International non-governmental organization Mercy Corps
In June 2012, Alliance Group Leasing started cooperation with International non-governmental organization Mercy Corps. According to the MOU signed by parties, International organization will grant a down payment of 25-55% for leasing asset to farmers involved in livestock production, the rest will be financed through AGL leasing services. Farmers are able to receive easy financing from AGL and are required to pay only market value of the equipment. The mentioned initiative enables farmers to receive necessary equipment with only minimum down payment.
Within this initiative, Alliance Group Leasing signed a MOU with agricultural equipment distributor company Ltd Bolnisi Agrotechnics. According to MOU, clients at Bolnisi Agro are able to participate in the project and receive the leasing services. Ltd Bolnisi Agro is a Lithuanian-Georgian company, established in 2009 which specializes on agricultural equipments and provides its customers with modern agricultural machinery and spare parts.
From April, 2013, the cooperation between Alliance Group Leasing and Mercy Corps has extended to Tsalka region. The number of supplies has expended as well. Nowadays, any farmer engaged in livestock production that will comply with project requirements, can choose the necessary equipment and receive co-financing from non-governmental organization for leasing services.
On July 13th, 2011, the United States Agency for International Development (USAID) signed an agreement with Alliance Group Leasing under which, for the first time in Georgia, a leasing company was granted a Development Credit Authority (DCA) Guarantee issued by the US Government.
The USAID Guarantee will support borrowings of USD 2,500,000 by Alliance Group Leasing so that the company can expand its leasing portfolios in the micro and SME sectors.
The aim of the agreement is to focus on household farming and re-equipment of micro enterprises. As a result, small and medium companies will be able to use alternative form of financing, such as leasing and not be relied on attracting financing only from commercial banks. Leasing represents an accessible, alternative form of financing which enables the companies to re-equip their fixed assets on attractive terms. The financing does not require any additional collateral. Its main advantage is the fact that leasing company assists the clients to find necessary equipments, supports in documentation and logistics, provides flexible payment options, and possibility to renew or change the assets. The leasing legislation also facilitates reduction of tax costs.
The agreement will help Alliance Group Leasing to contribute to the development of micro, small and medium enterprises. The initiative will also facilitate to increase awareness about leasing services in the regions.