|
Some of the products under MacFin are:
i. Commercial village savings The Commercial villages, which collectively market and sell their produce over a period of time, set aside a proportion of the revenue as group savings.

ii. Invoice discounting Invoice discounting is a form of business financing which entails selling of invoices in exchange for immediate payment. It helps eliminate the 30 to 90 days credit period that formal institutional buyers take to pay suppliers invoices thus provides suppliers with working capital that they need to run their business.
iii. Farm Input Financing
FCI in partnership with farm input suppliers has designed a farm input financing scheme to benefit smallholders in FCI targeted sites. Through this, farmers are able to access basic inputs like quality seeds, agro chemicals and fertilizers at affordable prices. RETAIN THIS PICTURE
iv. Transport Financing Transport financing scheme enables smallholders in different Commercial Villages to pay for transportation costs. Since smallholders sign supply agreements with institutional buyers, FCI identifies reliable transporters to ensure timely delivery of fresh produce to these buyers. Periodically, FCI facilitates transport discounts and credit on behalf of farmers who repay at future agreeable dates.
v. Commercial Village Investments Traditionally, smallholders have a low investment culture, high consumption rate and inadequate savings. Through the commercial village model, farmers are empowered to pool together their resources and use them to invest both at group and individual levels. vi. Business Transaction Documents Financing Due to improper or inadequate record keeping, smallholders are unable to access formal markets and business development services. FCI develops business transactional documents on behalf of the commercial villages and farmers repay through deductions from sales over a spread period of time. These documents include: sales order, invoice, sales receipt, delivery note and farmers’ savings book.
vii. Product Development Financing
This is a component of the MacFin model which seeks to equip the communities or commercial villages with promotional skills and provide funds to trigger and enhance market expansion. viii. Commercial Village Internal Lending Schemes With capital derived from Commercial Village savings, this scheme is designed to help commercial producer groups to access working capital as well meet transactional costs. Under the lending schemes, financing is extended to smallholders to enable them buy farm machinery, irrigation kits, storage facilities as well as value addition equipments.
ix. Commercial Village Stores Receipting This is a financial product in which small holders deposit their produce and are then able to attain credit against receipted and warehoused crops .This offers an opportunity for storage during bumper harvest and can be used as collateral during the next planting season .This relieves the farmers of financial strain and enhances appropriate agronomical practices.
|