Farming News - Online grain marketplace to protect farmers from financial losses when trading
Online grain marketplace to protect farmers from financial losses when trading
Graindex, the UK’s number one online grain marketplace, has today announced a new partnership with insurance-as-a-service platform Hokodo, to protect farmers from financial losses when trading.
Over 20% of SME insolvencies are caused by the late or non-payment of invoices. The new partnership will seek to protect farmers from these risks, creating a ‘Guaranteed Payment Collection’ service to protect purchases made through Graindex, as trades take place. If the buyer does not settle a guaranteed transaction on time, then Graindex calls on Hokodo’s debt collection service to collect the debt. If the debt collection fails, then Graindex stands as guarantor, settling the debt on the buyer’s behalf.
The Guaranteed Payment Collection service will be available to all Premium farmers on the Graindex platform. Graindex helps hundreds of UK farmers quickly and securely get a fair price for their combinable crops, connecting them to around 60 approved buyers.
Graindex, alongside it’s sister marketplace, SellMyLivestock, has listings valued at over £83m in the last 12 months, growing at a rate of over 100% annually. Combined, both marketplaces now have over 58,000 users, which is over a third (38%) of UK farms.
Dave Rose, Managing Director of Graindex comments:
“Our biggest priorities are eliminating wasted costs, time and produce, as well as making sure everyone gets a fair deal.
“By working together, Hokodo and Graindex have created a unique product that gives farmers the peace of mind that they will be paid when selling their crops. Farmers can now securely deal with a wider group of approved buyers without complicated forms, meaning they can focus on getting the best price for their crops. Our experience working with the Hokodo team has been excellent - we can now offer our Guaranteed Payment Collection service through access to their innovative technology”.
Richard Thornton, Hokodo’s co-founder and co-CEO, adds:
“Payment protection can help farmers avoid financial distress, reduce wasted stock, and take the pressure off routine transactions. Hokodo already works for SMEs throughout the UK. By partnering with the forward-thinking and dynamic team at Hectare Agritech and Graindex, we’re proud to be helping farmers protect their cash flow.”