Loan Description

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.

Loan terms

• Loan amount: 64 130 €
• Loan term: 36 months
• Minimum loan term: 4 months
• Value of mortgaged property: 110 130 €
• Loan to current asset value ratio: 58%
• Risk group: B
• The project owner will repay the principal according to the schedule below: 
• November, 2021 (21 164 Eur)
• November, 2022 (21 376Eur)
• December, 2023 (21 590 Eur)
• The Interest will be paid monthly.

Loan protection

• A chattel agreement will allow the buyer to use the equipment while maintaining a safe position for the seller at the same time;
• A chattel papers will be signed for tractor Claas Axion 850 and harvester John Deere 9600 iWTS
• Civil and Comprehensive vehicle insurance.

Project owner

• Farmer Antanas Krakys
• Address - Pocaičių k. Židikų sen., Mažeikių r.