Credit Facility Research Articles

Assessment of Socio-Economic Determinants of Maize Production among Smallholder Farmers in Nassarawa State, Nigeria

The study focused on assessment of socioeconomic determinants of maize production among smallholder farmers in Nasarawa State. A multistage sampling technique was used for the selection of 171 small holder farmers for the study. A well-structured questionnaire containing both open and closed ended questions was used to collect the data for the study descriptive statistics such as percentage and frequencies and multiple regression analysis were used to achieve the objectives of the study. The socioeconomic result of the smallholder maize farmers in showed that the majority (36.3%) of the farmers were within the age range of 31-40 years of age and were mostly 76.6%) male farmers with the majority married and literate. Also, a greater number (66.1%) were members of association, 71.3% had farming experience between the range of 16-20 years with household size of 4-6, cultivating average farm size of 2-3 acres, had good contact with extension agents though only 4.1% had access to credit facility. The result of the multiple regression analysis showed that farm size, educational status and household size have positive significant effect on the output of maize at 1% and 10% level of significance respectively. The maize production technologies adopted by the majority (88.4%) of the farmers were herbicides and improved variety while the major constraints were high cost of labour, high cost of inputs and poor credit facility. The federal Government should create an enabling environment that guarantees available farmland to farmers since farm size is a critical determinant to maize production.

Adaptable solutions for retail supply chain resilience in the post-COVID-19 era

Faced with globalization and unpredictable disruptions, firms aspire to achieve resilience and sustainable recovery of their supply chain (SC) networks. However, Nigerian retail firms are faced with challenges that deter resilience in their SCs under disruptions, and to date, literature is currently non-existent that analyzes these challenges and proposes strategies for their mitigation. This study, therefore aims to identify and analyze the degree of significance of the challenges to SC resilience in Nigerian retail firms under disruptions, as well as propose strategies to mitigate them for enhancing retail SC resilience under potential disruption risks in the post COVID-19 era. Nineteen challenges were identified and categorized into three contexts namely operational-level, macro-level and internal-level. Then, a methodology based on integrating decision-making trial and evaluation laboratory with the Shannon entropy concept and simple additive weighting was proposed to aid in the study analysis. Results indicate that the operational-level context is most significant and ranks highest in deterring SC resilience in Nigerian retail firms under disruptions. Specifically, 'limited credit facility' is the highest ranked challenge, followed by 'lack of Omni channel fulfilment capabilities', 'delivery irregularities', ‘workers’ high welfare package’ and 'lack of supplier collaboration’. Besides, 'incentivisation' mitigates these challenges the most and is strongest linked to build retail SC resilience, followed by 'digitalization' and ‘SC localisation'. Implications are highlighted from the results for retail SC resilience in the post-COVID-19 era.

On the empirical nexus of agricultural credit facility scheme and agricultural output dynamics in Uganda

The role of the agricultural sector in economic growth cannot be overemphasized. Agriculture is basically one of the key sub-sectors that enhance economic growth in all economies of the world. Since no sector of the economy can grow without enough capital, agricultural credit is considered as imperative for improved agricultural output. To contribute to knowledge in this regard, this study examined the impact of agricultural credit fund (ACF) on agricultural output in Uganda using quarterly data from 2009 to 2021. By employing the Autoregressive Distributed Lag (ARDL) framework, the results revealed that ACF has no significant effect on agricultural output in Uganda in the short run, but it significantly has positive effect on the sector in the long run. We control for economic growth, proxied by gross domestic product (GDP), interest, inflation, and exchange rates and find that exiting level of GDP, spurred agricultural output, while the rate of interest and inflation retard agricultural productivity (output), especially in the long run in Uganda. We recommend that the government of Uganda needs to increase agricultural financing through the credit facility scheme for further productivity of the sector.

