The Company was established in 1992 and its main business is growing free-range laying hens for selling eggs. Currently, the Company has approximately 7,000 laying hens. The main clients of the Company are the largest retail store chains in Latvia, including Rimi and Maxima, as well as restaurants. Additionally, the Company cultivates 350 ha of land and grows several agricultural cultures such as wheat, buckwheat, corn, barley, and rapeseed. Currently, the Company is seeking EUR 24,720 lease-back seasonal financing for 6 months to pay taxes and settle with suppliers before income for the harvest is received. Investors are offered a 13.8% annual interest rate (1.15% monthly) with monthly interest payments and principal repayment in 3 equal parts in September, October, and December. The lease-back agreement is secured with a grain harvester with an estimated market value of EUR 30,000 (LTV 82%). In addition, a personal guarantee from the owner is provided.

Financing product

The leasing product is industry standard where Capitalia is the owner of the equipment. Co-financing amount as well as the initial downpayment received from the Company, if applicable, is used to purchase the assets to be leased. Capitalia will remain the owner of the equipment during the entire leasing period, thus securing investor interests and reducing the possibility of fraudulent activity with the collateral. The equipment will be leased to the Company based on a financial lease agreement. The Company will cover all maintenance costs related to the leased object and the leased object will become the property of the Company only at the end of the leasing agreement and after repayment of the value of the leased object.

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

• The leasing agreement is secured with a grain harvester with a conservative estimated market value of EUR 30,000 (LTV 82%) as well as a personal guarantee from the owner.
• The Company has a track record of growth and profitability.
• The Company is an existing client of Capitalia and has already repaid 13 loans and has used EUR 487,511 of the factoring limit.
• The Company receives regular state subsidies.