1.
OrmitaCommerce Network
www.ormita.de
Ormita Commerce Network
Barter • Countertrade • Mutual Credit
www.governmentbarter.com
Interest Free
Agricultural Equipment Finance

2.
Interest Free
Agricultural Equipment
Finance
The Ormita Commerce Network provides an innovative market-based financial solution that enables
key players in the agricultural services sector - equipment, machinery and chemical manufacturers - to
collaborate with farmers to create sustainable financing models without the need for interest-bearing cash
loans or vendor financing.
Ormita is recognised as the world’s leading agricultural barter-exchange and reciprocal trade oriented financial
services provider, employing highly skilled and enthusiastic individuals from a diverse range of professional
disciplines.
For over 12 years our team has been helping agricultural service providers and their clients meet their financial
goals through the creative use of barter. We do this by applying innovative processes, market intelligence and fresh
thinking. In everything we do, we are committed to creating value for our clients by:
• Working collaboratively with them
• Developing a deep understanding of their needs and
aspirations
• Providing tailor-made solutions
• Being accessible and responsible
We combine unparalleled industry experience to deliver
results that enable our clients to compete and expand in
new markets, as well as expand on existing untapped
opportunities.
Our service is underpinned by an emphasis on knowledge,
research, experience and professionalism.
Who Needs This Solution?
Farmers needing financing for essential equipment,
machinery or chemicals
Suppliers looking for creative alternatives to locate and
finance new sales in challenging economical or political
environments
Governments looking to stimulate the adoption of new
technologies and practices; while reducing trade deficit
risks
Anyone looking to access new markets
Managing Counterparty Risk
• Allows access to captive markets
• Reduces foreign exchange risks
• Helps bypass currency convertibility issues
• Eliminates interest volatility
• No need for vendor financing
• Cleans up bad debt situations
• Strengthens business relationships
thinking. In everything we do, we are committed to creating value for our clients by:
Team
w
ork
Core
Values
Custom
erFirst
Continuous
Im
provem
ent
Integrity
lenders
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

3.
Beyond traditional
lending: financing
through barter
Traditional equipment finance lenders,
as well as banks, use the Five Cs to
evaluate loan applications: Character,
Credit, Cash Flow, Capacity and
Collateral. However, while banks look
at small-to-medium size companies
from a Fortune 500 perspective, Ormita
sees applicants from a small business
perspective, which highlights a sixth C:
Common Sense.
Common Sense Finance
Every decision to purchase and every
decision to grant barter financing is
made using common sense. Where
traditional finance houses look at
existing sales and assets; Ormita
provides funding for capital purchases
based on idle capacity, excess stocks,
lost opportunities and future sales
potential.
Monetising Excess Capacity
When repaying in barter, a farmer is
able to create liquidity from excess
production, B-grade products or under-
utilised production capacity - without
affecting their existing cash sales
channels.
Maximising Returns for
Buyers and Sellers
Ormita provides buyers and sellers
access to a secondary marketplace
where non-cash transactions do not
need to be bilateral.
A buyer can purchase from ‘Party A’
and repay by selling goods to ‘Party B’.
We work with clients to maximise
the value of any sale by placing their
stocks, inventories or assets with new
clients in markets which will guarantee
the greatest returns. When compared
to liquidating or destroying excess
production, barter is a preferential
option for many farmers.
Ormita is committed to
financing farmers and
smallholders
Ormita’s agricultural finance initiative equips farmers with the tools they
need to maximise harvest yields and improve productivity. The criteria for
providing barter-based finance is based on a combination of the following:
1. The availability of existing (warehoused/stored) commodities which
may be bartered as either full or partial payment for essential equipment,
machinery and chemicals.
2. The existence of over-production of “A” or “B” grade stocks which
traditionally would be either liquidated for less than market value (or
destroyed).
Depending on the commodity, certain B grade stocks may be bartered to end-
users as a component in food production, general consumption or feed for
livestock.
e.g. Leaf damaged, wilted, blemished, rusted, under/over sized produce, incorrectly
proportioned or other cosmetic issues.
This may be existing and/or future stocks.
3. The ability to create excess production from existing tools and capacities.
Provided there is existing capacity to produce additional crops or raise new
livestock, financing on barter may be available on the basis of future production
capabilities. In such instances Ormita may require additional financial
guarantees.
e.g. A Farmer may have historically chosen to leave certain fields fallow because there
has been no immediate demand for any crops able to be grown there. Based on an agreed
contract with an Ormita client the grower will then start growing to meet that demand.
4. The market potential (demand) for the agricultural commodities offered
on barter.
In a barter network this demand traditionally comes from “end-users” of grains,
fruits, vegetables and meats.
e.g. Food manufacturers, hospitals, schools, government enterprises, factory cities,
restaurant chains, catering companies, hotels etc.
5. The track record of the management of the farm
• How long has the farm been operating?
• What is their track record?
• How have they faced challenges in the past?
6. Access to co-financing from other sources
Ormita can potentially finance transactions which may attract partial government
funding or subsidies but where the farmer has been unable to secure adequate
funding for the balance of the investment.
Please note that this is not a comprehensive list of our criteria for funding.

