Working capital financing for a growing biological grain farm

Summary

Established in 2014 and based in Kuldīga municipality, the Company operates an organic grain farm, focusing exclusively on the cultivation of organic winter wheat, barley, rye, and vetch. The farm has recently expanded its operations by securing a substantial amount of additional agricultural land, primarily through lease agreements obtained on favorable terms. As a result, the total area under cultivation now amounts to 903 hectares. To support this expansion, the Company is seeking working capital financing to cover seeding costs and lease payments for the newly acquired land, as land subsidies will only be disbursed later in the year.

Therefore, the Company is seeking EUR 52,400 financing for 27 months for working capital needs. The loan will carry a 8.16% annual interest rate (0.68% monthly) and it will be amortized in four payments in October and November 2026 and October, November 2027. Loan will be secured with a pledge on five units of movable property which includes two tractors and three tractor trailers with an estimated value of EUR 80,991. The project risk rate is B (85 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:

  • A pledge on movable property with estimated value of EUR 80,991, which includes two tractors and three tractor trailers, will be provided.
  • A personal guarantee from the owner will be provided.
  • The Company has 19 years of experience in the agriculture industry.
ID 15001002-LV
Industry Farming
Location Latvia
Loan type Business loan
Term 27 months
Expected return 8.16%
Interest rate Monthly
Amortisation In four payments in October and November 2026 and October, November 2027
Risk grade B (85 out of 100)
Personal warranty From the owner
Collateral Yes, on five units
of movable property
which includes two
tractors and three
tractor trailers
with an estimated
value of EUR 80,991
Target amount 52400
Successfully funded
This loan is already funded.
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