International Factoring for the agricultural industry

One of the most important sectors in food production is the agricultural sector. In Colombia, thanks to the great territorial possibilities, its more than 40 million potential hectares to cultivate, the variety of thermal floors and the favorable climatic and environmental conditions, the agricultural industry is cardinal for the economic development of the country. However, in recent decades, major changes have led the sector’s entrepreneurs to take on numerous challenges when it comes to financing their businesses. The high demand of a growing population, the increase of modern sustainability concepts, the competitive pressure of automation processes and the high acquisition costs of modern agricultural technology, as well as long payment terms, make Factoring an intelligent and flexible financing concept for agricultural companies to remain competitive.

How can agricultural companies be prepared with International Factoring?

Mutuo Capital, specialist in International Factoring, knows the challenges of the agricultural sector and provides fast liquidity, real added value and remarkable relief. Currently, large companies in the sector, such as Nitrofert, access International Factoring because it facilitates and speeds up the payment to their suppliers, improving the growth of their business.

Let’s talk about our International Factoring client

“In 2018, Nitrofert, after analyzing the competitive advantages and recognizing Colombia as a market with great potential for development at regional and global level, due to its climatic and geographical conditions and water resources, coupled with its extensive experience in the agro-industrial sector, begins its operations with a process of evaluation and understanding of the requirements of the agricultural market in the fertilizer and plant nutrition sector, to begin the process of obtaining certifications as an importer and producer of fertilizers. As part of this evaluation, it was possible to identify more than six products with export quality, such as coffee, which has a high added value due to its high quality, as well as its derivative products; bananas; and crude palm oil, which is attractive to the markets because it is grown in soils where there has been no history of deforestation. Colombia became the epicenter of Nitrofert’s investment decision to bet on the growth of the country and the development of agriculture, due to its commercial interaction, its great stability in the global market and the environmental factors mentioned above, in a global context of high fertilizer prices”.

For Nitrofert, the goal is for Colombia to be the “great food pantry of the world, technified and digital, responding to the high demands of the global market”. To meet this goal, Mutuo Capital has provided the International Factoring tool, providing immediate financial security and liquidity solutions for its accounts receivable, improving the structure of its balance sheet. In this way, Nitrofert can concentrate on its success and growth, which has allowed it to carry out future-oriented balance sheet planning, gaining entrepreneurial freedom of action.

Thus, having a financing tool that gives it solidity, efficiency and optimization of working capital, Nitrofert can fulfill its objective and affirm: “Believing and betting on the future of Colombia, Nitrofert will deploy all its technical, financial and human resources, so that these FAO projections become a reality in the area where our capabilities can supply all its needs, and the country manages to become one of the main food pantries in the world”.