Agrozentr is engaged in successful cooperation with AGCO Finance, a leasing company that always offers special leasing conditions for AGCO machinery. The latest one is expedited leasing application processing.
According to Yulia Shubina, Financial director of AgroZentr, it takes one day to make a preliminary decision and from three to ten days to execute an application and prepare the required agreements.
‘Many agricultural producers use AGCO Finance’s leasing program’, says Yulia Shubina, ‘This allows them to buy machinery manufactured by Challenger, Massey Ferguson, and Fendt on beneficial terms’.
The appreciation rate under each leasing offer is calculated with the consideration of a number of factors: advance payment amount, leasing period, repayment schedule. Besides standard offers, there are also special discounts for certain categories of AGCO machinery that allow reducing the average annual appreciation rate by 2-4%. Yulia Shubina specified that a 2-4% annual appreciation is only possible for foreign currency leasing offers. If the financing is provided in rubles, – with a subsidy from AGCO, – the annual appreciation amounts to 5-9% depending on the advance payment and the leasing period.
Maximum financing amount for the projects qualifying for expedited application processing is 15 mio rubles with a leasing period of up to 60 months.
To apply for expedited processing, the client is to provide a standard set of documents which includes the lessee’s questionnaire, the accounting statements for the latest periods and – for small-scale farmers – an income tax return. The lessee’s questionnaire shall include the key production parameters of the agricultural enterprise, such as cultivated area, crop yield and information on livestock farming performed by the enterprise.
The data on the size of legally owned or rented land is also taken into account.
AGCO Finance specialists are constantly working on reduction of processing time by improving the internal processing mechanisms and simplifying the requirements to the set of documents necessary for preparation of agreements.
‘We have achieved considerable results in this area within the last couple of months – the application processing rate has increased by 30-40%’, says Yevgeny Astashkin, Commercial Director of AGCO Finance in Russia. ‘We are trying to create the most comfortable leasing conditions for our clients’.