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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.
LT0000006
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | - | - |
| Revenue |
| Net profit |
| Equity ratio |
Documents
Payment schedule
Donatas started farming five years ago in Minge, a tiny village located close to the seaside of Lithuania. Currently, in 70 hectares of agricultural land, the farmer has more than 110 beef cattle, including breeds like Limousine and Aubrac. He seeks to acquire four items of farming equipment to increase the efficiency of the daily routine on the farm and to expand his operations. Donatas needs financing to buy these items:
- Fixed chamber baler McHale F5400c
- Bale wrapper Pronar Z245,
- Lawn mower EasyCut R320
- Tractor Case IH Farmall 105 C
The total price of these items is 120.000 Eur and the farmer already paid 13.000 Eur deposit. Furthermore, he will receive 50.000 Eur in support from the National Paying Agency under the Ministry of Agriculture of the Republic of Lithuania. Consequently, he is looking for further financing of 52.000 Eur to acquire the needed equipment and is willing to use all items as collateral to get a chattel mortgage. The loan-to-value ratio of this chattel mortgage stands at 43%.
Considering the schedule to pay the loan back, an annuity contract with a balloon payment of 26.000 Eur.
Interest rates:
- Investing from 100 € - interest 11%
- Investing from 1.000 € - interest 11,3%
- Investing from 5.000 € - interest 11,6%
- Investing from 10.000 € - interest 12,5%
- Investing from 30.000 € - interest 13,5%
At present, the Platform Operator does not make it possible to transfer claim rights that are acquired by concluding financing transactions through the Platform. (No secondary market)
Purpose of the loan
The aim: to purchase four items of farming equipment. These involve fixed chamber baler McHale F5400c, bale wrapper Pronar Z245, lawnmower EasyCut R320 and tractor Case IH Farmall 105 C.
Project investment return and interest payment
- Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-07-22
- End date of the financing period: 2020-08-05, or until the loan is fully financed.
- Investment: from 100 €
- Annual return on investment: from 11% to 13,5%.
- Loan term: 18 months
- Loan schedule will be an annuity with a 26.000 € balloon payment.
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.