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The huge experience in the agribusiness sector of Banco Votorantim is evidenced by the innovative solutions to harvest finance that the bank offers, such as Rural Products Credit Bill (CPR).
The CPR is a credit bill issued by farmers, farm associations or farmers cooperatives, essentially enabling a future sale of the harvest to obtain working capital. CPRs are traded under organized financial market. The advantages include tax efficiency for newly issued bonds and facilitation of cash forward contracts for crop and livestock production.
The advantages include cost efficiency for new credit bills issuances and easier anticipate future contracts for crop and livestock production.
There are two types of CPR
Physical CPR: the farmer (issuer) receives cash when the bond is issued and must deliver an agreed amount of goods at an agreed location and date.
Financial CPR: the producer (issuer) receives cash or inputs and settles in cash for a fixed price based on volume of goods.
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Loans and Financing
