Expansion financing for a growing and profitable sawmill
Summary
The Company, founded in 2013, operates a sawmilling plant near Smiltene. It manufactures parts for wooden pallets and packaging materials. The Company buys roundwood and saws it in thin and little planks. The Company has several well-known large clients – wooden pallets producers. The Company is purchasing a modern sawing line to significantly increase the output and efficiency of production. The Company is investing a significant amount of its own capital but would require additional financing for the remaining part.
Therefore, the Company is seeking EUR 103,780 financing for 36 months to acquire additional machinery. The loan will carry a 11.16% annual interest rate (0.93% monthly) and it will be amortized monthly with an 80% principal balloon payment at the end of the term. The chairman of the board of the Company will provide a personal guarantee. In addition, once the machinery arrives in Latvia, it will be pledged in favour of Capitalia, SE. The project risk rate is C (79 out of 100).
Key investment highlights
There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
- The majority owner of the Company will provide a personal guarantee for the loan.
- The Company and its owners have more than 10 years of experience in the respective industry.
- The Company has experienced continuous growth in the past years.
- The Company is an existing client of Capitalia with an excellent payment discipline.
Latvia 
Lithuania 
Estonia