Expansion financing for a logging and agricultural services provider (I)

Summary
The Company, established in 2007, provides various services related to agriculture, logging, and digging. It has its forester, harvester, equipment to prepare split, and 6 excavators. The Company's clients include agricultural, forestry, and construction companies. Currently, the Company is seeking EUR 23,625 financing for 36 months to purchase a tractor and recultivation cutter. Investors are offered a 6.6% annual (0.55% monthly) interest with a monthly amortization schedule. The loan is fully secured with a guarantee from the European Investment Fund as well as with a personal guarantee from the owner.

Altogether the Company will receive financing with the European Investment Fund guarantee in the amount of EUR 47,250. However, the amount is divided into two separate financing projects, EUR 23,625 each.

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
  • The loan is fully secured with the European Investment Fund guarantee and the owner’s personal guarantee.
  • The owner has over 10-year long experience in the industry.
  • The Company has a significant equity-to-assets ratio
ID 15402-1-LV
Industry Logging /
agricultural
services
Location Latvia
Loan type Business loan
Term 36 months
Expected return 6.60%
Interest rate Monthly
Amortisation Monthly
Risk grade A+ (100 out of 100)
Personal warranty Yes
Collateral Full guarantee from
European Investment
Fund
Capitalia's cofinancing 2625
Target amount 23625
Successfully funded