Expansion financing for a road construction company (II)
Kokkuvõte
The Company, established in 2018, is a road construction company. It works mainly as a subcontractor under larger road construction companies. It has 2 major general contractors under which it works – Baustelle, SIA, and Mikor, SIA. Currently, the Company has an increasing project flow and it is seeking EUR 25,000 financing for 36 months to purchase a new bulldozer and another tractor for road construction. The loan will carry a 7.08% annual interest (0.59% monthly) with a monthly amortization schedule. The loan is fully secured with a guarantee from European Investment Fund as well as a personal guarantee from the owner.Altogether the Company will receive financing with the European Investment Fund guarantee in the amount of EUR 50,000. However, the amount is divided into two separate financing projects, EUR 25,000 each.
There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
- The loan is fully secured with a European Investment Fund guarantee and the owner's personal guarantee.
- The Company has a significant equity-to-assets ratio of 86.5%.
- The owner has more than 10 years of experience in the road construction industry.