Given that most of the farmers operate on a small scale, they cannot meet the requirements (especially collateral) for most financial institutions to access credit at relatively lower interest rates to expand their operations. Ag-Ploutus is working with various Banks to arrange a tripartite agreement between farmers, buyers and banks to facilitate formalized input credit for their out growers, thereby transferring risks of non-payment to the bank. Under this arrangement, the buyer typically negotiates a preferential rate of interest using their financial position as leverage. The buyer may also assist with processing the loan application, thereby helping the bank reduce its overheads and associated rates.