Loan Description

This project provides HeavyFinance investor community with an opportunity to invest in an agricultural loan for a mixed ecological farm. The businessman has been sowing buckwheat, hemp, clover and also growing cattle.

The business is using 183,6 hectares of arable land, 52 hectares of which is owned by the businessmen himself. Over the past several years he also made some significant investments in modernizing the farm. Therefore, he has many heavy-duty vehicles that are not older than 4 years old. He has a combine harvester, tractor, plough, bale wrapper, cow milking equipment among the other needful items. 

Due to heavy investments in modernization, the businessman got short in capital to cover his liabilities. He asked a local bank to extend his loan but got rejected. After missing an instalment, seizure of property pledged as collateral (almost 52 hectares of arable land) started.

Seeing a conservative approach from banks, liquid assets pledged as collateral and farmer’s effort in getting from a difficult financial situation, we decided to offer HeavyFinance investor community to invest in this loan. With the money received the farmer would refinance the loan and pledge his land as collateral to investors in this project.  

Detailed Information

Collateral:

• 7 plots of arable land in Molėtai distrct and farm building. Total area of the land is 51,88 ha with a value of 181.900 € (according to independent property valuation made in 2019.11.25

Value of pledged property: 181.900 €

Loan to current asset value ratio: 55 %

Financial information

Gross output

• 2020     112.723 € including subsidies (67.324 €)
• 2019     116.188 € including subsidies (66.902 €)

Net profit

• 2020        25.653 €
• 2019     16.433 €

Equity ratio

• 2020        63%
• 2019        64%

The project owner will repay the principal according to the schedule below:

• 2022-02 (15.000 €)
• 2023-02 (42.271 €)
• 2024-02 (42.729 €)

The Interest will be paid monthly.

The Interest is calculated from the date on which the loan amount is paid.

Additional information:

Minimum loan term: 4 months 

Project owner

• Farmer Tomas Steniukynas
• Molėtai district, Alanta