Expansion financing for a profitable forestry company
The Company, founded in 2016, has business in forestry and forest maintenance. It provides services like forest planting, agrotechnical care, development of felling areas with chainsaws, undergrowth sawing, and planting of trailer paths. The Company’s clients are mostly other forestry and agricultural companies. In addition at the end of 2021, the Company opened a gym in Balvi.
The Company wants to expand its services offered, by purchasing a basket lifter, for cutting tree crowns, dangerous trees, as well as sawing power lines.
Therefore, the Company is seeking EUR 36,760 financing for 24 months to finalize the purchase of the machinery . The loan will carry a 12.36% annual interest rate (1.03% monthly) and it will be amortized monthly. The sole shareholder will provide their personal guarantee. The project risk rate is B (82 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 Company has been profitable for the past 5 years and its profitability margins are higher than the industry average.
- The Company has over 8 years of experience in the forestry industry.
- The shareholder will provide a personal guarantee for the loan.
- The Company is an existing client of Capitalia with excellent payment discipline and has already repaid three loans of EUR 96,405 in total.










