The Company was founded in 1996 and operates a sizable 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 1,873ha of land out of which approx 1,230ha is owned by it. Another 363ha 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; additional financing would help to support the cash flow until the harvest season. 

Therefore, the Company is seeking EUR 102,700 in financing for 9 months to have sufficient seasonal working capital to settle with suppliers for fertilizers, plant protection products, petrol, and other goods. The loan will carry an 10.92% annual interest rate (0.91% monthly) and it will be amortized at the end of the loan term from the seasonal income. The sole shareholder and a related company with equity capital of EUR 749,000 will provide guarantees for the loan.  The project risk rate is B (82 out of 100).

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

• The Company is a repeat client of Capitalia and has repaid 7 loans of more than EUR 1 million in total. 
• The Company successfully operated the business for almost 30 years.
• The Company has a strong equity capital of EUR 3.58 million.
• The loan repayment is based on seasonal income from grain and guaranteed state subsidies.
• Since 1996, the Company has been operating with profits 26 out of 28 years.
• The shareholder and a related company will provide guarantees for the loan.