Thanks to the new service, agricultural installments of up to UAH 2 million became available to small farmers

In order to ensure the uninterrupted operation of their business, small farmers are constantly looking for ways to optimize their own costs. Financial company Activitis, with the support of the USAID AGRO Program, launched the WEAGRO project, which offers agricultural producers a new approach to purchasing goods and services.

This is stated in the special project "Buy now - pay later: what you need to know about the agricultural installment service WEAGRO" on Kurkul.com.

As noted, the project is aimed at farmers who have a land bank of up to 1,000 hectares.

"The idea arose to create a financial instrument that would simplify the process of purchasing necessary goods and services in the event of a lack of free funds for farms with a land bank of up to 1,000 hectares. Using this tool, the farmer will no longer be forced to spend time, as for processing a loan with a bunch of documents," said Pavlo Matiyash, CEO of the financial company Activitis.

According to him, banks are not interested in farms that have less than 500 hectares under cultivation. There is a significant cost to the analysis of such an economy and its maintenance, so it is not easy for banks to lead such a client.

"Our solution is as digitized as possible, therefore, for example, the issue of the minimum amount (let's tentatively take UAH 50-100 thousand), which may be unattainable for banks, is absolutely acceptable for the WEAGRO service," Pavlo Matiyash added.

Thus, a farmer who has a small amount of free working capital, with the help of the WEAGRO service, can most conveniently solve either urgent issues in the midst of sowing (when, for example, it is necessary to urgently buy additional seed material), or pre-planned management measures (such as: update the attached equipment that you want to buy on installments) so that you pay for what you purchased during the harvest period.

That is, with WEAGRO, a farmer can implement his business needs both promptly and in advance.

As Pavlo Matiyash pointed out, in this model, the agricultural producer does not interact with the financial company at all. The WEAGRO service provides a decision on the possibility of installments in 30 minutes, and an agreement on agricultural installments can be concluded in 2 hours, after which the seller will receive funds, and the farm will receive the necessary goods or services with payment in installments or with a delay.

As Pavlo Matiyash summarized, the maximum amount of agricultural installments is UAH 2 million.