This project gives LendSecured investors an opportunity to provide seasonal funding in the amount of € 4 200,00 for a self-employed farmer, in order to secure working capital until the harvest.
This project gives an opportunity to make a loan with an annual rate of 12%, LTV of 39%, loan term of 8 months, with monthly manner of interest payments.
Borrower is a newly established farm engaged in growing cereals (except rice), leguminous crops and oil seeds. In order to secure the repayment of the loan, the borrower has concluded an agreement for biological oat sale in volume of 50t. Furthermore, a 3-way agreement has been concluded with the oat buyer, the collateral agent and the borrower, which guarantees that the buyer makes a direct payment to the collateral agent, in order to repay the loan in the name of the borrower, once the harvest is handed to him.
The price of oat is not determined by the stock exchange, but buy buyer, and is approximately EUR 215,00 per ton, making the value of the harvest EUR 10 750,00.
To avoid loss of crops due to natural disasters, such as hail, rainfall, storm or the loss of revenue due declines in the prices of agricultural commodities, the harvest will be insured.
against loss of crops due to natural disasters, such as hail, rainfall, storm or the loss of revenue due declines in the prices of agricultural commodities