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.

LT0000035

Goal
44,050 €
Raised
44,050 €
100%
Return rate
From 10.4%
Rating
B
Period
34
Time left
LTV
52%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
Ūxxxxxxxx (-ė) Xxxxxxxx Xxxxx
header_1 Declared Owned
Dirbama žemė--
Revenue
Net profit
Equity ratio
Project description
Documents
Payment schedule

Deividas Kinta has been running a family farm in Lithuania where he owns 50 ha of arable land and is renting around 120 ha of land as well. The farm grows spring triticale and winter triticale among other grain crops.

After a good harvesting season, the businessman decided to accelerate the growth of the farm by purchasing more heavy equipment and preparing to buy some more land. At this stage, Deividas is buying a used combine harvester John Deere 9640 WTS for €42.350 including VAT. 

However, expansion requires extra capital, thus, the farmer is borrowing €44.050 from HeavyFinance community of investors to purchase this combine harvester and prepare it for the next season. This equipment loan is backed with two heavy-duty vehicles:
  • Used tractor John Deere 7920 made in 2004 (According to the independent evaluation, the price of this vehicle is €42.200)
  • Used combine harvester „John Deere 9640 WTS” (will be pledged as collateral after purchasing)
Therefore, the loan-to-value ratio is 52%
.

Financial situation

Sales revenue and subsidies
  • 2019 m. € 122.000
  • 2018 m. € 79.000
  • 2017 m. € 76.000 
Net profit
  • 2019 m. €7.800
  • 2018 m. €11.900
  • 2017 m. €37.200 
Equity ratio
  • 2019 m. 23,3%
  • 2018 m. 13,3%
  • 2017 m. 24,3% 

Interest rates:


  • Investing from 100 € - interest 10,4%
  • Investing from 1 000 € - interest 11%
  • Investing from 5.000 € - interest 12%
  • Investing from 10.000 € - interest 12,5%
  • Investing from 15.000 € - interest 12,8%


Purpose of the loan:


To purchase harvester John Deere 9640 WTS


Project investment return and interest payment:


  • Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-12-09
  • End date of the financing period: 2020-12-23, or until the loan is fully financed.
  • Investment: from 100 €
  • Annual return on investment: up to 12,8%.
  • Loan term: 34 months
  • The project owner will repay the principal according to the schedule below: 
  • October, 2021 (14 557 Eur)
  • October, 2022 (14 683 Eur)
  • October, 2023 (14 830 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.