This project provides the HeavyFinance investor community with an opportunity to invest in the development of the Lithuanian farm. The funds are collected to purchase 15,57 ha of arable land and to increase working capital. The purchased land plot will be pledged to secure the loan.
The project owner has been engaged in mixed farming since 2007. He is continuously expanding the farming territory and now the farm has 347,82 ha of arable land, two tractors, a combine harvester among other equipment needed for farming.
Part of this land is being used to raise sheep. It is a quite uncommon farming activity in Lithuania, however, an increasing number of farmers start raising domestic sheep due to higher prices of lamb in international markets. Furthermore, another part of the land is dedicated to ecological farming, therefore the farm receives more money in subsidies because ecological farming is one of the EU-supported priorities.
The farm’s financial statements show the difference between 2019 and 2020 income since 2020 income is significantly lower. It happened due to the fact that harvest buyers did not have sufficient funds due to the consequences of the COVID-19 pandemic to buy the contracted harvest worth 52.150 € in 2020. The farmer received this amount of money only in 2021, so this fact is not reflected in the 2020 financial statements.
To implement all the farm's development plans, the farmer decided to borrow from the HeavyFinance investor community. There will be several stages of this project, during which the entrepreneur is planning to borrow a total of 98.000 €. During the first stage, the farmer borrows 28.000 €. The funds are collected for the expansion of the farm's territory - the farmer intends to acquire a 15.57 ha plot of land, for which the major part of the amount has already been paid. From the borrowed funds, the farmer will allocate 8.000 € for the final redemption of the plot. The remaining 20.000 € will be used to increase working capital.
This is not the first farmer's project on the HeavyFinance platform - the project owner has previously borrowed 83.000 € to increase working capital. The entrepreneur makes the payments on time.
The risk class for this loan provided by the originator is C.
Value of mortgaged property: 46.700 €
Loan to current asset value ratio: 59,96 %
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
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.
|18.04.2021||Paid||No||13 April 2021, 14:54|