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August 2003 Patient negotiations pave way to a $42,000 purchase of equipment
Due to careful negotiation by EDP Khujand Business and Trade Advisors, Sharshara, a farmers cooperative operating in Zafarabad was able to purchase $42,000 worth of oil processing equipment.
Although the client had located the machinery, German-made medium-volume cottonseed oil press, they were unable to successfully complete a sale. The seller wanted the $42,000 cash payment up front, which combined with installation costs, required Sharshara to find financing for $57,000. But due to the pervasive lack of financing in that range, the viability of the entire project was threatened. The EDP Business Advisory Services team discussed the situation with the prospective financing institution, and learned that Sharshara could be approved for a loan if the amount was under $40,000. With that as a goal, the Khujand advisors identified several options to lower the loan amount. With the approval of Sharshara, the BAS and Regional Trade Promotion (RTP) staff developed a plan where the seller received some amount of cash up front, and the rest in deferred payment. The Khujand BAS team was integral in identifying the benefits for the seller for this deal. Working in cooperation with Sharshara, the Khujand BAS/RTP team finalized a deal where the seller accepted $22,000 in an initial payment, and signed a contract to accept deferred monthly payments over the next three years for the remainder of the sale price. This innovative arrangement allowed the supplier to sell the machinery, and allowed Sharshara to buy the equipment at an affordable price, and made possible the successful start of the oil processing enterprise.
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