Financing for an experienced land and soil preparation company (I)

Summary
The Company, established in 2010, is a land and soil preparation company. The Company’s main activities include preparation of agricultural land,  land reclamation, cleaning under electricity lines, and land preparation for building new electricity lines. The Company experienced a lower project flow in the first half of 2021, but has several larger upcoming projects for the second half of the year. It has recently invested its funds in the purchase of a new excavator and is currently seeking EUR 15,710 working capital financing for 24 months.  Investors are offered an 8.04% annual (0.67% monthly) interest rate with a monthly amortization schedule. 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, the loan is secured with a personal guarantee from the owner.

Altogether the Company will receive financing with the European Investment Fund guarantee in the amount of EUR 31,420. However, the amount is divided into two separate financing projects, EUR 15,710 each.

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 guaranteed loan becomes default.
  • The loan is secured by a personal guarantee from the owner.
  • The manager has over 10-year long experience in the industry.
  • The Company has a significant equity-to-assets ratio of 71%.
ID 15507-1-LV
Industry Agriculture /
forestry
Location Latvia
Loan type Business loan
Term 24 months
Expected return 8.04%
Interest rate Monthly
Amortisation Monthly
Risk grade A+ (100 out of 100)
Personal warranty Yes
Collateral Capitalia buyback
guarantee
Capitalia's cofinancing 1710
Target amount 15710
Repaid
This loan is already funded.
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