CHEFF offers financial products at competitive rates similar to the products offered by commercial banks.
The difference however lies in the fact that CHEFF focuses only on the emerging farmer, that our processes (relationship management, credit and administrative) are developed to support the emerging farmer, that our products are tailor made for the agriculture needs of the emerging farmer and that we approach risk relating to agriculture in a manner that commercial banks simply cannot do.
Term loans with repayment terms of up to 15 years for financing of farmland, immovable assets and expansions / improvements to such property (e.g. vineyard and orchard plantings) are available. Term loans are structured in innovative ways to match the repayment ability of the underlying asset with the cash flow generated by that asset.
Term LoansView Product
Revolving Credit Facility
CHEFF does not have cheque-clearing facilities and can thus not offer overdraft facilities. As an alternative CHEFF offers a revolving credit facility which operates similar to an overdraft. A facility is made available in accordance with the client's cash flow needs (which replace the client's overdraft held at a commercial bank) and is reviewed on an annual basis. Funds are then transferred by CHEFF upon request by the client to the cheque account of that client (available within 24 hours) and funds can also be deposited in the revolving credit account as and when surplus cash is available.
CHEFF Production Finance
This is a product well suited for export fruit farmers where farmland cannot be offered as security. Production finance is made available in accordance with the cash flow needs against a cession of the harvest as main security – no tangible security such as bonds are required. This is a unique financing facility that deviates from the traditional working of production facilities and is not offered by the commercial banks.
Grain Input Finance Facility (GIFF)
The GIFF is similar to the CHEFF production finance and offers production finance for grain farmers against a cession of the harvest and input insurance as security. This product is well suited for farmers in higher risk areas and as is the case with the CHEFF production finance product, the farmer's tangible assets are not bound as security to obtain the production finance.