Seasonal financing for a profitable and experienced grain farm (II)


The Company was founded in 1996 and operates a sizeable farming business in the Jelgava district. The Company grows crops and sells the harvest to the largest grain wholesalers and exporters. The Company also has a grain pretreatment plant to sort, dry, and store grain.

In total, the Company manages approx 1,745ha of land out of which approx 1,095ha is owned by the Company. Another 380ha are managed by a related entity engaged in the same industry.

Due to the high seasonality of the grain farming business, the first half of the year usually requires additional working capital to timely buy fertilizers, seed grain, and settle for other seasonal goods and services. Because of the general price increase, the same scale of operations requires more funds than the previous year.

Therefore, the Company seeks additional seasonal financing of EUR 306,300 for 6 months to settle with suppliers and employees during the high farming season. The loan will carry an 11.04% annual interest rate (0.92% monthly) with monthly interest payments and principal repayment at the end of the term. The repayment of the loan is based on seasonal income from the sold grain and received subsidies in autumn 2023. The loan is secured with a personal guarantee from the owner. The project risk rate is A (92 out of 100).

Key investment highlights

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

  • The Company successfully operates the business for more than 25 years.
  • The Company has an outstanding equity capital of EUR 4.3 million.
  • The loan repayment is based on seasonal income from grain and guaranteed state subsidies.
  • The Company has been operating with profits every year since 2002.
  • The loan is secured with a personal guarantee from the owner.
  • The Company is an existing client of Capitalia and services the active loan with excellent payment discipline.
ID 16809-3-LV
Industry Agriculture
Location Latvia
Loan type Business loan
Term 6 months
Expected return 11.04%
Interest rate Monthly
Amortisation At the end of the term
Risk grade A (92 out of 100)
Personal warranty From owner
Collateral None
Capitalia's cofinancing 8300
Target amount 306300
Successfully funded
This loan is already funded.
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