As farmers expand their businesses and start to supply larger quantities to bigger markets, they urgently need capital to grow their businesses. But many farmers have limited assets to use as loan guarantees and often find it difficult to access working capital. When farmers have a business plan in place and have received a combination of technical and business training, we help them to access financing.
For example. In Chiapas, Mexico, we set up a revolving loan fund of $60,000 for four coffee farming cooperatives. By borrowing from the fund, they were able to meet larger orders for their coffee and avoid selling through third partners, ensuring more money went back to the farmers. All four cooperatives repaid their loans in full.
And in Honduras, we’ve partnered with local banks to offer farmers access to credit at a reduced rate through a guarantee scheme.