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.

LT0000028

Goal
42,993 €
Raised
42,993 €
100%
Return rate
up to 13.1%
Rating
B
Period
36
Time left
LTV
64%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxxxx Xxxxx
header_1 Declared Owned
Farming land--
Revenue
Net profit
Equity ratio
Project description
Documents
Payment schedule

Vygandas Majus is a forester working under an individual activity certificate. He works close to a small town in Lithuania called Šilalė as a subcontractor to several firms winning public tenders for trees cutting.


The businessman recently signed some contracts for the next year, therefore, is buying a used harvester John Deere 1270 made in 2005. According to independent valuation, the price of this heavy-duty vehicle is €55.800. He got an offer to buy it for €48.400.


In order to make this purchase and prepare for work, the forester aims to get a heavy equipment collateral loan of €50.600. He will use this John Deere 1270 and a forwarder Timberjack 1210B, which costs €23.500. Therefore, the loan to value ratio is 64%.


In 2019 Vygandas got €41,700 in revenue. Furthermore, his financial statement shows that the businessman got €83.000 in revenue this year. Due to the increasing demand for his services, he is expecting a sharp growth for 2021.


Interest rates:


  • Investing from 100 € - interest 11%
  • Investing from 1 000 € - interest 11,5%
  • Investing from 5.000 € - interest 12%
  • Investing from 20.000 € - interest 12,6%
  • Investing from 30.000 € - interest 13,1%


Purpose of the loan:


To purchase harvester John Deere 1270D


Project investment return and interest payment:


  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-11-30
  • End date of the financing period: 2020-12-14, or until the loan is fully financed.
  • Investment: from 100 €
  • Annual return on investment: up to 13,1%.
  • Loan term: 36 months
  • The borrower will repay the loan amount in monthly annuity payments with a 3-month deferral of the principle.
  • 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.