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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.
LV0000940
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 66.00 ha | 22.00 ha |
| 2021 | 2020 | |
|---|---|---|
| Revenue | 42,995.00 € | 28,112.00 € |
| Net profit | 13,626.00 € | 7,142.00 € |
| Equity ratio | 79.39% | - |
Documents
Payment schedule
This project provides HeavyFinance investors with the opportunity to contribute to the Latvian company’s development. The loan will be used to acquire a more powerful tractor to optimise the farm works.
The tractor will be registered as collateral together with 6,9 ha of the farmland. The company is still making the decision on which tractor to be purchased, the minimum value of the purchasing tractor is 16 000 €. In case the company decides to purchase a tractor with the value higher than 16 000 €, the condition will be improved for investors due to the lower LTV ratio. The land value was evaluated with the conservative approach at 4,5K per 1 hectare minus 25% precaution (the average price in the area is 5k per 1 hectare).
The company MADARAS-17, IK cultivates a 66 ha farm, which mostly cultivates grains. Some farm plots are dedicated to growing vegetables. The company is actively engaged in poultry farming as well - there are 800 chicken birds on the farm at the moment. The farm’s technical fleet consists of a tractor, a New Holland combine harvester with a 3m header, a Kverneland 3-body plough, a sprayer, a fertilizer spreader, and a seed drill.
The company has a good record on the HeavyFinance platform with their previous loan, all instalments have been made in a timely manner with zero delays. On top of that, the company managed to early repay the loan it within one year.
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.