Expansion financing for a profitable freight transportation service provider

Summary

The Company started operations in the start of 2022 and it provides freight transportation services. The Company owns two freight trucks and works with a large Swedish forwarding company allowing it to provide its services in other European Union countries.

The Company is looking to expand its fleet of trucks by purchasing an additional Mercedes Actros truck to increase the volume of its operations. Therefore it is seeking EUR 25,000 for 15 months. The loan will carry a 7.56% annual interest rate (0.63% monthly) and it will be amortized monthly. The financing benefits from a guarantee from the European Investment Fund which allows Capitalia to provide a buyback guarantee in case such guaranteed loan becomes default. In addition, two personal guarantees from the owners are provided.

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 financing benefits from a guarantee from the European Investment Fund which allows Capitalia to provide a buyback guarantee in case such guaranteed loan becomes default.
  • Two personal guarantees of the owners are provided.
  • The Company has no other financial liabilities.
  • The Company has a strong adjusted equity-to-assets ratio of 85%.
ID 16790-1-LV
Industry Transportation
Location Latvia
Loan type Business loan
Term 15 months
Expected return 7.56%
Interest rate Monthly
Amortisation Monthly
Risk grade A+ (100 out of 100)
Personal warranty From both owners
Collateral Capitalia buyback
guarantee
Capitalia's cofinancing 1000
Target amount 25000
Repaid
This loan is already funded.
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