Descripton

Introduction

This project provides the HeavyFinance investor community with an opportunity to invest in the development of the Lithuanian organic farm. The collected funds will be used to purchase a new tractor Massey Ferguson MF7719S. The loan will be secured by a first-rank mortgage on the purchased equipment.

The businesswoman has already engaged in mixed farming for 15 years and now successfully manages a 147,75 ha organic farm in the Anykščiai district. 85 ha of farmland is covered by organic crops, and the rest is wooded areas and meadows, where beef cattle graze. Now there are 31 beef cattle on the farm's pastures.

With the start of the season's preparations, the farmer aims to purchase a new Massey Ferguson MF7719S tractor to maintain the farm’s efficiency. 30% of the tractor’s value will be covered by the farmer herself and the remaining 95.700 € she is planning to borrow from the HeavyFinance investor community. To finance the tractor, the farmer has already received the National Paying Agency (NPA) support, which will reimburse up to 50.000€ of the total eligible costs of the project. The project owner will receive support after submitting the equipment acquisition documents to the NPA.

The current heavy-equipment fleet of the farm consists of a combine harvester, which was also purchased with NPA support, and a trailer for transporting grain.

The development plans of the farm do not stop at the purchase of new equipment - this month the farmer plans to acquire a 7.09 ha plot of land and to increase the number of beef cattle by mid-autumn.

The risk class for this loan provided by the originator is B.

Interest:

• Investing from 100 € - interest 10,8%
• Investing from 500 € - interest 11,4%
• Investing from 1.000 € - interest 11,7%
• Investing from 2.000 € - interest 11,9%
• Investing from 5.000 € - interest 12,2%
• Investing from 10.000 € - interest 12,4%
• Investing from 20.000 € - interest 12,7%
• Investing from 30.000 € - interest 13,1%

Detailed Information

Collateral:

• New tractor Massey Ferguson MF7719S, which value is 136.730 € including VAT (according to received commercial offer from East West Argo, AB)

Value of pledged heavy equipment: 136.730 €

Loan to current asset value ratio: 70 %

Financial information

Income

• 2020:      51.021 €
• 2019:      16.688 €

Net profit

• 2020:      15.071 €
• 2019:      605 €

Equity ratio

• 2020:      59,73%
• 2019:      47,62%

The project owner will repay the principal according to the schedule below:

• 2022-03 (31.583 €)
• 2023-03 (31.899 €)
• 2023-09 (32.218 €)

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 Genė Vida Girniukaitienė
• Piktagalis 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.