The Albanian Agriculture is having an increasing important and dynamic role in the economy. These positive developments have made the financing of agribusiness quite attractive, taking an important place in the banks and financial institutions policy and strategy of lending. Banks and financial institutions offer special loan products to address the specific needs of businesses across different sectors of agribusiness. However, within this broad products range with different terms and conditions of credit, the main financing products remain Investment Loans and Working Capital Loans
Investment loan is designed for businesses planning to invest in their business activity for construction or purchasing business facilities, buying new agriculture technologies for agro processing lines, agro machineries and other investments for their agribusiness activity. Investment loans are offered in local or foreign currency with a medium term up to 10 years. Depending on the total amount and the type of investment is required that agribusinesses provide guarantees or collateral to secure their loan total amount.
Working Capital Loan
Working Capital Loan is used for short-term financing needs for agribusinesses, tailored to suit business’s everyday operations. It’s used to clear up accounts payable, wages, purchasing raw materials etc.
This Loan is often provided as overdraft, which is a credit line that gives to businesses the possibility of withdrawing at any time from the current account up to the approved limit amount.
Agribusiness loan is tailor made to suit agribusiness growing needs. Banks and Financial Institutions focus remain the speed and simplicity to facilitate lending to agribusiness.