Refinancing
The investment project "Guest House Kontininku str. 5 V" from the country Lithuania is raising investments in the amount of 106,000 euros with the purpose of Refinancing and an expected annual return of 7-8%. The loan term is 12 months, meaning the borrower must repay the loan amount and interest within 12 months after receiving the loan.
The project's risk level on the platform is rated A+. Projects with ratings of "A+", "A", "A-" constitute about 9% on the platform, while those 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 rest are rated D. Ratings A and B indicate lower investment risk compared to investing in credits with ratings C or D, but the profitability will be lower correspondingly if investing in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 7%, which is within the established maximum value of 58%. 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 7% indicates that the loan amount is 7% of the current market value of the collateral (likely real estate or another asset).
The internal project number is P00000853-5 on the licensed crowdfunding platform Profitus from Lithuania. The ESMA license is quite complex, as out of over 1000 platforms in Europe by early 2024, only 150 managed to obtain this license.
Please note that 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 the Profitus platform and also recommend approaching investment responsibly by diversifying your investments. Crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law in EU countries.
