This project gives LendSecured investors an opportunity to provide seasonal funding in the amount of € 1 440.00 for a self-employed farmer, to secure working capital (machinery lease and fuel) until the harvest.
This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 22%, loan term of 5 months, with monthly manner of interest payments.
Borrower is engaged in crop production with 25 ha of arable land. To secure the repayment of the loan, the borrower has concluded an agreement for summer wheat sale in volume of 25t and winter barley 10t. The repayment of the loan will be done once the harvest will be handed to the buyer.
The borrower is a recipient of government subsidies and support payments from European Agricultural Guarantee Fund and 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 205 per ton. The price of barley is determined by previous official sales results of previous years and at the time of the harvest will be approximately EUR 137 per ton; thus, the value of the harvest is estimated at EUR 6 495.00.