The farmer got granted an individual guarantee of 80% provided by a governmental development institution Agricultural Credit Guarantee Fund. Individual guarantee means that in case of a default, the Fund pays the difference between the unpaid credit amount or any portion thereof, and the income received by the credit institution from the exaction. Please read more about individual guarantees and benefits this scheme provides for investors in our news section.
With this project, we provide HeavyFinance investors with the opportunity to invest in a top-ranking loan for a 0,42 hectares of land with a grain warehouse and other buildings. The loan will be secured by the pledge of two contracts for crops sale. The loan will be secured not only by pledging the plot and buildings, but also by an 80% individual guarantee approved by the state.
The farmer has been taking over a family business since 2013 from her father, who is a famous farmer in the region. Currently, the family owns 200 hectares of arable land and has rental contracts with many people for another 1.000 hectares of farming land.
The project owner’s long-term plan is to acquire more land with a high soil fertility rate to improve financial sustainability. According to her, there are many great offers to buy some arable land, therefore she is planning to continue acquisitions for at least a couple of years.
‘I treat 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 the farmer, who grows wheat, rapeseed, oat, and rye.
With this project, the farmer is borrowing 40.000 € to increase working capital.
This is not a farmer's first project on the HeavyFinance platform - the businesswoman has a loan portfolio of 117.500 €. The agri-entrepreneur pays her debts and interest on schedule.
Area of declared land: 756,65 hectares