Hectare has launched Advance Pay, a new embedded finance product that the company claims will give arable farmers access to instant cash flow from their grain contracts at a fair market interest rate.
According the Hectare, the new product will solve the challenges of financing last mile grain supply chains and is the first independent solution without the associated costs or administration requirements of traditional finance, lock-in contracts for grain pools, or input financing.
With Advance Pay on grain trades, farmers receive instant payment for up to 80% of the contract’s value, easing any concerns over trading with new buyers and ensuring timely payments.
The company assures payments will be there on time, freeing growers up to make trading decisions based on market conditions, not cash flow needs. Hectare sees its embedded finance offering as the sweet spot where digital workflows and digital finance go hand in hand. Farmers can seamlessly receive an advance payment on a grain contract while closing a deal with a buyer—all in one simple transaction using Hectare’s digital trading tools.
Vanessa Lenssen, chief product and growth officer at Hectare suggests this announcement comes at a crucial time when farmers are facing financial and climate challenges. “Hectare was created by farmers, for farmers. We wanted to solve the complex puzzle of last mile trade finance for our farming community. We’re proud to break new ground and support our customers in building sustainable financial success for their farming businesses every day.”