Optimal ordering strategy for deteriorating items with maximum lifetime using trade credit financing under imprecise environments

In many business scenarios, a retailer is permitted specific credit period to pay back for the products bought earlier. This facility enables retailers to continue their business operations even when they are unable to raise funds or secure a business loan. To boost the market's demand, promotional effort is a very effective business strategy to the retailer for maximizing the profit. On the other hand, a sudden and significant rise in customer demand for an inventory leads to shortages. Moreover, inventory relevant unit cost coefficients become imprecise due to insufficient data, human error etc. Nowadays, neutrosophic set quantifies the impreciseness more realistically. Considering these facts, an imprecise EOQ model for deteriorating items with maximum lifetime is formulated under trade credit facility. In addition, this article allows shortages, which are linearly time-dependent partially back-logged. Here, the unit cost coefficients are expressed as single-valued trapezoidal neutrosophic numbers. Furthermore, particular models are derived under different environments - intuitionistic, fuzzy, and crisp. Step-by-step solution procedures are suggested for all models to obtain optimal solutions. Models are numerically illustrated with real-life data, and some sensitivity analyses are performed. Managerial insights demonstrate that depletion time always depends on demand. Again, the present study suggests to reduce demand by halting the promotional activities during the shortage period and choose products with a larger lifetime.

Impact of SEEFOR-Fadama Project on Poverty Alleviation of Rural Women of Rivers State Nigeria

This study assessed the impact of the SEEFOR project on the poverty alleviation of indigenous women of Rivers State, Nigeria. The socio-economic characteristics of the rural women were described, impact of the project on assets ownership and income of women were assessed and the effect of the project on the rural women’s socio-economic status was determined. A null hypothesis stating that, there is no significant difference in the income of the rural women before and after participating in the project was tested. A multi-stage sampling procedure was employed for data collection. Structured questionnaire was used to collect data from 238 rural women. Both descriptive and inferential statistics were used to analyze the data collected. Results showed that a majority (79%) of the women were farmers, had small enterprises (72.7%), had 11 years of experience, 74% used leased land for business, only 5% had access to a credit facility, all (100%) were members of a cooperative society, 64.7% were co-contributors with husband for family upkeep. There was a positive 48.3% and 44.5% increment in the number of women who owned assets such as a good house and television after the project respectively. It was found that there was a 72.35% increase in the mean monthly income of rural women. Generally, the project improved the living condition of the rural women. The perceived effects of the project on women’s socio-economic status were; increased decision-making power at home (3.88) and improvement in the contribution of children’s education/community development (3.87). The study concludes, that the project has relatively reduced the poverty of rural women in the study area as there was a significant increment (72.35%) in the monthly income of the women. It was recommended that policies should be put in place to enhance women’s access to credit facilities and that more projects designed at alleviating poverty in Rivers State should target rural women

Perception of Agricultural Input Dealers and Challenges Faced by them in Selling Kitchen Garden Pouch in Anand District of Gujarat, India

Micronutrient deficiencies are a significant issue in countries like India, impairing physical and cognitive development. Therefore, overcoming this requires effective and efficient strategies that use available resources and have long term benefits are needed. Kitchen gardening, a traditional practice, is gaining popular as a solution. Kitchen garden seed pouches simplify gardening, promoting self-sufficiency and sustainability, even in limited spaces. These pouches contain quality seeds of popular vegetables and herbs. This study was conducted with three objectives, to study profile of agricultural input dealers, their perception regarding kitchen garden pouch and identify challenges faced by them for selling kitchen garden pouch. It was conducted from January 15th to April 16th 2024 in Anand district of Gujarat and 120 agricultural input dealers were surveyed with the help of semi-structured schedule. Non-Probability sampling method and Convenience sampling was used. Statistical tool like percentage and henry garret ranking methods were used. It reveals that the majority of dealers are middle-aged, with significant experience in the field. Educational qualifications vary, but a significant proportion holds qualifications equivalent to Diploma. The majority operate as retailers, predominantly in urban areas, specializing in seeds and agrochemicals. Despite a high level of awareness about kitchen garden pouches among dealers, a considerable percentage were not actively sold this product. Consumer demand and product quality were key factors influence the dealers’ decision. Challenges faced during product ordering include credit facility and product replacement concerns, challenges at the time of selling product were customer debit behaviour and product price sensitivity.

