A Straightforward Approach
The application and approval process for LAAD’s financing is thorough and efficient, yet personalized. It relies heavily on getting to know potential clients and their unique history and goals. Throughout this process, LAAD officials remain keenly aware that although loans are given to businesses, they are first and foremost given to people. Ultimately, it is LAAD’s belief that people, not the numbers nor the project, have the greatest effect on business success or failure.
A potential client contacts a LAAD office or an authorized third party representative and explains the proposed financing needs. The Local Contact meets with the client and visits their farm or facility to verify the financing request and refers the client to LAAD, as applicable.
A basic structure for the loan (interest rate, time frame, collateral) is designed and then negotiated with the client.
A Loan Proposal is prepared and sent for approval based on the client’s financial needs and credit profile.
The loan approval is designed to quickly identify potential issues that will need to be addressed before significant commitments in the time and resources are made by both clients and LAAD.
Once approved by Credit Risk, AML and Environmental Control, the financing is deemed viable and a comprehensive client analysis is completed.
LAAD completes the proposal analysis and the client’s information remains confidential.
If the due diligence is satisfactory, the loan is approved; all the documents are processed and funds are disbursed.
Lending Flexibility
LAAD provides medium and long-term loans and, to a lesser extent, crop financing, to family-owned or managed small and medium-sized businesses. Most loans range from US$200,000 to US$4 million, and emphasis is placed on financing companies that export part or all of their production.
LAAD loans normally fund the purchase of fixed assets for agricultural production and processing, as well as permanent working capital, debt refinancing, and vertical integration.