For the first time, Banco Galicia granted a loan using the grains stored in silo bags in the field which are monitored with SiloReal technology, creating a specific line of credit. In detail, Espartina SA used 19 silo bags to take out a loan for US$600,000 through a Pampa N&G warrant, thus transforming immobilized working capital into a real asset.

“Now producers and agricultural companies can use their reserved grains in silo bags as collateral to access loans, along with other financial benefits and protection,” they said.

SiloReal is the first Latin American startup to offer a solution to agricultural producers to make the grain stored in silo bags yield through the use of technology. Today, the company has more than 50 clients, 221 establishments, and over a million tons of monitored grains in productive areas of Brazil and Argentina.

Delfín Uranga, CEO and co-founder of SiloReal, highlighted: “We want producers and agricultural companies to have peace of mind and liquidity. We use technology to provide identity, proof of existence, and the status of the silo bags remotely and in real time, achieving traceability, security, and financing for stored grains. In this way, we transform invisible assets in the field into connected real assets, as in the case of Espartina SA”.

“We are very excited about this innovative breakthrough we have achieved. We are making history because we are the first family agricultural company to use our SiloReales as collateral,” stated Marcelo Carrique, director of Espartina SA.

On the other hand, Hernán Busch, manager of Agribusiness of the bank, emphasized: “At Banco Galicia, we seek to innovate constantly and this includes connecting with new technologies that provide simple and agile solutions to the producer. This is the first operation carried out with these characteristics, using real-time information provided on the status of the silo bags thanks to the monitoring provided by SiloReal. This allows us to further expand financing opportunities to our clients”.

Technology

As they explained, the startup, which operates in Argentina and Brazil, provides the agricultural sector with real-time monitoring services through technology for merchandise stored in silo bags.

“It offers proof of identity, existence, and status remotely and continuously to solve traceability, security, and access to liquidity issues. It is composed of a multidisciplinary work team that combines knowledge of the agro ecosystem, technology, entrepreneurship, and securitization,” they pointed out.

Nation, L. (2024, March 14). For the first time: a bank granted a loan for US$600,000 with grains in silo bags as collateral. LA NACION. https://www.lanacion.com.ar/economia/campo/por-primera-vez-un-banco-otorgo-un-credito-por-us600000-con-garantia-de-granos-en-silobolsas-nid14032024/#:~:text=Por%20primera%20vez%2C%20Banco%20Galicia,una%20l%C3%ADnea%20de%20cr%C3%A9dito%20espec%C3%ADfica.