4.
Understanding the Barter Process
The Barter Clearinghouse
Ormita operates its own closed marketplace where goods and services
are contracted for purchase or sale at an agreed price for delivery
at a specified date. These purchases and sales, much must be made
through an Ormita broker, are made under strict terms and conditions
of specially tailored supply contracts.
How Prices are Determined
Typically barter prices are equivalent to the prevailing cash market price
- although there may be some exceptions.
Through bypassing certain aspects of the traditional supply chain, Ormita is sometimes able to obtain a “better than
market price” for sellers of agricultural commodities. Such situations occur when Ormita is able to trade certain food
items directly to end-users - such as food processors, restaurants or catering companies. In these instances we may be
able to achieve “closer to retail” market pricing for the agricultural goods.
Ultimately however, pricing of goods and services is arrived at through the interaction between buyers and sellers
with Ormita acting as the record keeper of the transactions.
Trades are recorded in the local currency of the buyer and seller, with currency conversion based on an agreed
exchange rate.
Insurance against Non-Delivery to Buyer
For a fee, Ormita can arrange insurance against risks association with storage, transport, non-delivery or other
types failures by suppliers to complete various transactions. For machinery, equipment and chemical suppliers, a
comprehensive non-payment insurance against the financial default following non-delivery of the contractually due
goods or services is usually available. To implement an insurance policy under these terms there must be a contractual
obligation to pay damages or repay an advance payment upon non-delivery by the supplier.
Policy tenors are in general up to five years depending upon amongst other things the country of risk and the
creditworthiness of the counterparty. However, in certain circumstances policy terms can be obtained for transactions
of seven to ten years.
In most cases this insurance is not necessary as Ormita can often arrange the back-to-back delivery of goods from the
supplier to the farmer; from the farmer to a third party; and from third party’s back to the original supplier.
Repayment on Barter
There are various options for repayment of goods acquired from suppliers on a barter basis.
a. Repayment based on existing stocks / surpluses
This may be warehoused commodities, excess production or blemished stocks
b. Repayment based on future delivery of produce / livestock
• Delivery in the future all at once (on a known date).
• Delivery in the future over a fixed time period.
- For a price contracted today.
- For a floating price (market equivalent price).
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

