Speed and simplicity in financing the purchase of agricultural machinery. These are the main advantages of the Smart Finance online system, another digital tool among the products that can be negotiated with a few clicks at MONETA Money Bank in the Czech Republic. Last year, the Bank launched the system, intended primarily for entrepreneurs running agribusinesses. Its popularity is confirmed by the volume of agreements concluded so far. As of today, it has approached the mark of CZK 500 million (approx. EUR 21 million).
Time-saving is primarily in the loan application phase and in the approval phase, which in some cases takes place automatically. Another added value is zero fees, minimal documentation, and also the possibility of biometric signing of agreements.
In addition, loans arranged through Smart Finance are compatible with the subsidy programs of the Supporting and Guarantee Agricultural and Forestry Fund (SGAFF), and with the Rural Development Programme.
“We are happy to have come up with a solution that makes life easier for farmers, especially given their demanding workload. Smart Finance enables simple financing of agricultural equipment, and our customers no longer have to deal with complex bureaucracy,” – said Barbora Kobiánová, Sector Manager for Agriculture at MONETA Money Bank.
Smart Finance also makes it possible to connect the customer directly with an agricultural equipment dealer, who will immediately present him with a specific offer for the purchase of the machine and the details of its financing. The seller thus has the opportunity to process the entire loan directly in the system with the customer. At the same time, you can arrange “all risks” insurance through Smart Finance and include the insurance premium in the loan installments. The platform makes it possible to finance even machines older than 10 years for a term of up to 72 months, otherwise, the maximum financing term is 10 years.
The fact that MONETA, as a former Agrobanka, is attractive to agricultural customers in the long term is also evidenced by the growth of newly arriving customers: since 2016, when MONETA entered the stock exchange, it has grown from the original 7,450 to the current 10,496, which is an increase of 41%. Since 2016, the Bank has provided loans for the purchase of land in the amount of CZK 8.76 billion (approx. EUR 365 million).
Last year, the Supporting and Guarantee Agricultural and Forestry Fund (SGAFF) provided support mainly for operational purposes to mitigate the negative effects of the increase in the prices of input commodities.
“Thanks to the pre-approved limits, we were able to serve almost 700 customers among farmers. By processing the loans quickly, we enabled them to meet the deadlines prescribed by the subsidy program and thus receive support in the form of a principal reduction of CZK 175 million (approx. EUR 7 million),” – says Barbora Kobianová. “We then provided another 361 customers with operational financing through an operational loan for SMEs, where the processing of the loan was also easier thanks to the subsidy conditions,” – she adds.
Other supports in the agricultural sector relate to investment subsidies that are not tied directly to financing. The customer can therefore receive them even if he financed the given investment from his resources. In 2022, MONETA mainly supported investments in eco-energy projects, from the National Renewal Plan under the Ministry of Industry and Trade of the Czech Republic and the Modernization Fund from the State Environmental Fund. Here, farmers could apply for subsidies, for example, for rooftop solar installations or the acquisition of photovoltaic power plants on land. For these purposes, MONETA provided investment loans for more than CZK 100 million (approx. EUR 4 million), and other projects are still being processed.
Source: the Bank`s press release dated March 15, 2023
