The Company, established in 2004, is a biological agricultural company that grows biological oats, rapeseed, peas, and buckwheat. In total, the Company cultivates 537ha of land, out of which 162ha is owned by it, and the rest is rental land. Currently, as the active farming season is ongoing, the Company is experiencing a short-term gap in working capital due to sizable payments to suppliers for fuel, fertilizers etc. 

Therefore, the Company is seeking EUR 25,000 financing for 5 months to settle with suppliers and ensure seamless operations. The loan will carry a 6.96% annual interest rate (0.58% monthly) and it will be amortized at the end of the term from the harvest income. The financing 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. In addition, a personal guarantee from the owner is provided.

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.
• A personal guarantee from the owner will be provided.
• The Company is an existing client of Capitalia and has repaid 11 loans which have been serviced with excellent payment discipline.
• The Company has 19 years of experience in the agriculture industry.
• The Company has a significant equity capital of 1.3M and an equity-to-assets ratio of 66%.
• The Company has a track record of profitability with a significant net profit margin.