"Agro-Business Bank of Georgia" provides a range of flexible loans and overdraft facilities to meet all of customer's borrowing needs. These include: Overdraft Facilities At ABG, overdrafts can be arranged quickly and easily to fund day-to-day expenditure and allow customer to obtain additional cash when customer need it most. The interest rate is negotiable and will depend on factors such as customer's trading record, available collateral, and specific business proposal. The overdraft facility is usually renewed annually or more frequently in line with the nature of customer's business. The annual review, complete with accounting information will determine the limit within which the borrowing can fluctuate throughout the year. Seasonal Loans ( interest rate 18%-22% p.a ) This covers working capital facilities for all types of crops, vegetables, tree crops and livestock together with their associated processing activities for periods of up twelve months or longer in line with the contents of customer's business plan. Longer Term Loan (interest rate 18%-22% p.a ) For major capital investments including fixed asset purchase, it may be preferable to borrow by way of a loan account. Loans are available for any kind of agricultural business investment , livestock and equipment purchase, building or renovation projects and , importantly, for the acquisition of land and/or processing equipment. ABG loans are flexible and available for periods up to three years initially. They can include a capital repayment holiday, which allows customer, for example, to repay only the interest during the formative stages customers business. This is ideal for projects where there is a time lag between investment and return. Repayments can be made over periods of up to 5 years , with fixed or variable rates of interest. The loans can be repaid by regular installments throughout the agreed term or irregular pattern to suit customer's cash flow. Alternatively loans can be repaid by lump sums (bullet repayment at the end of the loan period). Leasing and hire purchase (From early in the year 2000 subject to legislative requirements) Leasing and hire purchase can provide a popular alternative to a loan if customer needs to raise finances for agricultural machinery, equipment and /or vehicles. Easy to arrange , it means you can enjoy the advantages of ownership from day one of the agreement. Leasing and hire purchase can also have tax advantages over outright purchase in addition to safeguarding cash flow by not tying up working capital. Finance Lease Under this option , the ABG bank will retain legal ownership of the asset for the duration of the term of the lease and customer pays rental for the use of the asset over an agreed period. At the end of the agreement , customer can choose between extending the lease or selling the asset on our behalf and retaining a proportion of the sale proceeds. Operating Lease Again, the ABG bank will retain legal ownership but, at the end of the hiring period, customer returns the asset to bank and disposal is bank's responsibility. The rentals charged reflect only the anticipated depreciation in value of the equipment over the hiring period, plus finance charges. Hire Purchase This is the most attractive option if you would like to own the asset outright at the end of the term, having paid final installment. There is a choice of fixed or variable repayments and you have the choice of repaying the facility over several years. Credit Union loans The RARP projects assisted in the formation and management of a number of credit unions in Georgia. The ABG will continue to support existing and newly established credit unions with loan facilities on a seasonal or longer term basis together with recently established Agro-Business Centers. |
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Project Supported by TACIS |
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