Additional working capital for purchase of ferilizers
This project gives LendSecured investors an opportunity to provide seasonal funding in the amount of € 6000 for Upmalas pagasta zemnieku saimniecība "PĪLĀDŽI", registration No.41501020255, for working capital(purchase of fertilizers).
This project gives an opportunity to make a loan with an annual rate of 10%, LTV of 45%, a loan term of 9 months, with a monthly manner of interest payments.
The borrower has been operating since 1999 and is engaged in the growing of cereals (except rice), leguminous crops, and oilseeds. In order to secure the repayment of the loan, the borrower has concluded an agreement for winter wheat sale in the volume of 60t. The repayment of the loan will be done, once the harvest will be handed to the buyer.
This is a second season when the borrower is using the services provided by LendSecured to ensure the working capital. In the beginning of 2021, the borrower obtained funds for the purchase of fuel (https://lendsecured.eu/en/loans/210618-386410). This loan was repaid by the buyer of the harvest this autumn.
The borrower is a recipient of government subsidies and support payments from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development.
The price of wheat is determined by the stock exchange and at the time of the harvest will be approximately EUR 220 per ton, thus the value of the harvest is estimated at EUR 13 200.
To avoid loss of crops due to natural disasters, such as hail, rainfall, or storm, the harvest will be insured.
For an additional guarantee, the owner of the farm is providing a personal surety-ship in the full loan amount.
By owner Elita Dzene
against loss of crops due to natural disasters, such as hail, rainfall, storm