How Can Farmers and Agribusinesses Meet the Needs of the Spring Campaign?
"Where to get funds for sowing" is a question that is relevant for agrarians every season, especially now during the ongoing war. Since the beginning of the year, Raiffeisen Bank has increased the volume of lending to agro clients and offers comprehensive solutions to help them continue to grow.
Raiffeisen Bank is one of the largest lenders to the Ukrainian economy, identified by the National Bank as systemically important. It has been a reliable support for Ukrainians and Ukrainian businesses for nearly 20 years. The bank's balanced policy, relevant products, and personalized approach have helped and continue to help our clients remain resilient, with financial opportunities for current activities and investments in growth and development programs.
The resilience and reputation of Raiffeisen Bank itself are confirmed by numerous ratings and financial reliability indicators, including by Moody's. Currently, Raiffeisen is among the leaders among Ukrainian commercial banks financing agricultural producers. Despite the war, which has been ongoing for four years, in 2024, the bank issued loans totaling 8.1 billion UAH to small and micro-business clients. A large portion of these loans have reduced interest rates under partnership programs for investment and working capital purposes.
Since the beginning of 2025, Raiffeisen Bank has expanded its interaction with agrarians, actively lending under the government program "5-7-9." Thanks to the low interest rate, the program helps Ukrainian businesses solve almost all tasks: from replenishing working capital to purchasing equipment, machinery, construction, and launching new production lines. However, lending under this program may not be the only solution, but one of a wide range of financial tools offered by Raiffeisen Bank to meet any business needs. Let's discuss them.
How to Support "Working Capital"?
The characteristic of agricultural business is its pronounced seasonality, which can cause temporary liquidity gaps, working capital shortages, and the need for additional financing during the off-season—such a period is now. Solving this problem is not difficult. Raiffeisen Bank offers several options.
Overdraft is the quickest way to obtain necessary working capital. These funds can be used for operational and business needs: renting premises, purchasing consumables, fuel, feed, raw materials, paying taxes, and payroll. The main advantage of overdraft is that it is provided for a term of three years, with the longest possible continuous "minus" period—up to 180 days. It is generally provided without collateral and requires a minimal set of documents from the client for its receipt. For example, for every credit of 100,000 UAH, the client pays only 45.89 UAH daily, which is less than the cost of a cup of cappuccino 😊. And that is if these funds were not repaid within one operational day. Another example: a client buys fuel for sowing in the morning, and by evening, funds are credited to his account that cover his fuel expenses, then he pays no interest at all.
Online Lending. The bank understands the extremely difficult and risky conditions in which domestic business operates. And this applies not only to enterprises located near combat zones or in communities systematically subjected to shelling. Therefore, entrepreneurs and legal entities can receive funds from Raiffeisen in the amount of up to 1.5 million UAH without collateral and additional visits to the bank, with a decision made within a few hours. Clients with a pre-approved decision can sign a loan agreement in the Raiffeisen Business Online personal cabinet and receive funds in their current account—in just a few minutes. Financing is provided for any purpose. Last year, Raiffeisen issued 1,190 such online loans totaling 619.1 million UAH.
Financing Current Activities in the form of a revolving or non-revolving credit line solves more fundamental tasks related to working capital—during the off-season and cash gaps, it can be used to pay salaries, taxes, rent, current repairs, purchase raw materials or materials to expand the business. During the spring campaign, a credit line will be appropriate for purchasing fuel and lubricants, seeds, plant care products, paying for goods or services, and other current needs related to business operations. Collateral can include real estate, equipment, transport, machinery, etc. However, the possibilities of this product are broader—Raiffeisen is ready to provide financing up to 72.7 million UAH for a period of up to 18 months. A credit line without collateral can be obtained in the amount of up to 9.5 million UAH.
How to Profitably Purchase Equipment and Machinery?
Reliable, modern, innovative machinery in agribusiness is one of the main success factors, along with the quality of seed material and care products, as well as the weather factor, which can only be mitigated by providing additional irrigation. It is quite difficult to assemble and maintain the necessary equipment fund in proper condition. Meanwhile, many farms and farmers in southern and eastern Ukraine have suffered and continue to suffer from enemy actions. High-cost machinery is still being blown up by mines, targeted by drones, elevators, fleets, and productions are subjected to rocket attacks. Under such conditions, agribusiness needs even more opportunities to update its production assets.
