Fast growing construction company

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Summary
The Company was founded in 2009 and is engaged to the construction of residential buildings and renovation works. Since foundation, the Company has successfully implemented more than 300 construction projects all over Latvia. Starting as a small, regional construction company, by the year 2018 the Company was able to reach a turnover in excess of EUR 8 million, employing over 70 employees. In 2018 the Company has won a significant procurement for the construction of the residential complex in Riga for a total value of more than EUR 12 million. Half of the total agreement amount will still be executed in 2019. Due to deductions made and guarantees provided, as is typical in the construction industry, the Company is looking for additional financing of EUR 153,700 for 12 month-period as working capital to execute existing projects until payments from clients will be received and deduction funds will be released.  The loan will carry 15% annual interest rate (1,25% monthly) with monthly interest payments and principal payment starting with the fourth month. The loan is secured with personal guarantees from both beneficial owners of the Company.

There is a number of factors that make lending to the Company an attractive opportunity and the main highlights are the following:
  • Significant growth in turnover and profit in 2018;
  • The Company has been successfully operating for almost 10 years;
  • The Loan is secured with personal guarantees of both beneficial owners;
  • Loan repayment source is clear and based on existing contracts.
ID 11598-2019-1
Industry Construction
Location Latvia
Loan type Standart
Term 12 months
Expected return 15%
Interest rate Monthly
Amortisation Monthly starting with the fourth month
Risk grade C (72 out of 100)
Personal warranty Yes, 2
Collateral No
Capitalia's cofinancing 32700
Target amount 153700
Successfully funded