The Competitive Enhancement and Enterprise Development (CEED) project is a USAID-sponsored project targeted at improving the competitiveness of private sector enterprises in Moldova. To help achieve this goal, Crimson Capital is working under a subcontract to Chemonics to support banks in Moldova introduce alternative types of financial products – such as Purchase Order Financing (POF) and Accounts Receivable Financing. These products allow SMEs to access the financing they need without prohibitive collateral requirements; in addition, POF provides working capital, which allows SMEs to fill orders and grow their business.
Under CEED, Crimson has achieved remarkable results: US $5.5 million in POF loans have been made (a portfolio that is more than 17 times the total cost of assistance provided), supporting and financing more than US $10 million in Moldovan businesses domestic and international sales.
As one recipient of POF loans, Mr. Constantin Manole (General Director of the agribusiness trading company Maviprim-com) explains: “I didn’t believe I could receive the financing I needed in such a short period of time, without having to pledge fixed assets as collateral. Now I know from my own experience that it is possible, and it really makes a difference.” Through US $1.35 million in loans, Manole was able to obtain the short-term capital he needed to purchase grains from nearly 1,800 Moldovan farmers, which enabled him to fulfill orders from more than 300 buyers.