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Unfortunately, this deal expired 19.03.2024
2 months ago

Evening Alley X

/ max. 100,000 

About This Deal

The project Evening Alley X from Lithuania is raising investments amounting to 100,000 euros with the goal of Refinancing and an expected annual return of 11.9-13.9%. The loan term is 12 months, which means the period for the borrower to repay the borrowed amount and interest on the loan. In this case, the borrower must repay the loan within 12 months after receiving the loan.

The project's risk level on the platform is indicated as C+. On the platform, around 9% of projects have ratings of "A+", "A", "A-", while a majority of projects, about 58%, have ratings of "B+", "B", "B-". There are also projects with ratings of "C+", "C", "C-", comprising around 30%, with the remaining projects having ratings of D. Ratings A and B suggest that the expected investment risk is lower than when investing in loans with ratings 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 45%, which is within the established maximum value of 85%. The Loan-to-Value 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 45% indicates that the loan amount is 45% of the current market value of the collateral (likely real estate or another asset). 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 P00000873-10 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. The ESMA license is quite complex, as out of over 1000 platforms in Europe at the beginning of 2024, only 150 managed to obtain this license.

Please note, the platform specifies that this information cannot be construed as a recommendation, instruction, or invitation to use a specific investment service and is not considered a 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 investments responsibly by diversifying your investments.

What amount do you think is reasonable to invest in this project?