Refinancing
Project J7 12C-1 from Lithuania is raising investments amounting to 170,800 euros for Refinancing with an expected annual return of 12.5-13.5%. The loan term is 6 months, meaning the borrower has to repay the loan amount and interest within 6 months of receiving the loan.
The project risk level on the platform is indicated as C. Projects with ratings of "A+", "A", "A-" represent around 9% on the platform, while projects with ratings of "B+", "B", "B-" constitute the majority at 58%. There are also projects with ratings of "C+", "C", "C-", comprising around 30%, with the remaining projects rated D. Risk ratings of the project are meant to provide a better understanding of its riskiness. An A or B rating indicates lower expected investment risk compared to investing in C or D-rated loans, but the returns would be correspondingly lower if investing in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 67%. Such LTV restrictions are set to reduce risks for the lender and ensure a more stable financial position for the project. For example, the lower the LTV, the lower the risk of default, as the borrower has more equity in the project.
The internal project number is P00001186 on the licensed crowdfunding platform Profitus from Lithuania. The platform states that they obtained a license in November 2023 from the European crowdfunding regulator ESMA.
Please note, the platform specifies that this information should not be construed as a recommendation, advice, or invitation to use a particular investment service and is not considered the basis or part of subsequent transactions. Investing always carries the risk of losing part or all of the investments. I agree with Profitus and also recommend approaching investments responsibly by diversifying your portfolio.
