This loan project scored highest (A ranking – lowest risk) due to sustainable financial situation of the farmer, an impeccable reputation and exceptionally stable collateral. The farmer will use a piece of land with high fertility soil level as collateral. Therefore, collateral is worth at least 112.500 Eur.
Jolanta Kelpšaitė has been taking over a family business since 2013 from her father, who is a famous farmer in the region. Currently, family own 200 hectares of arable land and has rental contracts with a number of people for another 1.000 hectares of farming land.
The gross output of the farm exceeded 2840.000 Eur last year and reached more than 260.000 Eur in 2018. Meanwhile, personal assets worth was 518.000 Eur excluding subsidies worth 104.000 Eur.
Her long-term plan is to acquire more land with a high soil fertility rate to improve financial sustainability. According to her, there are many good offers to buy some arable land, therefore, she is planning to continue acquisitions for at least couple of years.
‘I threat a farm like a business, not a way of life. Maybe in the future I will start leasing part of the land to diversify the business’ said Jolanta, who grows wheat, rapeseed, oat and rye.
Jolanta want to borrow 77.500 Eur to acquire 26,5 hectares of arable land. Land used as collateral is worth at least 112.500 Eur.
Considering the specifics of the farm’s revenue stream, the principal amount will be paid to investors in parts in January and May of each year.
Interest rate - 9%
Purpose of the loan:
For acquisition of 26.05 hectare of agricultural land.
Project investment return and interest payment:
- Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-10-21
- End date of the financing period: 2020-11-04, or until the loan is fully financed.
- Investment: from 100 €
- Annual return on investment: 9%.
- Loan term: 38 months
- The project owner will repay the principal according to the schedule below:
- January, 2022 (15.269 Eur)
- May, 2022 (15.384 Eur)
- January, 2023 (15.499 Eur)
- May, 2023 (15.615 Eur)
- January, 2024 (15.733 Eur)
- The Interest will be paid monthly.