ELANA Agrocredit collects 91% of 2016 receivables due by end of September
The land leasing company ELANA Agrocredit collected 91% of the annual lease payments due in 2016 by the end of September, the Company announced in its regular monthly bulletin. It provides loans to farmers for arable land acquisition with the land as a collateral. Payments are structured according to the agricultural year a.k.a all annual installments are due from Sept. 15th until Oct. 15th.
99%+ collection is expected
By the end of Sept. 2016, ELANA Agrocredit has collected BGN 4.3m in installments which is 91.3% of all due receivables. These are payments from 241 of 264 clients most of the other 23 clients paying partially by the end of the month. If a client fails to pay, ELANA Agrocredit can sell the land used as a collateral. The company expects to achieve 99%+ of total installments to be paid on time.
In FY2015, the Company collected 99.75% of payments due and sold the land of one client thus delivering more than 100% execution for FY2015. All lessee are required to do a 20% down payment thus giving the company a 20% price bufferin case of default and need for the land to be liquidated to recover the receivable.
Investments in farmland
Since inception in 2013, ELANA Agrocredit has financed the acquisition of land worth BGN 42.3m and has extended working capital loans to farmers totaling BGN 4m.
Also, in September 2016, ELANA Agrocredit signed an agreement with EBRD for a new EUR 5 mln. loan.