The Dilemmatic of the Absence of a Notary’s Deed in an Individual Company after the Enactment of the Job Creation Law as a Form of Legal Certainty

The existence of an Individual Company, which aims to ease abbreviate by reducing or simplifying the rules, raises a dilemma in its regulation which shifts the meaning of a company as a legal entity. The method used is normative legal research, with the legal approach used is conceptual and statutory approach. The existence of an Individual Company as a legal entity that can be recognized as a legal subject is only passed with a Statement of Establishment of an Individual Company and registered to the Ministry of Law and Human Rights based on the Job Creation Law. The convenience found was only based on an economic point of view. Practically speaking, there are more hazards in the society. As an example, the Individual Company credit facility, which is hesitant to be granted by the bank as the creditor because it is still categorized as individual credit. Although it has the status of a legal entity, its establishment by one person and without a Notary may not ensure certainty for all parties in the Individual Company.

Analysis of Product Sales on Credit at NR Beauty Care in Lemahabang Sub-District

This research is a study on the Analysis of Product Sales on Credit at NR Beauty Care in Lemahabang District. This study aims to determine how product sales on credit at NR Beauty Care and analyze how product sales on credit can increase revenue. The method used in this research is qualitative. The results of this study indicate that product sales on credit are given to NR Beauty Care customers who have joined for at least 3 months. The credit facility given to customers still refers to the terms of credit sales that apply at NR Beauty Care by checking in advance about the character of the customer, the activeness of the customer in buying products at NR Beauty Care, and customers who are loyal to NR Beauty Care. NR Beauty Care takes a profit of 2-3% from each product. Based on the results and discussion that has been stated in this article that credit sales aim to help customers, especially reseller customers, to develop their business. If credit is channeled for business development or opening a new business, it will increase their income as well as reduce unemployment. The difference in revenue from credit and cash sales each month reaches Rp. 82,127,000, so selling products on credit at NR Beauty Care is effective for increasing revenue. The results of this study are used as input for NR Beauty Care owners in selling products on credit appropriately, making commitments with customers to avoid late payments and creating good relationships with customers. In addition, to increase revenue NR Beauty Care owners can utilize other E-commerce promotional media.

ECONOMIC IMPACT EVALUATION AND FACTORS AFFECTING THE DECISION OF FARMERS FOR ADOPTION OF GAR-13 VARIETY OF RICE

The study highlighted the economic impact of technology of GAR-13 variety and local variety of rice grown by the farmers in the study area. The analysis was carried out by collecting the primary data on the various economic aspects considering 60 GAR-13 respondents and 60 local variety respondents. The results evident that per hectare higher gross and net income earned by the farmers of GAR-13 as compared to the farmers cultivated local variety of rice. Moreover, the yield and price obtained from GAR-13 was significantly higher as compared to the local variety. Further, the contribution of technology was about 15.87 per cent and the difference due to input use level was about 4.71 per cent which together contributed to the total productivity difference of about 19.57 per cent. Probability of the farmer's decision in adoption of GAR-13 was positive and significantly influenced by education level, farm size, credit facility and income.

The Impact of the Commercial Agriculture Credit Scheme (CACS) on the Agricultural Economy of Nigeria and its Total Output (2015-2019)

This study analyzed the impact of the Commercial Agriculture Credit Scheme (CACS) on the agricultural economy of Nigeria and its total output from 2015 to 2019, using quarterly data. Secondary data were obtained from the Central Bank of Nigeria (CBN) Annual Reports, the Federal Ministry of Agriculture and Rural Development (FMA & RD), and the National Bureau of Statistics (NBS). The study applied the Ordinary Least Square Multiple Regression Model for statistical analysis and used the National Gross Domestic Product (NGDP) and Agricultural Output (AGO) as dependent variables, while Commercial Agriculture Credit Facility Loan to Agriculture (CAL), Money Supply (M2), Unemployment rate (U) and Government Expenditure (G) were used as independent variables. Empirical findings show that there is no statistically significant relationship between CAL, M2, unemployment rate, government expenditure, and NGDP. Similarly, we did not establish a statistically significant relationship between CAL, M2, unemployment rate, government expenditure, and AGO. Overall, the evidence indicates that the desired impact of the Commercial Agriculture Credit Scheme in Nigeria is not being achieved. Arising from the above, we recommend that policymakers and the monetary authorities should investigate why there is a disconnect between the laudable CACS scheme and the ineffective outcome observed. In addition, structural challenges hindering productivity in the agricultural sector such as insecurity, poor road networks, and inadequate power supply should be addressed.

