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.

LT0000017

Goal
77,500 €
Raised
77,500 €
100%
Return rate
9%
Rating
A
Period
38
Time left
LTV
70%
Country
Lithuania
Loan purpose
Land purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxxx Xxxxxxxxė
Xxxxxxx, Xxxxxxx xxx. Xxxšxxxxxxų x. xxx.
header_1 Declared Owned
Farming land1200.00 ha200.00 ha
20192018
Revenue 63,360.00 € 74,308.00 €
Net profit 21,997.00 € -
Equity ratio 45% -
Project description
Documents
Payment schedule

This loan project scored highest (A ranking – lowest risk) due to the sustainable financial situation of the farmer, an impeccable reputation and exceptionally stable collateral. The farmer will use a piece of land with a high fertility soil level as collateral. Therefore, collateral is worth at least 112.500 Eur.  

The farmer has been taking over a family business since 2013 from her father, who is a famous farmer in the region. Currently, the family owns 200 hectares of arable land and has rental contracts with many people for another 1.000 hectares of farming land.  

The gross output of the farm exceeded 2840.000 Eur last year and reached more than 260.000 Eur in 2018. Meanwhile, personal assets worth was 518.000 Eur excluding subsidies worth 104.000 Eur. 

Her long-term plan is to acquire more land with a high soil fertility rate to improve financial sustainability. According to her, there are many good offers to buy some arable land, therefore, she is planning to continue acquisitions for at least a couple of years.  

‘I threat a farm like a business, not a way of life. Maybe in the future, I will start leasing part of the land to diversify the business’ said the farmer, who grows wheat, rapeseed, oat and rye.  

She want to borrow 77.500 Eur to acquire 26,5 hectares of arable land. Land used as collateral is worth at least 112.500 Eur.  

Considering the specifics of the farm’s revenue stream, the principal amount will be paid to investors in parts in January and May of each year.  



Interest rates:


Interest rate - 9%


Purpose of the loan:


For acquisition of 26.05 hectares of agricultural land.


Project investment return and interest payment:


  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-10-21
  • End date of the financing period: 2020-11-04, or until the loan is fully financed.
  • Investment: from 100 €
  • Annual return on investment: 9%.
  • Loan term: 38 months
  • The project owner will repay the principal according to the schedule below: 
  • January, 2022 (15.269 Eur)
  • May, 2022 (15.384 Eur)
  • January, 2023 (15.499 Eur)
  • May, 2023 (15.615 Eur)
  • January, 2024 (15.733 Eur)
  • The Interest will be paid monthly.

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.