The Company, founded in 2011, manages a grocery store chain. The Company operates under the Union of Latvian Merchants (LaTS) brand. It operates 15 stores and 2 bakeries. Currently, the Company is experiencing healthy demand from its clients and would like to supplement inventory to keep up with the demand. In addition, the Company would like to open a bistro adjacent to one of its stores to diversify operations and revenue streams.

Therefore, the Company is seeking EUR 155,400 financing for 24 months to increase inventory and open a bistro. The loan will carry a 13.32% annual interest rate (1.11% monthly) and it will be partially amortized monthly with the remaining principal payment at the end of the term. The loan will be secured with a mortgage on two real estate properties with a total market value of EUR 268,000 (LTV 58%). In addition, the owner of the Company will provide a personal guarantee for the loan. The project risk rate is B (89 out of 100).

Altogether, financing of EUR 248,834 has been approved for the Company. The financing will be split in two tranches of EUR 93,434 and EUR 155,400. For both tranches different collateral will be provided. The loan purpose for both financing tranches will be the same.

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

• The loan will be secured with a mortgage on two real estate properties with a total market value of EUR 268,000 (LTV 58%).
• The owner of the Company will provide a personal guarantee for the loan.
• The Company is a repeat client of Capitalia with a long cooperation history. The Company has successfully repaid more than EUR 250,000 of loan principal since 2013.
• The Company’s turnover in 2023 exceeded EUR 8.5 million.