Advantages of mortgaging purchase of grain are given in article in comparison with the bank credit.
THAT it is BETTER – the BANK CREDIT OR MORTGAGING PURCHASE of GRAIN
Mortgaging purchase gives to agricultural producers a number of advantages. First, means can be received very quickly – within 3 days from the moment of grain delivery. At the same time the decision on issuance of credit usually accepts bank during certain, sometimes rather long, time.
Secondly, on the means obtained from pledge of grain, don’t charge any percent. But always it is necessary to pay for using bank loans the considerable sum.
Thirdly, through mortgaging purchase any owner of grain – not only legal, but also the individual can receive money. And banks don’t finance individuals, besides very carefully give out loans to those farms, where volume of production small.
Fourthly, during mortgaging purchase the owner of grain receives means which costs of the put bread equal. Meanwhile bank, providing a certain sum kredita, the pledge, which cost twice demands or even three times exceeds the credit sum.
Fifthly, for a polucheyoniya of means thanks to mortgaging purchase it is not necessary to have the previous credit history which demands from the borrower bank.
Sixthly, at will the owner of grain can not take away it from pledge and not vozvrashhat money to the state agent. In that case grain will carry over the state.
So, advantages of mortgaging purchase are obvious. However this form of attraction of current assets not poluchila great popularity among rural owners who prefer to resort to more acquaintance to them to procedure of receiving the bank credits.
(On Balans-Agro newspaper materials).