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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.
LT0000027
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | - | - |
| Revenue |
| Net profit |
| Equity ratio |
Documents
Payment schedule
Farmer has a farm with 81 hectares of land, where he grows summer wheat, winter wheat among other grain crops.
He already has a tractor, seeding-machine and other heavy-duty vehicles. Now, having in mind that combine harvesters are cheapest right after the season, the farmer decided to buy one. He’s acquiring a used combine harvester John Deere 9660 iWTS for €64.130 including VAT. This heavy-duty vehicle was made in 2007.
The farmer seeks to get a loan for full amount for the purchase. To provide more safety to HeavyFinance lenders community, he will use this combine harvester and a tractor Claas Axion 850 (made in 2011) as collateral. independent valuation showed that its' price in the market is €46.000, therefore, loan-to-value ratio is 58%.
According to the balance sheet, in April 2020 the equity ratio of the farm was 83%. Furthermore, it got revenue of €47.000 last year and €45.000 in 2018. The farm has been operating profitably in both 2019 and 2018. Respectively it got €1.400 and €9.500 in profit.
Interest rates:
- Investing from 100 € - interest 10,4%
- Investing from 500 € - interest 11%
- Investing from 1 000 € - interest 11,4%
- Investing from 10.000 € - interest 12%
- Investing from 20.000 € - interest 12,5%
- Investing from 30.000 € - interest 13%
Purpose of the loan:
To purchase harvester John Deere 9600 iWTS
Project investment return and interest payment:
- Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-11-27
- End date of the financing period: 2020-12-11, or until the loan is fully financed.
- Investment: from 100 €
- Annual return on investment: up to 13%.
- Loan term: 36 months
- The project owner will repay the principal according to the schedule below:
- November, 2021 (21 164 Eur)
- November, 2022 (21 376Eur)
- December, 2023 (2 590 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.