Seasonal financing for an experienced agricultural company (V)

Summary

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 15,590 working capital financing for 17 months to pay to suppliers before receiving income for harvest in autumn. The loan will carry a 7.56% annual interest rate (0.63% monthly) with monthly interest payments and seasonal principal payments in October, November and December in 2022 and 2023. The financing benefits from a guarantee from the European Investment Fund which allows Capitalia to provide a buyback guarantee in case such guaranteed loan becomes default. In addition, the loan is secured with a personal guarantee from the owner.

Altogether the Company will receive financing with the European Investment Fund guarantee in the amount of EUR 31,180. However, the amount is divided into two separate financing projects, EUR 15,590 each.

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 loan benefits from a guarantee from the European Investment Fund which allows Capitalia to provide a buyback guarantee in case such a guaranteed loan becomes default.
  • The loan is secured with a personal guarantee of 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.
ID 6928-19-LV
Industry Agriculture
Location Latvia
Loan type Business loan
Term 17 months
Expected return 7.56%
Interest rate Monthly
Amortisation Each year in October, November and December
Risk grade A+ (100 out of 100)
Personal warranty From owner
Collateral Capitalia buyback
guarantee
Capitalia's cofinancing 1590
Target amount 15590
Successfully funded
This loan is already funded.
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