Founded in 2015, the Company provides specialized construction works - ground works and construction of basic gravel roads. Generally, the Company works as a subcontractor for larger Latvian construction companies with an annual turnover of over EUR 50 million. In addition, the Company takes up private projects – construction of private gravel roads, and the preparation of construction sites. Larger general construction companies usually pay with a deferred payment as well as the acceptance of work takes time and procedure. The Company has notable trade receivables for work done as well as some customers are not invoiced yet. Such a situation caused a lack of working capital. Therefore, the Company is seeking additional short-term financing of EUR 20,790 for 6 months to settle with suppliers, employees, and taxes. The loan will carry a 13.08% annual interest rate (1.09% monthly) and it will be amortized starting from the 4th month. Since the Company has invoiced the clients for more than EUR 100,000 and several more projects are ongoing, the repayment will be linked to the received clients’ payments. The financing will be secured with a commercial pledge on an excavator owned by the Company with a remaining book value of EUR 28,308. In addition, a personal guarantee from the owner is provided. The project risk class is C (74 out of 100).

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:

• The repayment is linked to already invoiced projects with a value of more than EUR 100,000.
• The Company’s clientele includes well-known and stable Latvian construction companies with an annual turnover of over EUR 50 million.
• The financing is secured with a commercial pledge on an excavator with a remaining book value of EUR 28,308.
• A personal guarantee from the owner is provided.
• The Company has a significant equity-to-assets ratio of 58%.