Strategic behavior of nontraditional lenders in agricultural credit markets

IF 1.5 Q3 AGRICULTURAL ECONOMICS & POLICY Agricultural Finance Review Pub Date : 2021-12-02 DOI:10.1108/afr-06-2021-0074
Iuliia Tetteh, M. Boehlje, A. Giri, Sankalp Sharma
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引用次数: 2

Abstract

PurposeThis paper examines credit products, operational performance and business models employed by nontraditional lenders (NTLs) in agricultural credit markets.Design/methodology/approachTwo research methods were employed in this study: (1) an executive interview to collect primary data and (2) a case study approach to analyze the findings and develop insights.FindingsThe findings indicate the presence of significant differences among lenders across and within three categories of NTLs (large volume, vendor financing and collateral-based NTLs). For example, collateral-based NTLs employ different strategies focusing on types of loans, funding sources, commodities they support and geographic coverage to further segment the market. NTLs in this study were able to capture market by successfully identifying gaps in the supply side of agricultural credit and developing products that meet the needs of that niche (e.g. heavy renters, large operations, producers seeking fixed interest rates for term loans, financially fragile producers). Most of the interviewed NTLs had credit standards comparable to those of traditional lenders and consider them both competitors and partners since many NTLs partner with traditional lenders on participation loans, loan servicing and/or sourcing funds.Originality/valueThe supply side of a nontraditional lending has not been studied extensively due to the proprietary nature of data. The executive interviews conducted in this study allowed for accumulation of industry data, which is not available otherwise.
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农业信贷市场中非传统贷款人的战略行为
目的研究非传统贷款人在农业信贷市场中使用的信贷产品、经营业绩和商业模式。设计/方法/方法本研究采用了两种研究方法:(1)高管访谈以收集主要数据;(2)案例研究方法以分析研究结果并形成见解。调查结果表明,在三类NTL(大额、供应商融资和基于抵押品的NTL)中,贷款人之间存在显著差异。例如,基于抵押品的NTL采用不同的策略,重点关注贷款类型、资金来源、支持的商品和地理覆盖范围,以进一步细分市场。本研究中的NTL能够通过成功识别农业信贷供应方面的缺口并开发满足该利基市场需求的产品(例如,大量租房者、大型经营、寻求定期贷款固定利率的生产商、财务脆弱的生产商)来占领市场。大多数受访NTL的信贷标准与传统贷款人的信贷标准相当,并将其视为竞争对手和合作伙伴,因为许多NTL在参与贷款、贷款服务和/或资金来源方面与传统贷款人合作。独创性/价值由于数据的所有权性质,非传统贷款的供应方尚未得到广泛研究。本研究中进行的高管访谈允许积累行业数据,而这在其他方面是不可用的。
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来源期刊
Agricultural Finance Review
Agricultural Finance Review AGRICULTURAL ECONOMICS & POLICY-
CiteScore
3.70
自引率
18.80%
发文量
24
期刊介绍: Agricultural Finance Review provides a rigorous forum for the publication of theory and empirical work related solely to issues in agricultural and agribusiness finance. Contributions come from academic and industry experts across the world and address a wide range of topics including: Agricultural finance, Agricultural policy related to agricultural finance and risk issues, Agricultural lending and credit issues, Farm credit, Businesses and financial risks affecting agriculture and agribusiness, Agricultural policies affecting farm or agribusiness risks and profitability, Risk management strategies including the use of futures and options, Rural credit in developing economies, Microfinance and microcredit applied to agriculture and rural development, Financial efficiency, Agriculture insurance and reinsurance. Agricultural Finance Review is committed to research addressing (1) factors affecting or influencing the financing of agriculture and agribusiness in both developed and developing nations; (2) the broadest aspect of risk assessment and risk management strategies affecting agriculture; and (3) government policies affecting farm profitability, liquidity, and access to credit.
期刊最新文献
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