Financing rural and agriculture based households has experienced a rapid growth over the last years. While the microfinance institutions and development banks have started to reach more of the agriculture entrepreneurs, the outreach of financial services in the agricultural sector is still limited. This is largely because of the irregularity of cash flow in agricultural households, unique and uncontrollable risks, such as weather and input prices, as well as lack of contracted farming and structured organization of the small holder farmers. In addition, conventional approaches to agricultural finance from development banks have been difficult and commercial banks have shed away due to perceived risks and costs. Microfinance institutions did not manage to provide a solution, as their products are still very expensive and not catering for the seasonality of the crops.
Advision Finance can help financial insitutions understanding and applying the value chain approach, enhanced with the alternative delivery channels implementation for small holder farmers, in order to provide financial services to small holder farmers in a succesful, sustainable way. We assist in developing strategic partnerships that increase opportunities, and implement technologies and approaches to reduce cost and risk in agricultural finacing.
Our services include design and roll out of agriculture financing models for microfinance institutions and banks, development of savings and loan products for farmers, assist with financial literacy programs, as well as facilitating partnerships with relevant parties within the value chain.