5.
The Multilateral Barter Process
1. Preliminary
understanding of
farmers procurement
needs
Specifications, lead time,
quantity etc…
2. Exploration of possible
repayment mechanisms
via barter
Existing or future stocks,
potential distribution of
bartered goods, restrictions
on certain sale outlets,
quality control etc…
INITIAL COMMUNICATION
1. Supplier enters into
sales contract with
farmer.
2. Farmer enters into
barter repayment
contract with Ormita.
3. Ormita enters finalises
barter spend plan with
supplier
4. Insurance on contracts
arranged
Particularly relevant if
export/import required
FINALISE CONTRACT
1. Supplier is paid via the
Ormita trade system
and uses those credits
to offset existing
budgeted expenses.
2. Transportation of goods
by supplier to farmer.
3. Transportation of goods
to the supplier.
PERFORMANCE OF
CONTRACT
1. Analyse market
2. Analyse farmers
financing needs
3. Review enabling and
regulatory environment
for local sale or
export of agricultural
commodity offered in
repayment
4. Analyse risks
5. Develop preliminary
commercial plan
DETAILED DUE DILLIGENCE
1. Opening three-party
discussions with
various suppliers whose
products potentially
meet the farmers
requirements.
2. Confirmation of order
from farmer
e.g. delivery dates,
contractual terms and price
3. Confirmation of
suppliers needs on
barter from elsewhere
in the network.
NEGOTIATION
CONTRACT REVIEW
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

6.
Lower Opportunity Cost
for Suppliers
Finding new cash-paying customers often involves and investment in sales, marketing and rigorous
counterparty assessment. Ormita provides suppliers with direct access to new customers as well as a
collateralised form of (immediate) payment; thereby reducing search and information costs, bargaining and
decision costs, policing and enforcement costs.
Some of the benefits to our suppliers are as follows:
• There may be a lack of immediate opportunities to sell for cash in certain markets.
• Foreign currency exchange controls may mean repatriation of cash income from certain markets is difficult or
otherwise impossible.
• Barter may be used to stimulate incremental sales to existing customers who could not otherwise finance all of
their needs.
• In many countries preferential treatment is given to tender responses which have some barter component; even
where the barter component is negligible in comparison to the overall transaction size.
The Ormita marketplace is comprised of more than 220,000 businesses spanning 54 countries and affords suppliers
the ability to access “off market” and “non traditional” clients without additional marketing costs. Suppliers willing to
engage in barter are able to penetrate new markets and expand sales potential in existing markets.
Benefits of Barter
Profit
Legal & Collection
Cost of Financing
Marketing Cost
Sunk Overheads
Sales Order
Fulfilment Cost
Sales Order
Fulfilment Cost
Profit
Liquidation Sale
Profit
Liquidation Sale
Profit
Marketing Cost
Depreciation
Sunk Cost
Profit From Full
Sale Price
Sunk Cost
Newly Manufactured Goods
Example of Interest Saved
Surplus Inventory
Example of Revenue Increase
Revenue($)
Existing Sales Barter Sale Cash Liquidation Barter Sale
Revenue($)
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

7.
Preservation of Cash for
Buyer & Seller
During difficult economic times farmers may face high finance costs. Conversely, equipment and
agricultural supply sellers may face slow movement of products in those same markets- leading to lost
opportunities and growing surpluses. For both farmer and supplier this may increase the likelihood of
downsizing and/or the reduction of inventory holdings.
The Ormita barter solution improves liquidity by allowing farmers to self-finance essential supplies. Repayments are
not made in cash; but with existing or future production. Agricultural equipment, machinery and chemical suppliers,
in turn, are able to utilise trade credits to offset many of their fixed operational costs of their businesses (offsetting real
cash expenses)
Other benefits are as follows:
• Farmers in certain countries may otherwise have a
higher cost (or no access at all) to trade finance. In such
instances bartering of commodities may be the only
alternative solution to traditional finance
• Preserves hard currency.
• Reduces the risk of currency volatility (for both buyer and
seller).
• Bypasses currency convertibility issues (for both buyer
and seller).
Increasing costs for
essential supplies
FarmerCurrency convertibility
Increasing require-
ments for energy and
water efficiency
Competition
Lack of financing
mechanisms
High cost of interest
Lack of surplus cash
Market price fluctuations
Financial challenges facing farmers
Benefits of Barter
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

