Seasonal financing for a profitable retailer of hunting goods (III)

Summary

The Company was founded in 2009 in Latvia and is a reputable expert retailer of a wide range of hunting and active leisure goods and equipment such as clothes, riffles, optics, ammunition, and other hunting gear. The business operations are conducted through 3 legal entities and altogether the group manages 5 stores, including one in Lithuania. The Company operates two of these stores. The Company belongs to a sizeable group of entities operating in other industries such as real estate, construction, and equipment rental business. The war situation in Ukraine has stimulated the demand for clothing and optics goods, therefore in 2022 the Company experienced a significant increase in demand for its goods. To supplement the inventory and prepare for the season by making a bulk purchase of goods, the Company is seeking additional financing of EUR 225,067 for 10 months. Investors are offered a 10.8% annual interest rate (0.9% monthly) with a monthly amortization schedule. A personal guarantee from the beneficial owner of the group and a guarantee of a sizeable related retail company with an adjusted equity capital of EUR 3 million is provided.

The Company is a returning client of Capitalia and the Company and its two related group companies successfully have repaid more than EUR 2M of loan principal.

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 has been successfully operating in the industry for over 10 years.
  • A personal guarantee from the beneficial owner and a related company with an adjusted equity capital of EUR 3 million is provided.
  • The Company has a significant equity capital.
  • The Company has an exceptionally good reputation in its market segment.
  • The Company and its two related companies have successfully repaid over 2M in loan principal with excellent payment discipline.
  • The Company has been operating with profits every year since its foundation.
ID 15759-4-LV
Industry Retail
Location Latvia
Loan type Business loan
Term 10 months
Expected return 10.8%
Interest rate Monthly
Amortisation Monthly
Risk grade B (88 out of 100)
Personal warranty Yes, from the
manager and a
related company
Collateral None
Capitalia's cofinancing 6067
Target amount 225067
Successfully funded