Financing for an experienced agricultural and logging company (III)
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The Company, established in 2012, has 2 main business activities: growing wheat and rapeseed, and logging. Agricultural activities make up around 70 %, logging - 30% of the Company’s income. The Company cultivates 320ha of agricultural land, out of which 270ha are rented and 50ha are owned by it. The Company has recently acquired additional land to cultivate and therefore is currently seeking EUR 25,000 seasonal working capital financing for 10 months to settle with suppliers. The loan will carry a 7.08% annual interest (0.59% monthly) with monthly interest payments and principal repayment in two payments in September and October 2024. 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, a personal guarantee from the owner is provided.
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 a track record of growth and profitability.
- The Company has 10 years of experience in agriculture.