Producer lending products

Fair trade export credit

The purpose of this facility is to provide sufficient money to producer groups to enable them to fulfil their orders, grow their businesses and increase their social impact, by providing sufficient working capital to complete and deliver new orders.  Customers are provided with a facility enabling them to borrow a maximum of 80% of the value of any order received (60% for most commodity orders). Repayment is made on delivery when the buyer pays for the order via Shared Interest.  We deduct the amount borrowed and any interest due.  To access this facility orders must be made with a fair trade buyer who has a Shared Interest account.

Commercial order export credit

This facility is for fair trade producer groups who are selling goods to commercial firms or fair trade buyers who do not have an account with Shared Interest.  Where a buyer does not provide pre-finance, we can step in and assist a producer group in financing an order, which otherwise they might not be able to fulfil.  Repayment of lending is made when orders are delivered.  On delivery of an order the buyer pays the full value of the order to us and we deduct the amount borrowed and any interest generated and then transfer the remaining money for that order to the producer group.

Term loans

We offer producer groups term loans for the purchase of assets such as machinery, buildings or vehicles.  Borrowing is for between one and five years and repayments are set depending upon the circumstances of the producer group, with the exception of plantation renewal where we can offer a term of 7 year. Loan sizes are determined by the financial situation of the producer group and their ability to repay the loan.

Stock facility

We offer producer groups a short term revolving loan for the purchase of stock. Borrowing is for up to a 12-month period and repayments are set depending on the circumstances of the producer group. Facility sizes are determined by the financial situation of the producer group and its ability to repay the loan. 

Pre-harvest loans

The purpose of this facility is to allow producers to finance the usual farm production processes and maintenance of crops e.g. inputs such as fertilisers. This will provide a direct impact on yields especially where the present level of fertilisation is insufficient. This lending product is very similar to the Stock Facility and will be attractive to coffee and cocoa cooperatives in particular, which is where we see most demand.