EvoEstate description

As per our investors' inquiries, we are proud to introduce the first alternative crowdfunding product - Heavy Machinery funding. The deal is originated by HeavyFinance is regulated by the Bank of Lithuania. You can read more about Evo alternative and HeavyFinance in this blog article.

The farmer which is borrowing is generating close to 200.000 euros per year in production. HeavyFinance finances 66% of the value of the machinery. Because this is the first deal on EvoEstate by HeavyFinance, the HeavyFinance is offering 12.5% (2.3% interest increase) to all investors investing via EvoEstate.

Descripton

Introduction

Ignas Riauba has a mixed ecological farm in Lithuania, Klaipėda county. He grows more than 100 dairy cows and other cattle. Furthermore, he grows spelt wheat, oats, buckwheat among other grain crops.

After more than six years of farming, he owns more than 100 ha of arable and rents more than 350 ha of arable land. Ignas is planning to acquire more land in the future, however, as for now, he decided to invest in buying more heavy equipment. 
Therefore, he is buying tracked excavator Case cx180D made in 2016. This heavy-duty vehicle will be employed to cut bushes and clean the land for himself and other farmers around him. 

According to the independent valuation company, this tracked excavator is worth €125.235. It was used for 2.207 moto hours and is in a good condition. 

To acquire this heavy-duty vehicle Ignas is borrowing €82.750 from the HeavyFinance investor community. Consequently, loan-to-value ratio is 66%. Besides, the principal amount will be paid back to investors in yearly installments, while the interest will be paid monthly. 

The financial situation of the farm

Gross output

• 2019 m. €184.000
• 2018 m. €196.000

Net profit

• 2019 m. €99.000 
• 2018 m. €243.000

Equity ratio

• 2019 m. 55,48%
• 2018 m. 64.29%

Purpose of the loan:

To purchase crawler excavator Case CX 180D.

Project investment return and interest payment:

• Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-12-08
• End date of the financing period: 2020-12-22, or until the loan is fully financed.
• Investment: from 50 €
• Annual return on investment: 12,5%.
• Loan term: 36 months
• The project owner will repay the principal according to the schedule below: 
• December, 2021 (27 309 Eur)
• December, 2022 (27 583 Eur)
• December, 2023 (27 858 Eur)
• The Interest will be paid monthly.

Detailed Information

Loan terms:

• Loan amount: 82 750 €
• Loan term: 36 months
• Minimum loan term: 4 months
• Value of mortgaged property: 125 235 €
• Loan to current asset value ratio: 66%
• Risk group: A
• The project owner will repay the principal according to the schedule below: 
• December, 2021 (27 309 Eur)
• December, 2022 (27 583 Eur)
• December, 2023 (27 858 Eur)
• The Interest will be paid monthly.

Loan protection:

• A chattel agreement will allow the buyer to use the equipment while maintaining a safe position for the seller at the same time;
• A chattel papers will be signed for crawler excavator Case CX 180D
• Civil and Comprehensive vehicle insurance.

Project owner

• Farmer Ignas Riauba
• Address - Griežų k. Klaipėdos r. sav. 

Project risks

Project risks:

• There is a risk of losing all the profits made and the funds invested.
• In this case, if the Project Owner fails to fulfill its obligations, the Platform Operator will take all necessary measures to protect the interests of investors and use the provided collateral, but the Platform Operator does not guarantee the full fulfillment of the Project Owner's obligations.
• Financial agreements are not subject to the insurance protection established by the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania.

Additional information:

If the project owner does not collect the amounts to be financed, the collected funds will be returned to the funders by transferring them to the account from which they were transferred. The Platform Operator also has the right to offer the Project Owner to reduce the amount to be financed during the Project financing term or to extend the Project financing term. In this case, if the amount to be financed is reduced or the term of financing the Project is extended, it shall in all cases be announced on the Platform and the Fund's financiers shall be informed.