Investment Loan for the purchase of equipment/machinery/vehicles has a loan term of up to 5 years. Therefore, if you need to purchase fixed assets, it is worth considering this financing option. Moreover, you can buy not only any necessary machinery, trucks, and passenger cars, production equipment, and machinery, but also real estate—premises for production, office, etc. Such a loan is provided quite quickly, covering, in essence, any technical needs—up to 68.5 million UAH. With the help of an investment loan, you can purchase any machinery. Depending on the volumes and needs of the business, clients can choose from various types of tractors/combines/plows/seeders/other equipment for agriculture, and not only for agro.
Raiffeisen Bank Partnership Programs
Raiffeisen Bank has been cooperating for many years with leading manufacturers and distributors of agricultural machinery and equipment, such as John Deere, Claas, AGCO, Lemken, Amazone, Kuhn. The bank also offers a wide range of partnership programs with the largest global manufacturers of seeds, plant protection products, fertilizers. Currently, Raiffeisen has more than 60 partnership programs for clients, offering a variety of choices depending on business needs. Manufacturers can obtain tractors, combines, seeders, trailer equipment, commercial transport on favorable terms. Does agribusiness need to build/modernize elevator facilities? Raiffeisen Bank offers partnership programs in this direction as well. The agro sector urgently needs irrigation equipment—as prolonged droughts as a sign of climate change become an increasing problem every year, not only in southern regions. Raiffeisen has profitable financing offers here as well. Thus, Raiffeisen Bank's partnership programs are always about win-win, benefiting all parties.
The conditions of each partnership program are special, but generally, financing can be discussed for a term of 1 to 5 years at a rate from 0.01%. And for bill avalization within the "partnership," the agrarian pays only 1% commission, which is very comfortable conditions.
Where to Get Funds to Purchase Seeds and Plant Protection Products?
This is again about partnership programs. Sometimes you need it quickly, sometimes urgently, sometimes without collateral, sometimes for a short term, but cheaper. Raiffeisen has developed many solution options for its clients. You can obtain planting material, seeds, fertilizers, and everything else necessary for agriculture from Bayer, Monsanto, Syngenta, Corteva, Basf, Summit Agro, Limagrein, Lidea, etc., on comfortable and favorable terms. If funds are needed for a short period, Raiffeisen Bank offers programs jointly with a large list of suppliers: you can solve the task almost for free—from 0.01% per annum. So, choosing a comfortable option is possible for every area of agribusiness.
Bank-Avaled Bill. The bank guarantees the client's payment to the seller for the supplied goods. A bill is a clear, convenient, and cheap format of payment deferral. The bill fixes the price in UAH, protecting the client from inflation and currency fluctuations, has a long maturity of up to 12 months. A bill as a financing tool can provide improved conditions and generally become more advantageous than a commodity or classic loan. Raiffeisen Bank is a leader in Ukraine for bill avalization for agribusiness. Last year, the bank provided bill financing to agrarians totaling over 2 billion UAH.
When time is of the essence, using bills can be the quickest solution. From "submitted an application" to "sowed" can take just one day. Under the bill, you can purchase seeds, plant protection products, fuel, even specialized, spare parts, or equipment. It can also be used to guarantee deferred payment for works and services. It can be used for importing certain types of goods, fuel, paying excise duties, etc., into Ukraine.
How to Achieve Energy Independence?
Energy Efficiency Financing Program. In today's realities, everyone wants to ensure uninterrupted production or office work, maintain proper climate conditions at elevators, farms, and greenhouses. Client needs range from a 10 kW charging station to a 1000 kW solar power plant. Most often, Raiffeisen is approached for financing specifically for generators, powerful charging stations, solar panels, cogeneration units. Energy-saving projects are in high demand.
Special needs are addressed with targeted solutions. You can obtain an unsecured loan for solar panels up to 9.5 million UAH for a term of two years. Or up to 72.7 million UAH with collateral for a term of up to three years. With these funds, you can build a solar power plant, your own biogas or gas turbine station, a small wind power plant, conduct energy modernization of a production line. Raiffeisen Bank offers clients individual financing terms with a term of up to 5-7 years and a personal contribution from 0% of the project cost.
The difference between "energy lending" and other types of investment loans is in additional "bonuses." For example, Raiffeisen can provide financing for investment purposes with the possibility of receiving cashback up to 10% of the loan amount. A deferral on the repayment of the loan principal is possible for up to 6 months or until the commissioning of the financed object. The interest rate and repayment terms can be individual. There are interesting partnership projects, including with the supplier of electricity, gas, and energy-efficient solutions YASNO, with Rayton Sun, a leader in Ukraine in building solar power plants and providing energy-efficient solutions.
Thus, with comprehensive service at agribusiness-oriented Raiffeisen Bank, you will always receive financing that is most appropriate and beneficial for your company.
