Working capital financing for an experienced forestry company
Summary
The Company, founded in 1996 and based in Parnu, Estonia, operates in the logging sector, focusing on timber harvesting from its own land and acquired felling rights. It previously offered log house construction services, but discontinued this service due to weak demand. The business is run by a small team of six employees. Currently, the Company is acquiring new felling rights and seeks additional working capital to cover the cost gap between harvesting activities and revenue generation.
Therefore, the Company is seeking EUR 62,000 financing for 24 months for working capital. The loan will carry a 7.68% annual interest rate (0.64% monthly) and it will be amortized monthly. The majority owner of the Company will provide a personal guarantee. The loan will be secured with a mortgage on two arable land properties with an estimated value of EUR 113,119. The project risk rate is A (90 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 Company has been operating for nearly 30 years and has delivered consistent profits for the past decade;
- The loan will be secured with a mortgage on two arable land properties with an estimated value of EUR 113,119;
- The Company has a healthy equity to assets ratio of 0.82.
- The majority owner of the Company will provide a personal guarantee for the loan.
Latvia 
Lithuania 
Estonia