Refinancing
The project Hotel on Liberty Avenue V from Lithuania is raising investments in the amount of 140,304 euros for Refinancing with an expected annual return of 11.5-13.6%. The loan term is 12 months, meaning the period for the borrower to repay the loan amount and interest. 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+. The platform's website states that there are 10 different risk ratings, ranging from "A+" to "D". Ratings A and B indicate that the expected investment risk is lower than when investing in credits rated C or D, but the return will be correspondingly lower if you invest in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 66%, which is within the maximum value of 75%. 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 collateralized lending. In this case, an LTV of 66% indicates that the loan amount is 66% 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 limitation or a standard requirement for this type of financing.
The internal project number is P00000879-5 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 that the platform specifies that this information should not be construed as a recommendation, indication, 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 investment responsibly by diversifying your investments. Crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law in EU countries.
