The Company was established in 2009 as an asset-holding entity. Currently, the Company owns a fully renovated residential rural real estate property that will be used as collateral for the loan. 

A related group entity (hereinafter - the Guarantor) was established in 2014 and it produces granite, quartz, and ceramic countertops in Estonia. Around 80% of all the goods produced by the Guarantor are exported to such countries as Norway, Sweden, Denmark, Finland, Germany, the UK, the USA, and others. The Guarantor's clientele is well-diversified and includes both business and private clients in different geographies. Although the Guarantor has taken over the current business operations in 2021, the acquired business has been operating in the industry since 1999. 

The Guarantor is growing and experiencing significant demand. Currently, the main challenge is to maintain sufficient stock to further increase the sales volumes. The Guarantor has agreed on bulk material purchases from suppliers in China and India. On that basis, the Guarantor will have a better price for raw materials and will be able to improve its profit margin. However, a full pre-payment to suppliers has to be made as well as delivery takes up to 2 months. 

Therefore, to supplement the working capital of the Guarantor, the Company is seeking EUR 136,700 financing for 18 months to settle with suppliers and purchase additional raw materials. The loan will carry a 12.72% annual interest rate (1.06% monthly) and it will be amortized at the end of the term from the sale of the pledged property or refinancing to a commercial bank. This and the previous financing project will be secured with a shared 1st-rank mortgage on a real estate property consisting of 3 land units and a building with a total market value of EUR 570,000. By this project, the total issued financing amount under the same collateral will be EUR 340,700 (LTV 60%). The loan will be issued to the Company that owns the collateral real estate and the Guarantor will provide its suretyship for the loan and service the monthly payments as the guarantor for the liabilities. The project risk rate is B (89 out of 100).

Yra keletas veiksnių, dėl kurių skolinimas Įmonei yra patraukli galimybė:

• The loan will be secured with a 1st rank mortgage on a real estate property consisting of 3 land units and buildings with a market value of EUR 570,000 (LTV 60% including this and the previous financing tranche).
• The group companies are existing clients of Capitalia with an excellent payment discipline.
• The Guarantor has a well-diversified clientele in different geographies.
• The manufacturing business has been operating in the industry for more than 20 years.
• The owner of the Guarantor has a strong background and experience of more than 20 years managing equity investments (previously a partner at Askembla private equity fund), financial advisory as well as managing his own business projects.