Guinea-Bissau: Fourth and Fifth Reviews Under the Extended Credit Facility Arrangement and Requests for Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review

Guinea-Bissau: Fourth and Fifth Reviews Under the Extended Credit Facility Arrangement and Requests for Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review

PENERAPAN PRINSIP PRUDENTIAL BANKING PADA PEMBIAYAAN KREDIT USAHA RAKYAT MIKRO: STUDI PADA BANK SYARIAH INDONESIA CABANG BANDA ACEH

Kredit Usaha Rakyat (KUR) is a credit facility to middle to lower class customers that issued by banking industries in Indonesia, which focusses on aspects of livestock, trade, and agriculture. PT Bank Syariah Indonesia, Banda Aceh is one of bank company which issues this product and always applies prudent banking principles, especially in financing. The application of the prudential principle is carried out starting from the beginning of the debtor applying for credit analysis of KUR financing until the financing is paid off. This type of research is a qualitative descriptive approach through case studies. The result finds that the application of prudential banking principles applied to the company can be seen from the various provisions set by Bank Indonesia. The provisions of the prudential principle are the Capital Adequacy Ratio (CAR), namely the maximum credit provision (Maximum Lending Limit), the allowance for productive asset liabilities, and the provisions that regulate banking itself. The company can be seen from non-performing loans, it seems that their non-performing loans originated from year to year are increasing even though they have implemented the prudential principle, but there are still non-performing loans.

CHALLENGES IMPEDING THE ADOPTION OF E-PROCUREMENT BY PUBLIC SECTOR ORGANISATIONS (MINISTRIES, DEPARTMENTS AND AGENCIES) IN SIERRA LEONE – A SURVEY

The introduction and adoption of public procurement and e-procurement processes as recommended by donor organisations for governments of developing and/or under-developed countries has not achieved the intended objective of value for money. The human and material resources poured into building the capacities of countries like Sierra Leone could be considered as one of the steps of achieving the milestone i.e. value for money. The objective of this study is to examine the factors affecting e-procurement in organizations taking into consideration three factors including the value of e-procurement, e-procurement capability and e-procurement models. Data was collected through the use of a questionnaire targeted at procurement practitioners and Specialists and Heads of government ministries, departments and agencies using convenience sampling which is one of the methods of non-probability sampling. Descriptive statistical analysis techniques were employed for data analysis. Findings from the study revealed that a vast majority of the respondents believe that inadequate or limited capacity, credit facility or credibility and rigid laid-down rules of public procurement procedures and processes are the impediments responsible for the adoption and implementation of e-procurement in Sierra Leone. The paper recommends that the Government of Sierra Leone should put the necessary ICT infrastructure in place, review the current procurement act and adopt the implementation of e-procurement in order to achieve value for money.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0787/a.php" alt="Hit counter" /></p>

IMPACT OF CASHLESS POLICY ENFORCEMENT AND NAIRA REDESIGN ON FRESH CATFISH MARKETING IN MAKURDI LOCAL GOVERNMENT AREA OF BENUE STATE, NIGERIA

