Specialized retailer of hunting goods in Latvia

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Summary
The Company was founded in 2008 and is a reputable expert retailer of a wide range of hunting and active leisure goods and equipment such as clothes, riffles, optics, ammunition and other hunting gear. The Company has 17 employees and  5 retail stores, including one store in Lithuania. In addition to retail business, the Company also has a deer farm in Latvia, where deers are grown for sales purpose, forming up to 10% from total turnover every year. The Company belongs to a group of entities operating in other industries such as real estate, construction and equipment rental business.
 
Part of the Company's liabilities is loan from a related company that now requires the capital for its own business development. As a result the Company is seeking short term working capital financing of EUR 408,980 for a 5-month period. Investors are offered 13.92% annual interest rate (1.16% monthly) with monthly interest payments and principal repayment at the end of the term. The loan will be repaid by refinancing in the bank or own cash flow after the end of high season. The loan is secured with personal guarantees from the only owner of the Company and a related company, that owns significant real estate property with net (free of debt) worth of EUR 2 million. 

There is a number of factors that make co-financing the Company an attractive opportunity and the main highlights are the following:
  • The Company has been successfully operating in the industry for over 10 years;
  • The Loan is secured with personal warranties from the owner and a related company with a significant base of assets;
  • The Company has a low level of financial debt and significant equity capital amount;
  • The Company has exceptionally good reputation in its market segment. 
 
ID 12637-2019-1
Industry Retail
Location Latvia
Loan type Bullet
Term 5 months
Expected return 13.92%
Interest rate Monthly
Amortisation At the end of the term
Risk grade C (79 out of 100)
Personal warranty From owner and related company
Collateral No
Capitalia's cofinancing 21780
Target amount 408980
Successfully funded