Financing plays an important part in enabling the agricultural supply chain to fulfill its function to source farming inputs and distribute food output. Banks, for example, help facilitate payments or grant trade and investment loans. In similar fashion, the Ameropa Group assists many companies with financing, mainly in the form of granting credit terms.
Many of these companies are located in developing and emerging countries with an insufficient credit history or an underdeveloped domestic banking sector. We also give credit to farmers by providing them with crop inputs such as seeds, fertilisers or crop protection, and receiving payment only after their harvest is collected. Through Ameropa's good credit standing and access to capital markets, we can re-distribute funds at our own risk and significantly lower cost. Our function in giving customers access to capital plays a vital role in helping farmers and companies operate without state or bank support and is having a direct positive impact on job generation in the affected countries.
The Ameropa Group manages the credit risk through a mix of personal relationships, site visits, individual customer due diligence, intense monitoring of the credit exposure and credit insurance.
We work with over 30 banks to fund our activities, ranging from trade credit facilities to investment and project loans. Ameropa's good standing is supported by a conservative balance sheet policy with low debt levels and high equity proportions.