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Unfortunately, this deal expired 20.03.2024
4 months ago

Corner Hotel VI

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Business Lending

The Corner Hotel VI project from the country Lithuania is seeking investments in the amount of 125,000 euros for Working capital with an expected annual return of 10.5-11.25%. The loan term is 18 months, meaning the period for the borrower to repay the borrowed sum and interest on the loan. In this case, the borrower must repay the loan within 18 months after receiving the loan.

The project's risk level on the platform is rated as B-. The platform states that there are 10 different risk ratings from "A+" to "D". About 9% of projects on the platform have ratings of "A+", "A", "A-", while the majority, around 58%, are rated "B+", "B", "B-". There are also projects rated "C+", "C", "C-", comprising about 30%, with the remaining projects rated D. Risk ratings are intended to provide a better understanding of the project's riskiness. A and B ratings indicate a lower presumed investment risk compared to investing in loans rated C or D, but the returns will be correspondingly lower if investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 58%, which is within the established maximum value of 61%. The LTV ratio (the ratio of the loan amount to the collateral's market value) is an important indicator in the financial sector, especially in collateral-based lending. In this case, an LTV of 58% indicates that the loan amount is 58% of the current market value of the collateral (likely real estate or another asset). The maximum allowable LTV value for the project is 85%, which may be a constraint or standard requirement for this type of financing.

The internal project number is P00001163-6 on the licensed crowdfunding platform Profitus from Lithuania. The platform indicates that they obtained a license in November 2023 from the European crowdfunding regulator ESMA.

Please note that the information on the platform cannot 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 the Profitus platform and also recommend approaching investment responsibly by diversifying investments.

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