Mūsų veiklą Lietuvoje prižiūri png

(EN) Startup made investing in heavy equipment loans available to everyone

2020-06-12

HeavyFinance, a Lithuanian FinTech company, launched a first crowdfunding platform, where anyone can invest in loans secured by heavy equipment. The company borrowed 150.000 Eur in three days after the official launch. 

Laimonas Noreika, founder and CEO of the company, explained that heavy-duty vehicles such as tractors, excavators, rollers, street sweepers, are less volatile than real estate in times of economic uncertainty. The price of these goods is more resistant to market fluctuations. Besides, heavy equipment can move through borders and it is fairly easy to find a buyer in a regionally or globally. The equipment can also be new or used, but in either case, the equipment purchased serves as collateral for the financing.

“Heavy equipment as collateral has never been an attractive option for banks and credit unions, even though, it is a very safe market. To protect investor’s money our company makes sure that papers for a chattel mortgage are signed, the item is insured with civic and comprehensive motor insurance and there is a GPS tracker on the heavy-duty vehicle. Therefore, we believe that investments in loans secured by heavy equipment will increasingly become a strong alternative to many traditional investment opportunities” said Laimonas Noreika.

Laimonas, a founder of peer-to-peer (P2P) lending platform FinBee, co-founded the company together with agriculture and farming equipment professional Rytis Darginavičius, a former technology journalist Darius Verseckas and experienced project manager Domantas Šiupšinskas.

First company’s listing was a business loan for Lithuanian heavy machinery retail and rental firm Nova Rent. The firm is borrowed 150.000 Eur to acquire a used combine harvester Claas Lexion 770 TT.

 “Farming has become a business that makes big demands on equipment and finance. Even if a farmer has the money to pay for the equipment, it may be wise to opt for heavy equipment financing in order to dedicate cash flow to more valuable channels. We are here to help farmers in meeting their financial demands” said Rytis Darginavičius, a co-founder of HeavyFinance. 

After the UK leaves the EU, Vilnius will become the biggest centre in the bloc for regulated fintech companies. In the Global FinTech Index, Lithuania is fourth in the world and second in Europe. Besides, in the FinTech Locations of the Future 2019–2020 ratings, Vilnius ranks first in terms of economic efficiency and seventh in terms of foreign direct investment in this area.

Pavyko

svg