The farmer always dreams of new modern technology. Whatever the road, it is a good investment in the agricultural business. Where to get money for modernization without resorting to onerous loans and without withdrawing funds from circulation?
Leasing comes to the rescue. “Real financial support for your business” is a special project of Agravery.com and ESKA Capital about new opportunities for farmers. In this issue we will talk about the case of financing state agricultural colleges. ESKA Capital finances not only private business, but also educational institutions. The leasing company supports the development of education, because it is an important contribution for future generations.
Illinetsky State Agrarian College, located in Vinnytsia region, is an example of successful use of leasing by a state educational institution. We talked to the director of the Agricultural College – Vasyl Pindus, who told about the real financing from the leasing company ESKA Capital.
The institution has been established since 1921 and its main advantage over universities is that up to 40% of the time spent in the institution the student spends on the basis of practice. The predominant number of specialties of the educational institution is provided by the following branches: agricultural sciences and food, production and technologies and management and administration.
These specialties require the use of not only theory but also practical skills. Accordingly, practical skills require equipment that the state is not always able to finance.
The use of technology in educational institutions – has always been, but today – is a new level of use of modern technology, as business does not stand still, and agricultural business is developing, so it is necessary to teach and adapt students to advanced technologies. College student studies all technological processes: from soil preparation, sowing, crop care and to harvesting. All classes are conducted using special equipment in the field.
During the educational process, the student has the opportunity to learn everything: what is the depth of seed wrapping, how many seeds should fall per running meter, and how many per hectare.
The main problem of public educational institutions is the lack of funding. And despite the fact that the Ministry of Education has increased investments 5 times in 2020 and allocated UAH 259 million for training and practice centers, currently the state cannot afford to withhold college loans.
That’s why leasing comes to the rescue. “This is a very good form of lending, including for educational institutions, because it is quite difficult for a budgetary institution to get a bank loan, and working on leasing is such a rule of law and we use it. Leasing is our salvation and, by the way, it is very profitable! I am very grateful to ESKA Capital for funding our college! ”Says the director.
Cooperation between ESKA Capital and Ilyinets State Agrarian College began in 2008, during which time the college has purchased 18 units of equipment: drills, sprayers, tractors, compact, dryer, reversible plow, car and much more. About 80% of all college equipment is purchased through ESKA Capital. Favorable leasing conditions ensure the successful operation of the educational institution, so the college has the opportunity to replenish its technology park 1-2 times a year with the required unit of equipment.
“We pay 16% per annum, and we receive the equipment on hand from the beginning, we pay 30% of its cost and all, we pay the balance within the specified period (3 years). The important thing is that we have the equipment for these three years and we operate it and pay for it at the same time, ”says Vasyl Pindus. But the equipment is used not only for students’ practical skills, but also for growing cereals for sale. funds, the proceeds go to support the activities of the college. The technical school has about 800 hectares of land that need to be cultivated, cared for and grown cereals, and for the direction of animal husbandry it is necessary to grow fodder.
“Thanks to ESKA Capital, we have the opportunity to show and teach students quality equipment and this will help graduates in the future to choose good equipment for their business. And we advise to use leasing as a profitable financing for business, because unfortunately you can’t always count on the state, ”says the director of the college.
Most of the graduates are children of farmers who have been running their family business for several generations. Therefore, they choose to study at the Agricultural College, in order to acquire practical skills and quality education. After gaining experience in the technical school, college graduates create their own farms and run their own business, mostly graduates create farms on the basis of relatives’ shares. And their business requires the use of special equipment. Currently, the biggest goal of the college is to purchase a combine!
“We want to buy a high-quality modern combine to ensure that we harvest legumes and industrial crops,” said Vasyl Pindus. Ilyinets State College plans to expand its fleet of equipment, because the number of specialties is growing and students must have practice in new, high-quality equipment!
Every year the educational institution replenishes its fleet of equipment thanks to ESKA Capital. This year, the college purchased a livestock feed mixer, a seeder and a grain dryer. Therefore, if the state cannot lend to your business, there is always real financing from the leasing company ESKA Capital.