Merkur Development Loans Ltd. offers loans to small and medium-sized businesses (SME) and cooperatives in developing countries that use sustainable production methods.
Examples of loan purposes:
- Production and storage buildings.
- Production plant equipment and machinery.
- Operating equipment, e.g. trucks.
- Working capital in order to finance the final stages of certification, including the purchase of additional equipment, fees, etc.
- Financing tied-up funds in inventory and outstanding claims.
- Purposes connected with renewable energy.
- The size of loans will typically range between EUR 50,000 and EUR 150,000. The maximum for individual loans is at EUR 200,000
- Interest rate: Annual interest rate: 8-12 % for loans in EUR, USD or DKK (interest rate as of January 20, 2010). Interest rates are determined on an individual basis according to an overall assessment of a company's equity, operating profit, historical performance, collateral and specific elements of risk in connection with the proposed investment/business activity.
- Loan Period: Three to five years. For loans involving investments in land and buildings, the loan period may be prolonged to a maximum length of ten years.
- Requirements may be made concerning collateral and asset insurance.
- Up-front fee 2% of loan sum.
As a general rule the interest rate is fixed, but local financing practices and competitive parameters are also taken into consideration.
Merkur Cooperative Bank offers trade credits for, and pre-financing of, production costs related to exports of organic, biodynamic, fair trade and FSC-licensed products to Scandinavian countries.
Read more at www.merkur.dk