Working capital financing for profitable and fast-growing glamping business
 (1).png)
Summary
The Company started active business operations in 2020. The Company operates in two business directions –sale of module houses and short-term rental property management. First, the Company sells houses to investors, and then the Company rents them out for short term, splitting the income between the investors, the Company, and the owners of the land plots where the houses are located. The Company is seeking EUR 20,860 working capital financing for a 12-month period to set up and furnish 4 houses in a new location – Koknese, Latvia. Investors are offered 6.84% annual interest rate (0.57% monthly), with monthly amortization schedule. 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 with a personal guarantee from the owner.
- The business has two different revenue streams.
- Due to low fixed costs, the business has a respectable net profit margin of 25%.