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.

LT0000012

Goal
132,000 €
Raised
132,000 €
100%
Return rate
From 10.67%
Rating
B
Period
3
Time left
LTV
70%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
XXX "Xxxxxx", Xxxxx Xxšxxxxčxxx
header_1 Declared Owned
Farming land--
Revenue
Net profit
Equity ratio
Project description
Documents
Payment schedule

Initially Magava, UAB is a pond digging company, which got into the retail business of heavy-equipment several years ago. Recently, the company decided to expand its’ operations into a heavy-equipment rental business and put the first excavator for lease.  

After harvesting season, when prices of harvesters plummet, the company decided to acquire a harvester Claas Lexion 770 TT Cemos made in 2013. The company is planning to prepare it for the next season and put it on lease. This heavy-duty vehicle cost almost 189.000 Eur including VAT. Therefore, Magava want to borrow 132.000 Eur and use this Claas Lexion 770 TT Cemos as collateral.  

 Sales revenues of Magava exceeded 447.000 Eur last year in comparison to 630.000 Eur in 2018. Furthermore, the company got 30.000 Eur loss in 2019 and 22.000 Eur loss in 2018.   

Interest rates:


  • Investing from 100 € - interest 10,5%
  • Investing from 1.000 € - interest 11%
  • Investing from 5.000 € - interest 11,5%
  • Investing from 10.000 € - interest 12%
  • Investing from 30.000 € - interest 13%

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:


To purchase a 2013 harvester Claas Lexion 770 TT Cemos.


Project investment return and interest payment:


  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-09-23
  • End date of the financing period: 2020-10-07, or until the loan is fully financed.
  • Investment: from 100 €
  • Annual return on investment: from 10,5% to 13%.
  • Loan term: 24 months
  • Interest is paid on yearly basis and the first interest payment is made one year after the loan disbursement date. Principle will be repaid with the last interest 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.