Trade offtake agreements are agreements that a producers makes with a purchasers. They agree to sell or buy a specific amount of future production. Trade offtake agreements typically occurs before the construction of a production facility. For the producer, the offtake agreement is a guarantee for the project’s economic future.
Trade offtake agreements also improve the chances of obtaining a loan to complete the project. If the lender knows that you already have firm orders, it is more likely to approve your loan application.