Refinancing
Project J7 13A-1 from the country Lithuania is raising investments in the amount of 128,000 euros with the purpose of Refinancing and an expected annual return of 11.9-12.9%. The minimum investment amount is 100 euros.
The loan term is 6 months, indicating the period for the borrower to repay the borrowed amount and the interest on the loan. In this case, the borrower must repay the loan within 6 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." Around 9% of projects on the platform have ratings of "A+," "A," "A-," while the majority, 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 a rating of D. Ratings A and B suggest that the expected investment risk is lower than investing in credits with ratings C or D, but the returns will correspondingly be lower if you invest in projects with lower risk levels.
The project has a Loan-to-Value (LTV) ratio of 57%. Such LTV limitations are set to reduce risks for the lender and ensure a more stable financial position of the project. For example, the lower the LTV, the lower the default risk, as the borrower has more equity in the project.
The internal project number is P00001199 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. The ESMA license is quite complex, as out of over 1000 platforms in Europe at the start of 2024, only 150 managed to obtain this license.
Please note, the platform specifies that this information should not be construed as a recommendation, advice, or invitation to use a particular 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 Profitus' platform and also recommend approaching investments responsibly by diversifying your investments. Crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Act in EU countries.