8.
Managing Payment Risk
The Ormita solution offers a unique (and immediate) form of collateralisation for suppliers.
• Depending how a transaction is structured, barter can serve the function of collateralisation either in the form of:
a. Trade credits accrued by the supplier (appearing as an asset on the suppliers balance sheet); or
b. Goods immediately delivered to the supplier.
• Eliminates forward supply price risks which may be caused by exchange and/or interest
rate volatility. Hedging currency risks through barter rather than traditional financial
instruments may be desirable because purchasing financial instruments requires an
upfront cash payment and thus drains liquidity.
• Traditional financial instruments cannot always hedge real exposures effectively because
financial value changes with nominal exchange rates, not real exchange rates, and is
based on interest earnings not inflation. A correctly structured barter transaction can
help solve the real price problem.
• Suppliers acquire an actual security interest in goods to be delivered; either directly from
the farmer or indirectly in the form of barter trade credits and/or a back-to-back contract
with arrange of different suppliers in the Ormita network.
• Maximises returns for the seller and buyer – no need to sell stocks at liquidation prices in
order to finance a purchase or make a sale.
Benefits of Barter
Liquidate stock at a
discount
Seller must finance
part or all of sale
No financing by seller
required
C.O.D. terms only
Traditional Sales
Channels
Barter Sales
Channel
Risk Level for Suppliers
Extreme
Medium
High
Sales numbers lower
than forecasted
Sell all stocks for
maximum price;
supply meets or
exceeds demand
Sell all stocks for
maximum price;
supply meets or
exceeds demand
No financing by seller
required
C.O.D. terms only
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

9.
Reduces the Cost of
Borrowing
For certain countries, the cost of finance is often a barrier to procuring certain goods and services.
Particularly troublesome are those markets with high cost of finance coupled with interest and/or currency
exchange rate volatility.
• Repayments cost less than cash (capital plus interest vs. the cost to produce goods and supply them in repayment).
• Barter offers a guaranteed way to repay borrowings whereas traditional bank finance requires repayment but does
not guarantee the farmer a matching sale of their agricultural products in return.
• Accrued barter trade credits represent a legitimate balance-sheet asset and may be used as evidence of financial
viability for future cash borrowings.
Savings for Farmer
Example of Interest Saved
Cash Barter
Borrowed amount $ 250,000 $ 250,000
Interest 5% 0%
Repayment Period 5 N/A
Total Cost of Interest $ 62,500 $ -
Total amount saved using barter: $62,500
Savings for Farmer
Example of Interest + Principal Saved
Cash Barter
Borrowed amount $ 250,000 $ 250,000
Interest 5% 0%
Repayment Period 5 N/A
Total Cost of Interest $ 62,500 $ -
Total Cost of Repay $ 312,500 $50,000*
Total amount saved using barter: $262,500
(*Assumes a $50,000 cost for growing, picking and packing extra produce for
sale on barter inclusive of any service fees to Ormita)
Interest
Principal
Cost to create
new sale
Loan Repayment Comparison
Traditional
Finance
Barter
Finance
Benefits of Barter
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

10.
A Viable Alternative to
Risky Vendor Financing
Suppliers traditionally carry some form of financial risk when dealing with traditional buyers. This risk is
often in the form of payment terms (e.g. 30 days), providing potential for purchasers to default or delay their
payment obligations.
Ormita helps to eliminate this risk by providing immediate payment to the supplier in the form of barter
credits which can then be used to offset existing fixed expenses.
• Slow payers increase suppliers operating costs.
• Late payments cause a dilemma for suppliers who often wish to maintain good relationships with their customers
but may also be adversely affected by the disruption created in their own cash flow.
• Collection of bad debts are time consuming, can be expensive, and require specific knowledge of related practices
and laws.
• Ormita provides a mechanism to clean up most bad debt situations where a cash repayment would otherwise be
difficult to achieve or where judgements difficult to enforce.
• Accrued barter trade credits represent a legitimate balance-sheet asset and may be used as evidence of financial
viability for future cash borrowings.
Benefits of Barter
Assets
Cash at bank
Fixed assets
Stock
Receivables
Liabilities
Borrowings
Depreciation cost
Warehousing cost
Exchange rate risks
Provision for bad debt
Payables
Assets
Cash at bank
Barter at bank
Fixed assets
Stock
Receivables
Liabilities
Borrowings
Payables
Traditional Balance Sheet Barter Balance Sheet
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

