The Company, established in 2020, is an adult education company. The Company has 2 business directions: organizing educational training for companies and providing online education to private individuals. Since summer is a low season, the Company’s income has decreased in August. Therefore the Company is seeking EUR 13,750 financing for 6 months to continue the development of its platform. Investors are offered a 6.6% annual (0.55% monthly) interest with monthly interest payments and principal repayment starting from the 4th month. Principal payments are postponed to the period when the Company expects a significant increase in sales. 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.
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 guaranteed loan becomes default.
• The loan is secured by a personal guarantee from the owner.
• The Company has a reputable owner and manager with over 10 years of experience in the industry.

This loan is fully secured by EIF guarantee - 100% of investors principal and up to 3 months of interest repayment is guaranteed by the European Investment Fund (EIF). 

In December of 2018 Capitalia has entered into a partnership with the European Investment Fund (EIF) to provide a guarantee instrument to support small businesses in Latvia, Lithuania and Estonia, for a total amount of EUR 10 million. The European Investment Fund is an agency that was established by the European Investment Bank and European Union for the provision of financing to SMEs across the member countries.

How does the EIF guarantee work?

The EIF guarantee covers the principal and up to three months of interest for defaulted and restructured loans. Each quarter, Capitalia will make calls to the EIF regarding its obligations of the guarantee and two months after the call is made, the payments from the EIF will be made to investors who have funded the loan with a guarantee that has defaulted or was restructured.

Furthermore, for all loans with the EIF guarantee, Capitalia will maintain a 10% skin in the game. This is instead of the usual 3-10%, which it has for its other loans available to investors. The EIF guarantee covers the other 90% of the loan which means that platform investors' share of the loan is fully covered by the guarantee. As a result, these loans offer exceptional security, but also will carry a lower net annual return of 4-8%.