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Lumber Wholesale Company - working capital increase | Round 01
100% Funded

100%
100%
Need:0.00€
Min.:0.00€
Interest rate:28%
Period:12 months
Target: 80 000€
Min. target: 20 000€
Opens: 2021/03/19
Expires: 2021/04/09
Type: SME
Location: Latvia
Investors: 540

In the UK increased building and home improvement activity in 2020, particularly during the first lockdown, and a slowdown in the production of materials in the EU because of COVID-19 has resulted in a shortage of materials. Three national lockdowns within a year have led to supply chains being stretched, and the challenges facing materials producers are growing. 87% of builders had reported rising costs in the year 2021 by 5-10% on average. One reason for this is that producers of materials now face increased shipping costs because of a global shortage of empty containers. Additionally, the cost of transporting materials from China to Europe has risen in recent times.

Summary

CROWDESTOR would like to announce a new investment opportunity in the forestry industry Lumber Wholesale Company - working capital increase. 

Current investment opportunity offers CROWDESTOR investors to make a loan to SIA Baltic Wood Supplies with a term of 12 months and interest of 28% p.a. that is paid monthly. The financing target in this round is EUR 80 000.

The total funding target is EUR 400 000, and funds will be raised in 5 rounds during a 5-month period. The funds raised in this campaign will be used to purchase around 1160 cbm of raw boards.

Taking into account the current timber market situation SIA Baltic Wood Supplies needs additional funds that will be used to purchase raw material (spruce raw boards)  to increase cutting speed and power. Every month since Autumn 2020 timber prices are going up both in raw material purchases and sales price. SIA Baltic Wood Supplies wishes to purchase raw materials for March price and produce and sell part of that at the end of March and the majority of that in April for April higher sales price. SIA Baltic Wood Supplies is targeting to benefit from the current timber market situation to maximize profit on the upgoing price and volume market for timber battens.

LOAN

Minimum target: EUR 20 000.00 
Maximum target: EUR 80 000.00 
Loan period: 12 months
Interest rate: 28% p.a.
Repayment: Interest payments are paid monthly. Loan principal - repaid monthly in similar installments. 
Security: A personal guarantee from the company shareholder
CROWDESTOR Provision Fund
Yes
Location: Latvia

Remember - interest rate payments start calculating from the day you make your investment!

Macroeconomic trends and Business Opportunity

The company seeks funding as it sees potential for increasing production and sale volumes taking into account increasing demand.

The end purchasers of SIA Baltic Wood Supplies timber roofing battens are located in the UK. Until the end of September, there will be a very high demand for timber roofing battens as builders will force building and trying to finish and sell as many houses as they can during the Stamp Duty holiday time (in England and Northern Ireland, you must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price). Because of the Stamp duty holidays, end buyers will be able to pay more for the ready houses and that will promote the acceleration of building and construction works.

The Stamp Duty holiday on house purchases has been extended to the end of June. The reduced Stamp Duty will be in force till the end of September 2021. That’s why construction in the United Kingdom will be very busy till at least October 2021. In reality, many predict that busy construction will continue all 2021 and spring of 2022 as well.

About the company 

SIA Baltic Wood Supplies was established in 2010 and is operating in the field of wood processing, cork, and paper production. The company manufactures and sells processed wood products such as cork and paper to wholesale and retail partners. The main company's market in Baltic countries. The company is product-centered, putting high-quality manufacturing as its top priority. The high quality of the offered products has created a long-term collaboration with their partners, making the company a stable and trusted player in the Baltic market. 

Company name: SIA Baltic Wood Supplies
Registration number:
0103328872
Registration date: 04.10.2010
Registration country: Latvia
Legal address: Zilā iela 22, Rīga, LV-1007
Actual address: Zilā iela 22, Rīga, LV-1007
Board member Andrejs Augstkalns
Shareholders Andrejs Augstkalns

 

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