11.
Provides Suppliers an
Immediate Form of Payment
In areas where supplier finance is risky, barter provides an essential alternative for two fundamental
reasons:
• Ensures immediate inflow of a tangible balance sheet asset which can then be immediately used to offset existing
cash expenses.
• Avoids bad debt; as the supplier is paid immediately in the form of barter trade credits. There are no receivables in
barter transactions - payment is immediate.
Ormita’s multi-channel barter sales management programme
allows agricultural suppliers and farmers to:
• Rapidly generate significant and immediate revenues in multiple
countries and markets.
• Focus marketing and pricing approaches for various target segments.
• Boost customer loyalty and leverage brand equity through controlled
channel management.
• Take limited and calculated risk for developing new sales channel.
• Explore newer markets with minimal change in existing business
processes and structures.
• Integrate partner and supplier channel within your marketing
strategy.
• Offer product and services catalogue to match customer expectations
and market trends.
• Become more resilient and responsive to business environment.
Benefits of Barter
“Businesses often have excess capacity in their own goods, services or
infrastructure, even more so when the financial cycle slows and credit
tightens. Business people find that using capacity to source needed goods
and services is an attractive alternative proposition to conventional sales
and credit if it can increase sales, ease cash flow or reduce reliance on
conventional credit.”
“Capacity Trade and Credit: Emerging Architectures for Commerce and Money”.
City of London Corporation, ESRC, UKTI, BIS joint Report. City of London Corporation.
December 2011.
© Copyright Ormita Commerce Network Limited. All Rights Reserved.

12.
The Facts about Barter
Barter is the process of exchanging
products, goods or services, for other
products, goods or services. It is a
simple method of transaction where
little to no money is used. In today’s
world, it exists parallel to the monetary
system.
Historically barter operated instead
of money as the primary method
of exchange. This also occurred
throughout history in times of
monetary crisis, when a currency was
unstable, or devalued by hyperinflation
or recession. Nowadays, however,
barter is a major force in the economic
world, becoming a much more
systematic and structured system of
commerce.
Ormita works directly with
Government Ministries, State Owned
Enterprises, Fortune 500 Companies,
Stock Exchange Listed Companies and
a handful of carefully selected private
corporations in 54 countries.
Multilateral Barter
A trade or barter exchange provides
a trading platform and bookkeeping
system for its members or clients to
provide barter opportunities.
The member companies buy and sell
products and services to each other
using an internal currency known as
“barter” or “trade dollars”. Participants
in barter earn trade credits (instead of
cash) when they sell and these credits
are deposited into their account. They
then have the ability to purchase goods
and services from other participants
using their trade credits.
In multilateral barter, trades do not
need to be direct. Instead three, four,
five and six-way transactions are
possible. Transactions can also take
place at different times so no single
supplier needs to “swap” their product
or service immediately but can do so
over a period of time. In these instances
the value of the deal is recorded
centrally and the process managed by a
commerce network or barter exchange
organisation.
The Ormita Commerce
Network
Nearly every business faces the problem of cash flow management.
Issues that contribute to the need for cash flow management include
highly competitive markets where constant advertising is a mandate,
increasing business expenditures to attract consumer attention, planned
or unplanned downtime, perishable inventory and the necessity of
discounting inventory.
Ormita is essentially a secondary market that allows businesses to
overcome these issues by allowing sales and purchases of essential goods
and services using barter instead of existing cash.
The Ormita trade platform helps to remove the limitations that
traditionally were a part of any barter transaction, such as the need for
an equal dollar value, the mutual need between any two companies for
each other’s product or service, and the time it can take to coordinate the
transaction.
The Ormita business barter solution is designed to:
• Increase sales and market penetration.
• Generate new income and working capital directly from existing capacity.
• Enhance corporate cash management by allowing a business to reduce its
borrowing and trade finance risks.
• Offset many of the costs of doing business,
• Receive optimum value for goods and services.
• Improve shareholder value and overall profitability.
Key Performance Metrics
Trustworthy
- Founded in 1999.
- Financially sound.
- Backed by individuals with global reputations.
- More than 70 years of combined industry experience.
- Experienced shareholder base.
Global Reach
- Offices in 21 countries.
- Representatives in 36 countries.
- Customers in 54 countries.
- More than $3.4 billion USD in trade per annum.
Recognised by the UK Government as the largest non-
cash trade platform in the world.

