Agribusinesses, aggregators, and food processors will now be able to better respond to market demands and address the management challenges they face when procuring commodities from numerous small-scale suppliers, following a partnership deal between eProd and LendXS, a digital credit service platform of Financial Access.
Through this collaboration, LendXS can integrate its credit processing and credit risk scoring solution into eProd’s supply chain management system. This would enable eprod’s agri sme’s clients to assist their smallholder farmers in obtaining the financing they require to expand and grow their businesses. This collaboration integrates the LendXS and eProd services so agribusinesses can more efficiently manage their transaction data gathered by eProd and use these data to support the mobilization of finance at a reduced risk via LendXS.
“The market is ready for better-integrated credit scorecards that may enable agribusinesses to develop relationships and supply value to smallholder farmers,” says Mr Jan Willem van Casteren, CEO eProd.
Benefits for Farmers
“Agribusinesses frequently act as financiers for their farmers by providing inputs or working capital. The sooner these companies can focus on their core operations and link farmers directly to financial institutions, the sooner they will be able to focus on quality produce as they link into larger, even worldwide markets,” he added.
“The LendXS and eProd partnership will promote more effective agriculture value chain management, help to stabilize markets, and integrate more farmers in the supply chain,” Muthoni Karimi, chief operations officer of LendXS, says. “There is a significant movement toward agribusiness supply chain actors and SMEs assisting smallholder farmers by either providing inputs to the farmers or purchasing directly from them. This reliance is worsened by increased strain on food supply induced by climate change and rising food demand from an expanding global population.”
eProd is a specialized ERP, addressing the supply chain management needs and challenges of agribusinesses, whether small or big, managing different value chains simultaneously.