Cash on the Bag (COB). Temporary working capital finance provided to the Network to enable cash to be paid to farmers at the collection point in advance of the buyer payment. COB bridges the gap between purchase of produce from the farmer and settlement from the buyer.
Deal Coordinator. The person within the trader network who is responsible for coordinating the work of the agents on an open book deal. Generally, but not always, this person is the business owner.
Middle Costs. Costs incurred by a network in getting produce from the farmer to a buyer, which need to be deducted from the buyer price in order to calculate the price to farmers (seller price). Middle Costs may include such items as bagging, loading fees, transport, and cross border fees and tariffs.
Networks. (also known as broker networks or trader networks). Operate through a network of agents (traders), usually self-employed, to source agricultural produce from smallholder farmers on behalf of buyers.
Salesforce. The Customer Relationship Management System (CRM) that techfortrade has developed to support the management and tracking of deals. Working with the Salesforce Foundation, we have adapted the online system into a platform specifically engineered for high value, agriculture trading deals. A robust and cloud based platform, it is ideal for recording the data for each deal, with compatibility for mobile payments.
Traders and brokers (also known as middle men). Usually network businesses that use self-employed intermediaries (agents) either in sourcing produce from farmers and aggregating it at a collection point (Seller Side Agents) or liaising with the buyer (buyer side agents) on quality requirements, delivery schedules etc.
TSS. (Transaction Security Services). TSS is the name of the pioneer process used to register, monitor and finalise trade deals. Networks use the TSS ‘open book’ trading methodology to link small-scale producers to buyers with controls that enforce transparency and thereby embed trust, enhance market efficiency, control risks and add value for farmers.
Working capital finance. Networks are provided with the working capital funds to cover Cash on the Bag (COB) and middle costs in advance of receipt of funds from the buyer.