Back

Lumber Wholesale Company - working capital increase
100% Financiado

100%
100%
Faltan:0.00€
Min.:0.00€
Tasa de interés:24%
Período:3 meses
Objetivo: 115 000€
Min. objetivo: 50 000€
Abre: 2021/06/28
Vence: 2021/07/28
Categoría: Specialized
Ubicación: Latvia
Inversiones: 505

There is a significant shortage of wood materials in the UK, due to increased building activity combined with the production slowdown and supply chain disruption associated with COVID-19. 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 | Round 03.

Current investment opportunity offers CROWDESTOR investors to make a loan to SIA Baltic Wood Supplies with a term of 3 months and interest of 24% p.a. that is paid by bullet payment at the end of the term. The financing target in this round is 115 000 EUR.

The funds raised in this campaign will be used to purchase around 335 cbm of raw boards.

Taking into account the current timber market situation, SIA Baltic Wood Supplies needs additional funding to purchase raw materials (spruce raw boards) to increase the cutting speed and production of timber battens. Every month since autumn 2020 timber prices are going up both in raw material purchases and finished products. SIA Baltic Wood Supplies plans to purchase raw materials for a lower July price and sell the finished product at a higher August price. SIA Baltic Wood Supplies is targeting to benefit from the current timber market situation to maximize profit on the upgoing price and volume of timber batten market. 

LOAN

Minimum target: EUR 50 000
Maximum target: EUR 115 000
Loan period: 3 months
Interest rate: 24% p.a.
Repayment: Interest and the principal are paid in full at the end of the Loan Term
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 will try 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

 

Suscríbete a la newsletter

¡Apúntate para estar al día de las últimas inversiones y ofertas especiales!