Agricultural Value Chain Finance - a Guide for Bankers : Finding an Entry Point
The Agricultural Value Chain Finance – A Guide for Bankers was developed by bankers for bankers. The Guide is a practical "how-to" toolkit, detailing the process of engaging in agricultural value chain finance.
AgriFin developed the Guide in partnership with HDFC Bank, India, HBL Bank, Pakistan, and Bankaool, Mexico. It provides:
- Practical, evidence-based guidance to financial institutions engaging in agricultural value chain finance (AVCF).
- Comprehensive picture of agricultural value chains to enable financial institutions to adapt financial products to the specific demands of value chain actors.
- Examples of field-tested AVCF products and procedures that have shown value or promise for financial institutions.
The AVCF Guide can be used by financial institutions' staff including senior management to understand the strategic benefits of value chain finance, heads of agricultural lending departments and their teams to implement value chain finance, other bank staff for training and self-study. The AVCF Guide is also useful for development professionals supporting agricultural finance projects.
This is Chapter 4: Finding an Entry Point. In this step, guidance is provided on how to choose an entry point for financing. Financial institutions evaluating entry points into a value chain need to consider: 1) the organizational structure of the value chain; 2) financial flows with the associated risks; and 3) key players, lead firms. When looking at an entry point, there are important considerations beyond financial performance when determining the key actors with whom to work.