The study examined the impact of Cashless Policy Enforcement and Naira Redesign on Fresh Catfish Production and Marketing in Makurdi Local Government Area of Benue State, Nigeria. Multi-stage sampling procedure was employed to select 100 respondents for the study. Data were collected with the aid of structured questionnaire and analyzed using descriptive statistics and farm budgeting techniques. The result revealed that fresh catfish producers were in their productive age with mean age of 34years. Majority (76%) of the fresh catfish producers were males and 84% married. The average household size and farming experience were 5 persons and 6 years, respectively. The results of the profitability analysis of catfish marketing in the study area before and during the cashless policy enforcement and Naira redesign revealed that before the policy, the catfish producers’ total variable costs and total fixed costs were N1701379 and N665689.22, respectively, making a total cost of N2367068.22. The results further revealed that total revenue of N2659284.66 and a net farm income of N292216.440 were realised. The profitability ratio shows that for every one naira invested, the catfish producers made about 89 kobo. However, the result revealed that, amid the cashless policy enforcement and Naira redesign, the total variable cost and total fixed cost were N827791.66 and N712688.47, respectively, making a total cost of N1540475.13. The results revealed total revenue of N1650800 and a net farm income of N110384.87. The profitability ratio shows that for every one naira invested, the catfish producers made about 92 kobo. The result of the impact of catfish marketing on the income level of the marketers in the study area before and during the cashless policy enforcement and Naira redesign revealed that before the policy, 30%t of the catfish marketers had an income of over N300, 000. However, during the policy, only 26% of the catfish farmer marketers had an income of over N300, 000 and 15% had an income of less than N50, 000. The result of the constraints to catfish marketing before and during the cashless policy enforcement and Naira redesign revealed that before the policy, the most constraints to catfish marketing were high electric charges (12.3%) and lack of credit facilities (9.1%). However, during the policy, the most constraints to catfish marketing were inadequate capital (8.3%), seasonality of commodity (7.8%), high cost of feed (7.4%), high cost of production (7.3%), high cost of labour (7.3%) and low demand of product (7.0%). The study concluded that Catfish production and marketing in the study area was more profitable before the cashless policy enforcement and Naira redesign. The study recommended that provisions for agricultural incentives such as short and long-term loans, with a single digit interest rate for the marketers in order to solve the problem of lack of credit facility. Also, Marketers should form marketing cooperatives to increase their access to credit from financial institutions and hence alleviate the problem of inadequate capital.

The Fed takes on corporate credit risk: An analysis of the efficacy of the SMCCF

This paper evaluates the efficacy of the Secondary Market Corporate Credit Facility, a program designed to stabilize the U.S. corporate bond market during the COVID-19 pandemic. The program announcements on March 23 and April 9, 2020, significantly reduced investment-grade credit spreads across the maturity spectrum – irrespective of the program’s maturity-eligibility criterion – and ultimately restored the normal upward-sloping term structure of credit spreads. The Federal Reserve’s actual purchases reduced credit spreads of eligible bonds 3 basis points more than those of ineligible bonds, a sizable effect given the modest volume of purchases. A calibrated variant of the preferred habit model shows that a “dash for cash” – a selloff of shorter-term lowest-risk investment-grade bonds – combined with a spike in the arbitrageurs’ risk aversion, can account for the inversion of the investment-grade credit curve during the height of turmoil in the market. Consistent with the empirical findings, the Fed’s announcements, by reducing risk aversion and alleviating market segmentation, helped restore the upward-sloping credit curve in the investment-grade segment of the market.

A Bibliometric Analysis of Borrowers’ Behavior

Understanding borrowers’ behavior is essential in making lending decisions, strengthening financial inclusion, and alleviating poverty. This research adopts a bibliometric approach to provide an overview of the borrower’s behavior relative to the selected literature. Bibliometric analysis quantifies the impact and quality of scientific production. This study reviewed 989 articles obtained from SCOPUS and published from 1987 to 2023. Data were cleaned, formatted, and analyzed using VOS viewer (1.6.19) and the R-Bibliometrix package. The research established an increased interest in borrowers’ behavior among scholars. Nonetheless, it is overshadowed by studies in lending behavior, microfinance, banking, peer-to-peer lending, and fintech. The scholarly focus is mainly on the supply side of the credit industry with little regard to demand-side dynamics, such as borrowers’ decision-making processes, which can affect the performance of credit facilities. This study recommends that further studies on credit facility demand-side dynamics should be carried out to understand the drivers of borrowers’ decisions.

Rural households' livelihood adaptation strategies in the face of changing climate: A case study from Pakistan

