Update from the originator:
The originator would like to inform you that the money you invested in a loan Loan for the expansion and development of the farm (Stage III) will be transferred directly to the farmer’s bank account by the end of this week. Consequently, right after the successful payment transaction the billing period for the project owner will begin.
The originator makes every effort to shorten the period of time taken to collect all the documents and start the billing cycle for project owners. Therefore, the originator will soon present new rules to grant even more security for our investor community.
This project provides the HeavyFinance investor community with an opportunity to invest in the development of the Lithuanian farm. The funds are collected to increase working capital. A John Deere 9660 combine harvester and 12,81 ha of land in Anykščiai district 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 three stages of this project, during which the entrepreneur is planning to borrow a total of 98.000 €. During the third stage, the farmer borrows 51.000 € 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. Besides, during the first and the second stages, the farmer borrowed 47.000 € for the purchase of a used tractor Case IH MX200, 15.57 ha plot of land, and for working capital increase.
The risk class for this loan provided by the originator is C.
Value of morgaged property: 85.830 €
Loan to current asset value ratio: 59,42%
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.
|02.05.2021||Paid||No||16 April 2021, 12:29|