South African fresh produce exporter Capespan has launched a new financial institution, Capespan Capital, to provide its grower-suppliers with access to a dedicated range of comprehensive finance options that will support their development.
Based in Stellenbosch, the joint venture brings together Capespan and agricultural finance specialist Capital Harvest, in partnership with Landbank as financier.
Capespan Capital's executive manager Pikkie Swart, who has been seconded from Capital Harvest to oversee the operations, explained that the company's financial solutions would be structured in line with producers' income potential.
'The credit application process is easy and efficient, while turn-around time for application approval is market-beating,' he explained. 'Although in line with commercial bank products, ours are suited specifically to the agricultural sector needs and offer superior repayment structures.'
The new company's product line includes term loans, instalment sale agreements, a revolving credit facility as an alternative to overdraft facilities and a production finance facility.
Swart said the latter would be made available to qualifying fruit producer-exporters, explaining that it deviated from traditional production facilities and was not offered by commercial banks.
'Finance is offered according to the cash flow needs against a cession of the harvest as main security,' he said. 'No tangible security such as bonds is required. By continuously monitoring the harvest and contractual relationships with Capespan to ensure cash flow control, delivery and repayment risks are mitigated.'
He continued: 'Not only do producers have access to the Capespan Group's global marketing network, efficient supply chain solutions and technical and procurement expertise, but also to expansive financial solutions at competitive interest rates.
'In addition, producers can bank on Capital Harvest's knowledge, credit expertise and agriculture finance experience.'
He stressed that Capespan Capital's raison d’être was to ensure that Capespan producers succeeded against the odds in an increasingly challenging farming environment.
