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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.
BG0000920
| Project owner | Address |
|---|---|
| Milena Hristova, Agrotonik Ltd. | Shumen Region, Shumen Town |
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 420.00 ha | 50.00 ha |
| 2021 | 2020 | |
|---|---|---|
| Revenue | 381,791.00 € | 331,640.00 € |
| Net profit | 23,500.00 € | -8,000.00 € |
| Equity ratio | 31.23% | - |
Documents
Payment schedule
With this project, we invite you to invest in the development of a crop producer company operating in the Shumen Region.
The company Agrotonic cultivates 420 hectares of land, of which 50 hectares are owned. This year, the company has allocated 140 hectares for wheat, 120 hectares for barley, 100 hectares for corns, 20 hectares for peas, 40 hectares for lentils.
To optimise the farm works, the company has all the necessary equipment. There are two permanent workers and, when necessary, they hire more seasonal workers.
The company has shown great improvements as they continuously extended the cultivated area by 15 hectares over the past years. Now, they are looking for external finance to help cover operational expenses.
Important remarks:
It's important to note that the company has experienced turbulent years from 2019 to 2020 and has failed to fulfil its obligation to DBank, which eventually led to the loan agreement termination. Due to this, The company has received a court judgment. In June 2021, the new term of repayment had been agreed upon between the project owner and the Dbank, the beneficiary of the case. The total amount to be paid is 50 000 €, the company undertakes to make payments in 24 monthly instalments from June 2021 to May 2023.
To secure the loan, the project owner will pledge a combine harvester, which gives 68% LTV. Moreover, the company's director also provides a personal surety in case of default. To further evaluate the ability to repay the loan, HeavyFinance has looked into the market value of farm buildings and land which are the personal asset of the project owner. The property's value is 206 184 € which is exceeding the total amount of the existing loan with Dbank and this loan on the HeavyFinance platform.
In addition, the company receive 80 000 € in subsidy. The first half will be transferred to the company in December 2022 and the remaining amount is scheduled for March 2023, this will strengthen the company's cash flow and ensure the repayment ability of the company.
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.