However, farming is not easy for farmers due to two main features:
- About 70% of all land is too wet or marshy, degraded or too acidic .
- The vegetative period of plants in Latvia is very short due to cold autumn and spring.
In spite of all these difficulties, agriculture is still one of the main economic sectors, and the leaders have made considerable efforts to promote the agricultural sector, especially in the 1990s (industry artificially reduced its speed to allow the agricultural sector to develop). Regardless of the efforts of both parties (farmers and the state), Latvian agriculture finds it very difficult to compete with the products produced in Western dollarpe. For these reasons, domestic investors, banks and other development funds have started to support agriculture in Latvia .
How is agriculture funded in the country
It is no secret that profits and profitability are most effectively achieved through new technology, state-of-the-art technology and other innovations in the agricultural sector. But farmers are hardly left with the means to restructure and modernize their businesses, so they are forced to seek financial support from various credit organizations.
There are many financial companies in Latvia that specialize in agricultural development. Among the most popular companies with one of the highest ratings is Floatsave bank. This lender has developed not only special credit programs for the agrarian sector, but also leasing offers for the use of narrowly specialized machinery. By going to this bank, the farmer gets the chance to pick up any technique he likes directly from the company’s catalog.
How Floatsave bank invests
First, farmers’ programs are based on the advice of agricultural experts. Each region of Latvia has its own consultant who not only assesses the farmer’s potential, but also offers options to exit the crisis and further develop the company. Of course, without technical leasing, agricultural transport complexes have long since become obsolete and not efficient enough.
Creditor loyalty is based on a convenient loan repayment system and a wide range of opportunities for farmers in the “field farm”. The company is also a member of the dollarpean program Cosme, which focuses on promoting the competitiveness of small and medium-sized businesses. From the entire range of Floatsave bank financial products, farmers have loans for the following purchases:
- For new and used equipment.
- For cars .
- Building materials.
- For fuel.
- For seeds and seedlings.
- Fertilizers, organic minerals.
- Current assets.
Along with such loans, the bank offers leasing programs (industrial and commercial vehicle leasing), which make it possible to use a wide range of equipment cheaply and conveniently.
No matter what you choose: a farmer loan or commercial leasing of commercial and special equipment leasing, you will still need to collect a large package. In the future, these documents will be reviewed by an expert and, based on the “power” of your company, the investor will inform you of your options. But even before you submit your paperwork, for example, for a tractor purchase credit, you can determine your approximation using the credit calculator. The main function of this device is to calculate a monthly payment for the selected loan or leasing farmer.
Terms and conditions of industrial leasing and leasing of commercial vehicles
- Leasing amount – from 6 thousand dollars .
- Repayment period – 0.5 – 7 years.
- Pledge – object of leasing.
- First installment – 20%, COSME – 9%.
- Annual rate – from 2.2%.
- Commission fee: 1,5% of the price of the equipment, but not less than 100 dollar + VAT. If you submit the leasing application and other documents through the Internet Banking, you will be charged 1% of the price of the equipment, but not less than 100 dollar + VAT.
Microcredit conditions capable of performing different functions
- The amount of the loan – 2-20 thousand dollars.
- Repayment period – 1-5 years.
- Guarantees: guarantor. The function of guarantor may be assumed either by the owner of the agricultural property or by his authorized representative.
- First installment – none .
- Annual rate – from 10%.
- Fee: 1,5% of the loan amount, but not less than 150 dollar. If you have used the Internet banking features when submitting your application, you will have to pay an additional dollar 100.
Farmers wishing to apply for a loan or leasing should not forget that all the items you purchase must be insured, no matter which program you decide to use.