Seasonal financing for an experienced and profitable agricultural company (III)
Summary
The Company, established in 1998, is operating in the agricultural sector. It cultivates 350ha of land, from which 140ha are owned and 210ha are rented. The Company is growing 200ha of wheat, 20 ha of oat, 20ha onions, 30ha potatoes, 80ha rapeseed. The Company now invests its own working capital in preparation for the harvest season in autumn and for the next season - it pays employee salaries, while covering fertilizer and fuel expenses as well.
Therefore, the Company is seeking EUR 51,987 financing for 12 months to pay for fuel, fertilizers, and salaries for this and next seasons. The loan will carry a 14.88% annual interest rate (1.24% monthly) and it will be amortized monthly. Personal guarantee from the owner will be provided. The Company is an existing client of Capitalia, and has repaid 2 loans for the total amount of EUR 41,480 with an excellent payment discipline. The project risk rate is D (69 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:
- Owner of the Company will provide a personal guarantee for the loan.
- The Company has over 20 years of experience in the farming business.
- The Company’s turnover has been following a growing trend for the last 3 years.
- The Company receives regular state subsidies.
- The Company is an existing client of Capitalia with an excellent payment discipline.
Latvia 
Lithuania 
Estonia