Financial institutions, including banking institutions, are distinguished by the professionalism of the operation, but also by the specialization of the products and services offered. This is not surprising, and it is an expression of the best fit of the offer to the real needs and expectations of customers. Since Poland’s accession to the European Union, where many EU programs operate, it supports the development of agriculture, and the purchase of some banks also included a purchase loan. Unfortunately, still only a few entities have decided to introduce this product.

Purchase loan is not only resources for buying crops – what else can it be used for?

Purchase loan is not only resources for buying crops - what else can it be used for?

The name itself – purchase price? gives grounds to believe that, in simplification, these are financial means granted to applicants for buying a specific category of products. However, the actual purpose of this loan is much wider. First of all, this type of financing is granted for the purchase of broadly understood agricultural products. Thus, it can mean, for example, the purchase of vegetables such as rape or potatoes, but also waste from agricultural production. In addition, this loan is dedicated to people who purchase not only the fetuses roles in the primary form, but also their processed forms, i.e. semi-finished products, and even ready-made preserves from fruits and vegetables. Currently, the purchase loan is also granted for the purchase of straw or seeds. What’s more, the purchase loan can also be allocated to other activities related to agricultural crop turnover. Thus, for example, to finance the costs of their purchase, and then the storage, when these goods come from surpluses of seasonal dairy products. One very important limitation should be noted when considering applications for financing by banks. Namely, it can not be granted to farmers or producers using the discussed agricultural products for the production of alcohol.

What are the most common conditions for obtaining a purchase loan?

What are the most common conditions for obtaining a purchase loan?

Most often, to aspire for such a loan, a given person must have the title of a domestic entrepreneur who deals with the purchase, storage or processing of agricultural products in a broad sense. In addition, such entities are obliged in their activities (especially buying) to use prices set as top-down guidelines by the Council of Ministers. What’s more, the applicants are obliged to provide all certificates confirming such status.

Crediter SA is a leader in granting a purchase loan

Crediter SA is a leader in granting a purchase loan

While loans for financing agricultural or investment activities in this pillar of the economy are increasingly appearing in the offers of banks, the purchase loan still remains outside the interest of many banks. The unchallenged leader in paying those interested in such support is Crediter SA. The offer of this entity seems very attractive to interested parties. Why? Above all, such support can be provided by entrepreneurs with diverse status, i.e. not only legal persons, but also natural persons or even organizational units without legal personality. The bank also pays the purchase loan in a much larger number of cases – even to entrepreneurs who purchase straw for heating purposes. What is important, the client has a very flexible repayment date for the contracted liability. It can be done on a one-off basis, in an installment system or in a proportion depending on the amount of inventory. The form of repayment depends to a large extent on the collateral held. Crediter SA grants this loan also in many currencies, among them the following: American dollars, Euro, Swiss francs and British pounds. For other currencies, consult your advisor. However, it should be remembered that the interest rate on this liability varies over time.

More and more Cooperative Banks are introducing a buying loan into their offer – analysis of selected offers

More and more Cooperative Banks are introducing a buying loan into their offer - analysis of selected offers

The idea of ​​granting purchase loans to those interested begins with the cooperative banks. This is not surprising, since these types of institutions tend to designate their readiness to financially support broadly understood agriculture on preferential terms. However, buyer loan offers are somewhat diversified in the branches of cooperative banks. For example, the purchase loan in Bank Snaet in Żory has three parameters:

  • loan period: up to a year,
  • interest rate, variable, however not less than 8%, calculated as the rediscount rate for the discount of the National Bank of Poland,
  • commission at the level of 2% of the value of the purchased purchase loan.

A similar offer is in the Cooperative Bank in Nasielsk. Here, however, it is pointed out that the 12-month loan period has no final form, and in some cases it is possible to extend it by up to another 6 months. This entity also offers so-called interruptions in repayment of loan installments even up to several months.

Despite the proposals of cooperative banks, the offer of Crediter SA still seems unrivaled

Despite the proposals of cooperative banks, the offer of Crediter SA still seems unrivaled

The offer of Crediter SA is still unrivaled for all those entrepreneurs who want to quickly make a purchase of the agricultural produce they are interested in. In addition, the proposal is also very attractive for those who value convenient loan repayment terms and the possibility of suspension of installments in the event of unfavorable economic conditions. With reference to the offer of a purchase loan in cooperative banks, Crediter SA is more advantageous because clients are guaranteed:

  • consideration of their loan applications with immediate effect,
  • the possibility of negotiating the final repayment terms, which is the result of consultations with the advisor and proper matching to the applicant’s possibilities,
  • flexibility of the repayment dates of the incurred debt. However, subsequent dates depend on the effectiveness of the applicant and his progress in the resale of purchased stocks.

It is worth noting that the purchase loan is often offered to interested parties along with other products, eg combining the discussed financing with factoring. By choosing this option you can negotiate more favorable conditions.

In summary, it is reasonable to recognize that the purchase loan is a special type of financial support dedicated to people associated with the agricultural sector. Still, few banks decide to introduce it to their offer. Crediter SA remains the leader in this field. However, this is not surprising, as this entity grants it to its clients on very preferential terms. In addition, the repayment of the liability is conditioned by the transfer rate of purchased agricultural products by the borrowers. The use of a purchase loan is finally even more profitable when the applicant already uses other products of that bank. When considering the decision to submit a purchase loan application, it is worth choosing those institutions that, in addition to the preferential interest rate, also offer it in the current account without having to provide documents regarding the use of the funds provided.