What are the benefits of Commodity Financing to Consumers?


Since we discussed already the advantages and disadvantages of commodity financing to both creditors and debtors, we might as well find the benefits of it to all the consumers. Are there really benefits of commodity financing to consumers at all? What are those benefits that might help the consumers

Below are some of the assurances that commodity financing can give to all the consumers. This will enlighten us that the covered of commodity financing is wider than what we thought.

Benefits of commodity financing to Consumers

In transacting and buying commodity financing to consumers also set their own standard. Yes, we are already aware that price, durability and quality of the commodity are they main criteria in buying commodity however as this Covid 19 pandemic arises, even before, some consumers includes the following as their criteria in negotiating.

  1. Location Base

There is some consumer s that preferred to go in the nearest establishments rather than the farthest one. If all your needs is in the nearest branch, why do you still go there, right? The location is now highly considered in negotiating. Let site an example.

 Ever since Covid 19 pandemic spread all over the world, using facemasks became our daily necessity so far.So, as a citizen, you are mandated  to wear facemask  wherever you go. The government implemented a rule so you cannot leave your house without wearing facemask. To avoid violating the rules, you need to buy facemasks. Do you still need to go somewhere else when there are already stocks near you?

  • Time Convenience and stress free

Another benefit of commodity financing to consumer is convenience of time. Time is precious so don’t waste it. By considering the location, your time will not be misspent if you choose the one close to you. If you are self-employed, employed or even unemployed individual, you can already do ample work within that timeframe. Aside from consuming less time, commodity financing helps small and large scale consumer from too much stress.

For example, in agriculture area:  Since covid 19 pandemic is still rising, most of our agriculturists or farmers are affected. Most of their crops are squandered because they can’t deliver it to other place due to some regulations made by the government during this pandemic. As a large scale consumer within that area, you are going to import them and distribute it to smaller scale consumer rather than importing to other places which may took time to arrive. You already save time and at the same time, you helped others too.

  • Control Costs

For a large scale consumer, the industrialist has the assurance that the price of their products will remain constant and they eventually don’t have to pass the changes in the raw materials prices to their consumer. The demand of their products will not be affected due to some price hike.

If I ask you, is commodity financing helpful to our consumers banking?  Yes, it is really advantageous right? Imagine our city, our provinces without the help of commodity financing? It is not going to be as productive as it is now. Commodity financing is such a big help to all types of individuals, not only to the financiers and borrowers.

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