Working capital financing for an advertising company

Summary

The Company began operations in early 2018, primarily providing advertising services. Its core business involves purchasing and organizing advertisements on television, radio, and in print media such as magazines. The Company's main clients are wholesalers in the cosmetics and pharmaceutical sectors. In addition to its advertising activities, the Company is also engaged in real estate development. It owns and develops several land plots, which are currently pledged to Capitalia. Recently, the Company acquired an additional land plot where construction has already commenced. To maintain stable cash flow during the summer months, that is  typically a low season for its advertising business, the Company is seeking additional working capital financing.

Therefore, the Company is seeking EUR 31,263 financing for 12 months to ensure a stable cash flow in a low season. The loan will carry a 6,96% annual interest rate (0.58% monthly) and it will be amortized monthly. The shareholder of the Company and a related Company will provide  guarantees for the loan. The project risk rate is B (84 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:

  • The owner of the Company and a related Company will provide guarantees;
  • The management has over 12 years of experience in the marketing industry;
  • The Company has repaid over EUR 268,000 of loans with excellent payment discipline. In addition, the company providing the guarantee is also an existing Capitalia client with excellent payment discipline.
  • The Company has a strong equity-to-asset ratio of 60%.
ID 14954013-LT
Industry Advertising
Location Lithuania
Loan type Business loan
Term 12 months
Expected return 6.96%
Interest rate Monthly
Amortisation Monthly
Risk grade B (84 out of 100)
Personal warranty From a shareholder
and related company
Collateral No
Target amount 31263
Successfully funded
This loan is already funded.
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