CredAgro's management team has worked together for over two years and the organizations track record demonstrates that they have the necessary skills and motivation to guide the company as it pursues its mission and, in the future, expands to other areas of Azerbaijan. The management team is supported by financial and technical services volunteers and consultants provided by ACDI/VOCA.
Azerbaijan's lending market in agriculture is underserved by the country's formal commercial lending sector, but this market is growing at a significant rate as the country develops its domestic agricultural and export economy. We estimate that, after two years of lending services, CredAgro has serviced less than 2 percent of the available target market.
CredAgro's customers are primarily rural individuals who are not in an economic position to secure credit from Azerbaijans formal financial institutions. The majority are small-scale agricultural producers, agri-business owners and rural entrepreneurs. CredAgro has a strong lending history in the areas of vegetable and fruit production, livestock breeding and the processing of agricultural products.
At present, CredAgro offers a single loan product to its borrowers; namely, a term loan that is disbursed in one tranche with interest at 18 percent for farm production loans and 25 percent for business or trade loans. The principal is typically repaid within 18 months or less in installments that have been agreed to before disbursement.
At this time, CredAgro has few competitors offering a similar service in its market niche. This advantage has allowed the organization to focus on providing exceptional customer service and developing customer confidence in the lending process and loyalty to the organization.
CredAgro's marketing strategy has so far been based on word-of-mouth promotion that provides walk-in traffic at its branch offices. The social structure and business culture in the small farming communities of Azerbaijan have proven this strategy to be successful and inexpensive.
