Loan GRP-1828 - Warenkredit
The company is exporting sawmilled wood to several international clients. It is in the market for 8 years. It had a significant turnover increase from EUR 1.3 million (2016) to EUR 4.7 mill (2017). It has shown a marginal profit (in EOY retrospective) for consecutive 3 years. It is a trading company with minor fixed assets other than working capital. It is part of the group of sawmilling companies and is managed and controlled by an experienced team thereof.
There is another short-term installment loan issued to this client in July 2018 for EUR 80.000, the residual balance of which is 55% of the starting value. This loan will remain with the loan originator and will not be put up for sale. Therefore, the compound risk of the loan originator towards this Borrower (the legal person) is at least 24% of the total exposure.
Important: the documentation for the loan is signed in form of a notarial act (according to the legislation of the Republic of Latvia), which allows the issue of execution order based on a unilateral decision of a notary upon payment delay of a given number of days and does not require litigation in formal courts.
There are three personal guarantees from the owners of the (main) company of the group.
With amortizing loan the principal is repaid throughout the duration of the loan according to schedule. The interest is paid on the residual loan amount (total loan amount less principal repayments). Therefore the amount of claim right acquired under the assignment agreement shall be reduced from time to time by each principal repayment accordingly.