Funding for Self-employed farmer

Loan

• Amount € 5400.00
• Interest rate 10%
• Term 12m
• Collateral type Harvest
• LTV 28%

Description

This project gives LANDE investors an opportunity to provide a loan in the amount of € 5 400 for Self-employed farmer to receive a loan for working capital.

The annual interest rate of 10%, LTV of 28%, loan term is 12 months. The Loan and the interest for the Loan use for all the period of its use are repaid by one payment on the last day the Loan maturity term.

The borrower is a farming company engaged in crop farming growing wheat, oats, barley and maize as well as manages 39.88 ha of agricultural land. Financial results in 2022 were: declared income € 22 700.

In order to secure the repayment of the loan, the borrower has concluded an agreement for the wheat in the volume of 80 t. The repayment of the loan will be done once the harvest will be handed to the buyer.

The price of wheat is determined by the market exchange and at the time of the harvest will be approximately € 240 per ton, thus the value of the harvest is estimated at € 19 200. 

The borrower aims to repay the loan with incoming business revenue.

The borrower is a recipient of support payments from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development.