Expansion financing for an experienced forestry and logging company (II)

Summary

The Company, founded in 2013, is a forestry company. It has 3 main business directions – maintenance of forests, planting new forests, and logging. The Company has its own logging equipment: 2 forwarders and 1 harvester. The Company does not have its own forests, services are provided to other larger forestry and logging companies. Due to increased demand for logging services the Company is currently seeking EUR 25,000 financing for 36 months to purchase another harvester. The loan will carry a 7.58% annual (0.63% monthly) interest 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 the default. In addition, a personal guarantee of the owner is provided.

Altogether the Company will receive financing with the European Investment Fund guarantee in the amount of EUR 50,000. However, the amount is divided into two separate financing projects, EUR 25,000 each.

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 loan benefits from a guarantee from the European Investment Fund which allows Capitalia to provide a buyback guarantee in case such a guaranteed loan becomes default.
  • A personal guarantee of the owner is provided.
  • The Company has 8 years of experience in the forestry industry.
  • The Company has a track record of growth with a 35% turnover increase in the first half of 2022.
ID 16704-2-LV
Industry Forestry / logging
Location Latvia
Loan type Business loan
Term 36 months
Expected return 7.58%
Interest rate Monthly
Amortisation Monthly
Risk grade A+ (100 out of 100)
Personal warranty From owner
Collateral Capitalia buyback
guarantee
Capitalia's cofinancing 2000
Target amount 25000
Repaid
This loan is already funded.
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