BOOSTING ACCESS TO BANK CREDIT VIA MUTUAL GUARANTEEMENT FOR AGRICULTURAL SMEs.

BOOSTING ACCESS TO BANK CREDIT VIA MUTUAL GUARANTEEMENT FOR AGRICULTURAL SMEs.

When an agricultural SME requests a bank loan, the financial institution naturally seeks to share the risk and secure repayment of the loan.

For this, he can use the services of a mutual guarantee company (SCM). A mutual guarantee company is a credit institution specializing in granting guarantees for loans taken out by its members.

Its purpose is mainly to facilitate entrepreneurs’ access to bank credit (and its maintenance) by pooling risks.

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