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.

LT0000029

Goal
19,000 €
Raised
19,000 €
100%
Return rate
13%
Rating
B
Period
24
Time left
LTV
70%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxxxx Xxšxxx
header_1 Declared Owned
Farming land--
Revenue
Net profit
Equity ratio
Project description
Documents
Payment schedule

Modestas Ruskys owns a mixed farm with 55 hectares of land. He grows oxen and grain such as summer wheat, winter wheat and triticale.

He also has two slurry tankers to provide services to other farmers. Modestas has a long-term agreement with one firm that is the biggest client, he also has some agreements with other farmers.

Therefore, the farmer needs one more tractor to grow as an agricultural contractor for slurry. He seeks to acquire a used tractor Valtra T171 for €27.225 and wants to borrow €19.000 for the purchase. Thus, the loan-to-value ratio of this heavy equipment collateral loan is 66%. 

Modestas already tried to get funding from HeavyFinance investor community. The right amount for the loan was reserved in only 3 hours, however, we had to cancel the project because the seller decided to sell the tractor to another client. Therefore, now he is buying a tractor from a bigger and more respected dealer of heavy equipment. 

According to the financial statement, by the end of 2019, the equity ratio of the farm was 67%. Besides, gross output was €32.000, while in 2018 it was €17.000.  



Interest rates:


Interest rate - 13%


Purpose of the loan:


To purchase tractor Valtra T171


Project investment return and interest payment:


  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-12-01
  • End date of the financing period: 2020-12-15, or until the loan is fully financed.
  • Investment: from 100 €
  • Annual return on investment: 13%.
  • Loan term: 24 months
  • The project owner will repay the principal according to the schedule below: 
  • March, 2021 (2 286 Eur)
  • June, 2021 (2 311 Eur)
  • September, 2021 (2 336 Eur)
  • December, 2021 (2 362 Eur)
  • March, 2022 (2 387 Eur)
  • June, 2022 (2 413 Eur)
  • September, 2022 (2 439 Eur)
  • December, 2022 (2 466 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.