Loan secured by a Case IH PUMA 200 CVX tractor

 Agriculture loan
Project listed: 18.12.2020
Biržai,
Lithuania
11.2%
Annual yield
50%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
23.01.2021
Pending

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Descripton

Introduction

 

Geri grūdai, UAB, manages a 423 ha farm in Pasvalys district. The farm currently cultivates potatoes, rapeseed, wheat, and other crops.

 

Geri grūdai uses two 2019 and 2020 tractors, a loader, and other equipment for daily works on a farm.

After two successful seasons, the company is preparing for the new one and plans to acquire more arable land and purchase fertilizers.

 

Therefore, to increase working capital the company is borrowing €50,000 from the HeavyFinance investors community. The loan will be repaid within 12 months and the annual investment return is 11%.

 

To secure the loan, Geri grūdai, UAB, will pledge a Case IH PUMA 200 CVX tractor. The value of the pledged property is not less than € 100,000 and the loan-to-value ratio is not more than 50%. On 30 October 2019, the tractor was valued at € 129,349 by independent property valuers. A new valuation of the property is currently underway, so the exact current value of the tractor will be known later.

 

Financial situation

 

Turnover

2020 - 11         €335.104

2019                €484.567

 

EBITDA

2020 - 11        €188.164,96

2019               €173.169,18

 

Equity ratio

2020 - 11         27%

2019                21%

 

An equity ratio is a financial indicator that compares a company's equity to its assets. This ratio shows the share of equity in the capital structure.

 

Purpose of the loan:

 

To increase working capital

 

Project investment return and interest payment:

 

  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-12-16
  • End date of the financing period: 2020-12-30, or until the loan is fully financed.
  • Investment: from 50 €
  • Annual return on investment: 11%.
  • Loan term: 12 months
  • Interest on the loan amount is calculated from the date (inclusive) on which the loan amount is paid to the project owner.
  • The project owner will repay the loan amount with the last payment and interest will be paid monthly.

Detailed Information

Loan terms:

 

  • Loan amount: 50 000 €
  • Loan term: 12 months
  • Minimum loan term: 4 months
  • Value of mortgaged property no less than 100 000 €
  • Loan to current asset value ratio no more than 50%
  • Risk group: A
  • Interest on the loan amount is calculated from the date (inclusive) on which the loan amount is paid to the project owner.
  • The project owner will repay the loan amount with the last payment and 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 paper will be signed for tractor “Case IH PUMA 200 CVX".
  • Civil and Comprehensive vehicle insurance.

Project owner

  • Geri grūdai UAB
  • Address Sodų g. 2A, Aukštikalniai, Pasvalio r.

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.

Project originated by:

Documentation

11.2%
Annual yield
50%
LTV
Term: 12 months
Mortgage rank:
First
Interest payment schedule:
Monthly
Interest payments
23.01.2021
Pending
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