This project provides the HeavyFinance investor community with an opportunity to finance a working capital loan for a well known used heavy equipment rental company Nova rent.
Launched in 2017, Nova rent is a leader in used equipment rental and service in Lithuania, which is successfully expanding its operations abroad. HeavyFinance investor community has already fully invested in three loans listed in the platform, two of which (150,000€ and 45,000€ worth) have been fully repaid and for the third one (59,000€) payments have been made on time. The company is now borrowing funds to increase working capital.
This is the first part of the company's financial plan to increase working capital for a rapid expansion. There are two more investment projects to be listed on the platform in a foreseeable future.
The company's available stock for 166,000€ is pledged to secure the first stage loan.
Fixed annual interest rate - 11,1%
The risk class for this loan provided by the originator is A.
Loan to current asset value ratio: 60%
* The company has a total stock of €1.33M
The company pledges € 166,000 of its inventory to secure this project.
The project owner will repay the full amount of the loan in 2021, December.
The interest will be paid monthly.
The Interest is calculated from the date on which the loan amount is paid.
Minimum loan term: 4 months
The owner of this Project is considered to be a person related to the Platform operator (its shareholder). The Platform Operator shall ensure that all measures are taken to ensure that the Project Owner has access to funding on market terms and that the Project Owner's obligations are properly met. In the event that the Project Owner fails to comply with its requirements under the crowdfunding agreement, the Platform Operator undertakes to take all necessary steps to protect and properly represent the interests of the investors and to act on the best terms for the investors.
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.