#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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  • 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.
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