Petras Šiaučiūnas is a farmer who sold 250 sheep this year and plans a double increase in the number of sheep next year. He has the ambition to expand his farm to 1.000 sheep in several years. While growing operations he seeks to automatize some of the processes by acquiring sheep handling system.
The equipment includes pasture gates, weighing system, animal husbandry equipment, livestock waterers among other parts and gadgets. The whole system cost is 32.900 Eur including VAT, therefore, he is borrowing 22.000 Eur to make this purchase and use it as collateral. Consequently, loan-to-value ratio is 67%.
The equipment is made by the company Patura, a family business found in 1965 in Germany. Lithuania based seller Avena, UAB will bring and prepare the system for work within a month after the payment is made.
Petras got 41.000 Eur in revenue and 28.000 Eur in subsidies last year, while a year ago he got 15.000 Eur in revenue and 24.000 Eur in subsidies.
The farmer was profitable last couple of years. He earned 22.500 Eur in profit in 2019 and 15.000 Eur in 2018. His equity reached 120.000 Eur at the end of last year.
- Investing from 100 € - interest 11,2%
- Investing from 1.000 € - interest 11,7%
- Investing from 5.000 € - interest 12,3%
- Investing from 10.000 € - interest 13%
At present, the Platform Operator does not make it possible to transfer claim rights that are acquired by concluding financing transactions through the Platform. (No secondary market)
Purpose of the loan:
To purchase sheep handling equipment.
Project investment return and interest payment:
- Start of the loan financing period on the HeavyFinance (Platform Operator) platform: 2020-10-07
- End date of the financing period: 2020-10-21, or until the loan is fully financed.
- Investment: from 100 €
- Annual return on investment: from 11,2% to 13%.
- Loan term: 25 months
- The project owner will repay the loan in two installments (2021-11 and 2022-11) and interest will be paid in monthly installments.