#5922 Business loan - 4.stage (Estonia) Funded: 29.11.2018

  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)
  • #5922 Business loan - 4.stage (Estonia)

Executive Summary

    • The loan is used to release equity capital and increase the operating capital of the company.
    • The loan will be repaid from the company’s business revenues or by refinancing.
    • The loan is secured with a first rank mortgage.
    • The borrower AP Haldus OÜ owns a production complex in Aruküla small borough, 25 km from Tallinn, which is leased by Kehra Puutööstus OÜ, founded in 2011, whose main field of activity is the production of solid wood panels and various other details to other manufacturing companies, such as furniture and door manufacturers in the European Union.
    • The company’s main partners are located in Estonia’s neighbouring countries (Finland, Sweden, and Norway), with whom long-term cooperation agreements have been concluded. The turnover of Kehra Puutööstus OÜ was 1.28 million euros in 2016 and 1.53 million euros in 2017. Its profit in those years was about 29,000 euros and 17,000 euros, respectively. The estimated turnover for 2018 is similar in value to last year’s turnover, i.e. about 1.5 million euros.
    • In accordance with the lease agreement, Kehra Puutööstus OÜ pays a rent of 10,000 euros + VAT per calendar month. The lease agreement was concluded for ten years in November 2016 and there is no provision for its early termination by the tenant. According to the company’s bank statements, the tenant has paid for the lease agreement correctly.
    • The tenant has the right to sublease the rented complex. Currently, the tenant receives about 2,000 euros from the subtenants. During the winter period, they also sell heat produced by the company’s boiler house to the neighbourhood school, which means an additional income of about 2,000 euros per calendar month for the tenant.
    • The collateral is a universal production complex with a total area of 8,820.9 m2, which can be used by different sectors of the heavy industry. The building has historically been used by woodworking companies, which means that there is specific equipment in the building for this purpose – a wood dryer, painting chambers, ventilation, an ATS system, and the like. The property has a substation with a capacity of 500 A.
    • The plot area of the production complex is 41,377 m2, a large part of which is an asphalted storage site, which, in turn, has been rented out to various tenants.

Loan Terms

Loan Contract Number

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Quick Overview
100.0% filled, 397 investors
  • Expires Funded
  • Target €100,000
  • Collateral value €1,150,000
  • LTV 39.0%
  • Projected LTV 48.0%
  • Loan Period 18 months
  • Schedule Type Bullet
  • Mortgage Rank First rank
  • Property Type Commercial building
  • Loan Type Business loan
  • Location Estonia

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Investing

  • You must be at least 18 years old and have a bank account in any of the EEA member states or in Switzerland in order to lend through EstateGuru. We also have to perform certain "know your customer" checks before you can start investing with EstateGuru.
  • The minimum investment amount is €50.
  • Depending on the project characteristics the annual interest rate can range between 8% and 13%.
  • All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee on behalf of the investors). The Security Agent is a separate limited liability company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru. The name of the entity is EstateGuru Tagatisagent OÜ. The entity is controlled by the leading Baltic law office of Jesse&Kalaus
  • EstateGuru makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.
  • EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru’s operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.
  • The Estonian Financial Conduct Authority (FCA) has confirmed in 2014 that any laws or regulations that apply to credit institutions or to broker-dealers do not apply to us as EstateGuru is not a finance provider but a facilitator. The FCA expected to release a new marketplace lending specific regulation in 2017.
  • EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.
  • After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.
  • An unsecured loan is a loan which does not have any collateral in place, such as land or apartment, and is solely based on a borrower’s credit history and potential ability to repay. Secured loans have assets as collateral so that, if a borrower cannot repay the loan, EstateGuru's partnering law firm Jesse&Kalaus will start the asset sales process. Hereby, the risk of losing the money is minimized.
  • First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document. Transfer money to your EstateGuru virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your EstateGuru account
  • No fees apply to investors. All expenses are covered by the borrower.
  • Yes. You need to create an investor account with your own name and in the end of the registration form, you have to choose “Select this if you represent a company”. Make sure to add the full name of your business and the correct registry code. Before investing you are required to send us an accurate copy of your government-issued identification document.
  • We do not pay interest on uninvested funds. To get the best return from using our platform you should invest your money into open projects to minimize uninvested funds. EstateGuru also has an Auto Invest function which will take care of your investments without you having to worry about it.
  • You will start earning interest after the required documentation and creation of pledge is completed.
  • As soon as the borrower is late in repaying an instalment, we will make contact on behalf of our investors to find out the reason behind the delay. In case of a delay, the borrower shall pay a fine specified in the general loan terms clauses 9 and 10. When the borrower faces financial difficulties, we will try to find the best solution for both parties. If the borrower is not able to repay the loan, the borrower will be given the option to take a repayment break. If the borrower is still unable to repay the loan, we will cooperate with the law firm Triniti, who will act towards recovering the debt.
  • In case the borrower wants to extend the loan period, EstateGuru will investigate the reasons and assess the situation accordingly. If the loan period is to be be extended, the borrower will be obliged to pay a fee to cover additional documentation expenses.
  • The aim of inspecting the borrower is to assess the company's ability to pay back the loan. We do a thorough investigation of the borrowers’ background, creditworthiness and current obligations. If applicable, the business plan and financial statements will also be investigated.
  • Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.
  • The interest that you receive from borrowers is gross income, which means that EstateGuru does not deduct any tax from the amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but will still be liable for tax. EstateGuru does not provide tax-related advice and recommend that you turn to a local tax advisor for additional information.