Rural and agricultural communities' adaptation to climate change has gained significant attention owing to many countries' vulnerability to climate change risks. A similar trend has been witnessed in South Asia, a highly climate-vulnerable region, where research has grown dramatically considering the agriculture sector's vulnerability to climate-induced disasters. However, little attention has been paid to the adaptation of the livelihoods of rural households. This research, therefore, takes the case of Pakistan to explore livelihood adaptation strategies of rural households to climate change and investigate the factors that expedite or halt the adoption of livelihood diversification strategies. A multistage sampling design is used in this research, where 480 rural households from the Punjab province of Pakistan were selected and interviewed using stratified and random sampling approaches. A multivariate probit (MVP) regression model is employed to analyze the factors affecting households' adoption of livelihood adaptation strategies. The results show that besides adaptation of agronomic operations (agricultural adaptation strategies), rural households in the study area employed a wide range of strategies to adapt their livelihoods to climate change. These strategies include poultry and livestock farming, value addition of farm produce, trading of animals and farm commodities, small businesses (shops, etc.), daily wage labor, horticultural crop farming, and non-farming jobs. The estimates of the MVP model revealed that respondents' education, household size, income, access to a credit facility, access to farm advisory services, and access to climate forecasts have significantly influenced the choice of livelihood adaptation strategies. Based on these findings, this research recommends that the authorities should make efforts to improve farmers' understanding of the adaptation of climate change risks and educate them to adopt multiple livelihood options to improve the resilience of their livelihoods to climate-induced risks. This research has important policy implications for other countries with similar socio-economic features.

Effect of Interest Rate on Customers’ Demand for Loans in Atiwa Rural Bank PLC, Ghana

This study sought to determine the influence of interest rate on demand for loans among Rural Banks in Ghana. The study adopts an explanatory design of the quantitative approach. Secondary data from the Atiwa Rural Bank PLC database was used. The data were analysed using frequencies and percentages. Also, binary logistic and linear regression were used in analysing the relationship among the key variables of this research. The study found that interest rate of Atiwa Rural Bank PLC was rated as moderate while repayment status was high. There were differences between the category of the respondents and the repayment status. More males repay their loans as compared to females and groups. Also, differences existed between the employment status of the respondents and the repayment status. Moreover, insignificant differences were identified between the employment status of the respondents and the repayment status. Interest rate affects loan period positively. Also, a strong positive correlation between interest rate and loan period was determined. Interest rate affects amount of facility negatively. Moreover, credit facility with high interest rate is 1.020 times more likely to default in paying back the credit facility as compared to respondents who obtained their credit facility as a moderate or low interest rate. Increasing interest rate was associated with low or default in repayment of credit facility. The study therefore, recommend that management of the Atiwa Rural Bank PLC put up measures to able to track and retrieve all small amount of facility or loans given to clients. Also, the management of the Atiwa Rural Bank PLC should target more salaried workers and loans used for emergency services such as medical bills, school fees among others in order to reduce Non-Performing Loans (NPL). Moreover, the management of the Atiwa rural bank should improve upon the mechanisms implemented regarding giving of group loans and repayment issues.

Credit Scoring Modelling For Corporate Banking Institutions

This research aims to build a credit scoring modeling simulation of bank corporate loans. The credit scoring model is used in assessing creditworthiness in credit decisions. This model determines whether or not a company is eligible for the corporate credit facility it proposes. Observations were made of 100 companies included in the list of Kompas100 Index formers on the Indonesia Stock Exchange (IDX) that have the potential to apply for loans/credits to Bank Financial Institutions (IKB) in optimizing the corporate capital structure through bank debt facilities in the period 2022. Analysis was conducted on five financial aspects consisting of 14 research variables, including (i) liquidity aspects, including current ratio and quick ratio variables; (ii) solvency aspects, including debt asset ratio and equity ratio variables; (iii) profitability aspects including return on net assets, operating profit ratio, price to earnings ratio variables, (iv) activity aspects including total asset turnover, accounts receivable turnover, inventory turnover, current assets turnover, and (v) growth aspects including operating income growth rate, total assets growth rate, and operating profit growth rate variables. The analysis tool uses Logistic Regression through an assessment conducted on the company's credit rating as a proxy for the dependent variable, worth one if the credit application is feasible and worth 0 if the credit application is not feasible with a cut-off point of 0.5. The results show that credit scoring modeling for corporate credit is significantly formed from liquidity (CR) and solvency (DER) aspects. Out of 61 companies classified as not eligible for credit facilities, 58 companies were classified correctly, and out of 39 companies classified as eligible, 29 companies were classified correctly. The overall percentage shows 68.0, meaning that the logistic regression model has an accuracy of 68%.

Socio-demographic and agricultural challenges in maize production and credit facility: A study in Kavango East, Namibia

Socio-demographic and agricultural challenges in maize production and credit facility: A study in Kavango East, Namibia