Agriculture loan

Agriculture loans are tailored to acquire capital for various purposes such as expansion, inventory purchase, equipment acquisition, hiring staff, or to manage day-to-day operational expenses. The terms and conditions of these loans vary depending borrower's creditworthiness, collateral, repayment tenure and other factors.

LT0003022

Goal
220,000 €
Raised
220,000 €
100%
Return rate
12%
Rating
B+
Period
51
Time left
LTV
67%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Xxxxxxx Xxxxxxxxxx
Xxxžxxxų x., Xxxxxxxėx xxx., Xxxšxxxxxxų x.
header_1 Declared Owned
Farming land277.62 ha150.00 ha
20242023
Revenue 303,434.00 € 249,856.00 €
Net profit 81,074.00 € -56,441.00 €
Equity ratio 33.98% -
Project description
Documents
Payment schedule
A farmer in the Kaišiadorys district began expanding his farm in 2010 but only started active farming in 2017. Since then, he has increased his arable land to almost 277 hectares (150 ha of which is owned) and now operates an organic crop farm. His wife is also engaged in farming, managing about 76 hectares of agricultural land, which brings the total family farm area to 353 hectares. The farmer employs one permanent worker and hires seasonal labor when needed. In addition, he has signed several contracts with the Elektrėnai municipality to maintain local roads during the winter using his own machinery.

The entrepreneur applies no-till farming methods, with the majority of the farmland cultivated with wheat, barley, and rapeseed. His equipment fleet includes three tractors, a combine harvester, a sprayer, a seeder, a disc cultivator, a trailer, and other necessary agricultural machinery.

This year, the farmer signed several crop purchase agreements at prices significantly above those quoted on the MATIF exchange. Harvesting is expected at the end of September and beginning of October. After the harvest, payment terms range from 30 to 60 days (November–December), which creates a considerable shortage of working capital and challenges in making timely loan repayments. Therefore, the farmer has requested financial assistance in the form of a loan. As collateral, he has pledged three land plots in Pastrėvys (44.13 ha, 4.34 ha, and 7.2 ha), with a total appraised value of EUR 328,300 according to InReal.

Project risks

For this project, 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.