Descripton

Introduction

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.

Interest:

• Investing from 100 € - interest 12,1%
• Investing from 500 € - interest 12,8%
• Investing from 1.000 € - interest 13,1%
• Investing from 2.000 € - interest 13,6%
• Investing from 5.000 € - interest 13,8%
• Investing from 10.000 € - interest 14,2%

Detailed Information

Collateral:

• a used combine harvester tractorJohn Deere 9669 WTS (made in 2004), which value is 46.300 € including VAT (according to independent property valuation)
• 12,81 ha of arable land in Anykščiai district, which value is 39.530 € (according to independent property valuation)

Value of morgaged property: 85.830 €

Loan to current asset value ratio: 59,42%

Financial information

Income

• 2020:      58.416 €
• 2019:      109.280 €

Net profit

• 2020:      -22.494 €
• 2019:      7.947 €

Equity ratio

• 2020:      25,9%
• 2019:      28,4%

The project owner will repay the principal amount of the loan with a residual value of 30% according to this schedule:

• 2021-12 (11.767 €)
• 2022-12 (11.900 €)
• 2023-12 (27.333 €)

The Interest will be paid monthly.

The Interest is calculated from the date on which the loan amount is paid.

Additional information:

Minimum loan term: 4 months

Project owner

• Farmer Osvaldas Gritėnas
• Kuzmiškiai village, Anykščiai district

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.