Founded in 2004, the Company manufactures and sells sea kayaks. The main clientele is located in Scandinavia, while the factory is in Estonia. The Company operates under a well-know brand in the industry and sells around 6,000 kayaks a year.

After its long experience of manufacturing kayaks, the Company has noticed a growth opportunity to expand and begin polyethylene motor boats manufacturing and sale as well. The Company has already purchased the necessary moulds and the production machine to produce them. However, to initiate the production process, the Company needs to purchase raw materials for motor boat production in the total amount of EUR 250,000. This expansion will also be partially funded by a grant from Enterprise Estonia (state support organization for Estonian companies) support – total project budget is EUR 581,600, out of which maximum of EUR 436,200 will be reimbursed by Enterprise Estonia. However, the grant will be received after the motor boats production is started.

Therefore, the Company is seeking EUR 257,500 for 14 months to purchase materials to begin the motor boats production. The loan will carry an interest rate of 12% (1% monthly); however, the investors investing more than EUR 25,000 will be offered a premium interest rate of 13% (1.08% monthly). The loan will be amortized during the Company’s high season – July and August of 2022 and June, July and August of 2023, and it will be secured with 2 personal guarantees from the board members of the Company.

This is the second financing attraction stage for the Company’s expansion project. A few weeks ago, the first project in the amount of EUR 257,500 was funded on Capitalia investment platform. This financing was used to install the necessary machinery to initiate the motor boats production.

Note about war in Ukraine impact on the Company

Up until 2022, the Company had little to no turnover from clients in Russia in Ukraine; however, with the start of the war, all operations to those countries have been suspended. Therefore, no direct impact from the war can be seen.

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

• The management of the Company has 18 years of experience in the industry.
• The financing is secured with 2 personal guarantees from the board members of the Company.
• The Company has been experiencing turnover growth for the past 5 years.
• The Company operates with a significant net profit margin of 25.89%.
• The Company has a stable equity-to-assets ratio of 64%.
• The Company has a wide customer base in Scandinavia, the Baltics, Germany, and Australia.