The Company was established in 2018 to continue the cosmetics and perfume wholesale business, which was previously managed by the owner’s other company. Currently, the Company does not conduct any business operations and it has no consistent cash flow.  

The owner of the Company is selling a private house; however, the sale might take 6-12 months. To cover the running costs related to the sale of the property, finance the first steps of resuming the business, and refinance other liabilities, the company is seeking EUR 123,888 financing for 18 months. The loan will carry a 12% annual interest rate (1.00% monthly) and it will be amortized at the end of the term from the sale of the property. The project’s risk rating is B (85 out of 100).

The loan will be secured with a mortgage to a private house in Salaspils with a market value of EUR 306,000 (LTV 39%) in 2021. In addition to the mortgage, a guarantee from the owner is provided.

The loan and collateral agreements will be concluded in the form of a notarized act. Such a structure will enable Capitalia to collect the loan without court proceedings in case the loan will be late for more than 60 days.

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

• The loan is secured with a mortgage to a private house worth at least EUR 306,000 (LTV 39%).
• A guarantee from the owner is provided.
• The notarized structure of the loan and collateral agreement enables a fast and straightforward collection process in case the repayment runs late.