Project J7 12-2 from Lithuania is raising investments in the amount of 173,000 euros for Refinancing with an expected return of 12.5-13.5% per year. The loan term is 6 months, which means the period for the borrower to repay the principal and interest on the loan. In this case, the borrower must repay the loan within 6 months after receiving the funds.
The project's risk level on the platform is indicated as C. On the platform, projects with ratings of "A+", "A", "A-" account for about 9%, while projects with ratings of "B+", "B", "B-" make up the majority at 58%. There are also projects with ratings of "C+", "C", "C-", which are fewer at around 30%, and the remaining projects have ratings of D. Risk ratings are intended to provide a better understanding of the project's riskiness. An A or B rating indicates that the expected investment risk is lower than investing in loans rated C or D, but the returns will be correspondingly lower if you invest in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 68%. The LTV ratio (the ratio of the loan amount to the market value of the collateral) is an important indicator in the financial sector, especially in collateral-based lending. In this case, an LTV of 68% indicates that the loan amount is 68% of the current market value of the collateral (likely real estate or another asset). LTV limits 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 P00001184 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 states that this information should not be construed as a recommendation, advice, or invitation to use a specific 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 platform and also recommend approaching investing responsibly by diversifying your investments.