Dimitra Incorporated ($DMTR) is entering the agricultural lending market, making micro loans available to 570 million farmers globally through Dimitra’s proprietary agricultural management platform. The platform will provide loans in three areas, crop inputs, live stock, and trade finance. Dimitra is banking the unbanked by providing access to capital to those that don’t have access to capital. CeDeFi Breakdown
The loans that Dimitra is offering provide small holder farmers the opportunity to collateralize their crops by securing a loan with crop certificates (a promissory note related to harvest). For example, these loans can be for inputs (seed, fertilizer, and chemicals) which are then repaid upon harvest and when the crops are sold to market. Keep reading for a step by step guide on how these microloans work.
The following scenario is directly applicable to trade finance deals. Consider what happens if a farmer can produce the crops needed throughout the season. But is waiting on export or an external vendor for payment?
The trade finance method benefits both the farmer exporting their goods and the customer importing them by introducing Dimitra as a third party to mitigate their payment and supply risks. Dimitra provides the farmers with accelerated receivables and the customer with extended credit. Combining the financial and agriculture industries while integrating more parts in the supply chain gives farmers and exporters customers more opportunities to conduct business.
Each lending partner will receive access to a portal or application integration to help manage members and track each step from the loan approval to shipping, and lastly, payment. In addition, Dimitra will introduce more parties into the system by integrating trade finance, creating full transparency for each party involved.
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