13.
OrmitaCommerce Network
www.ormita.de
www.governmentbarter.com
www.barterforequity.com
www.barterforadvertising.com
www.mutualcreditlibrary.com
Agriculture Sector Solutions Team
Ormita Commerce Network Limited
1704. 27 Hillier Street
Central. Hong Kong
Tel: +852 5808 2722
Fax: +852 3017 5509
Email: info@ormita.com
Local Country Office Contacts
Australia
Tel: +61 7 3149 3152
Fax: +61 7 3054 7336
info@ormita.com.au
Canada
Tel: +1 647 931 6841
Fax: +1 647 955 3798
info@ormita.ca
China
Tel: +86 755 33 011 789
Fax: +86 755 33 011 790
info@ormita.cn
Cyprus
Tel: +357 25 025092
Fax: +357 25 030625
info@ormita.com.cy
Finland
Tel: +358 9 3158 2401
Fax: +358 9 3158 2188
info@ormitafinland.com
Germany
Tel: +49 931 3069 99280
Fax: +49 931 3069 99289
info@ormita.de
Hong Kong
Tel: +852 3741 0701
Fax: +852 3743 4409
info@ormita.hk
India
Tel: +91 22522141
Fax: +91 22520496
info@ormita.in
Israel
Tel: +972 3 7630190
Fax: +972 3 7630711
info@ormita.co.il
Italy
Tel: +39 015 952 6193
Fax: +39 015 952 2007
info@ormita.it
Malta
Tel: +356 2778 1011
Fax: +356 2333 1015
info@ormitamalta.com
Mexico
Tel: 52 55 5293 8509
Fax: 52 55 5280 5244
apalme@acambio.com
New Zealand
Tel: +64 9 974 9159
Fax: +64 9 974 9223
info@ormita.co.nz
Pakistan
Tel: +92 42 585 2644
Fax: +92 42 585 2645
info@ormita.com.pk
Romania
Tel: +40 3 1710 6118
Fax: +40 3 1630 0225
info@ormita.ro
Singapore
Tel: +65 3158 1477
Fax: +65 6744 7075
info@ormita.sg
South Korea
Tel: +82 70 7705 3525
Fax: +82 2 6234 0925
info@ormita.co.kr
Sweden
Tel: +46 8 4083 9907
Fax: +46 8 5250 7076
info@ormita.se
United Arab Emirates
Tel: +971 4 451 7070
Fax: +971 4 442 3969
info@ormita.ae
United Kingdom
Tel: +44 203 355 1381
Fax: +44 203 332 0134
info@ormita.co.uk
United States of America
Tel: +1 646 843 6214
Fax: +1 646 547 1978
info@ormitausa.com
Zambia
Tel: +260 97 789 5034
info@ormitazambia.com
Zambia
Tel: +260 97 789 5034
info@ormitazambia.com
Affiliate Agents in: Brazil, Hungary, Philippines, South Africa, Thailand, Turkey, Ukraine & Venezuela
This brochure provides general information only. The information contained herein was current and based on available information
when we went to press and is subject to change at any time without prior notice. The content of this brochure in no way represents
an offer to conclude a contract.
© 2009 Ormita Commerce Network Limited.
Last updated February 2013