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Unfortunately, this deal expired 13.03.2024
3 months ago

Night Avenue IX

/ max. 100,000 

About This Deal

The Night Avenue IX project from Lithuania is seeking investments of 100,000 euros for refinancing with an expected annual return of 11.9-13.9%. The minimum investment amount is 100 euros.

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+. Risk ratings are meant to provide a better understanding of the project's riskiness. Ratings of A and B indicate lower investment risk compared to investing in loans with ratings of C or D, but the returns will be lower accordingly when investing in projects with lower risk levels.

The project has a Loan-to-Value (LTV) ratio of 45%, which is within the set maximum value of 85%. 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 collateralized lending. A 45% LTV in this case 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 P00000873-9 on the licensed crowdfunding platform Profitus from Lithuania. The platform states that they obtained a license from the European crowdfunding regulator ESMA in November 2023.

Please note that the platform specifies that this information should not be construed as a recommendation, instruction, 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 Profitus platform and also recommend approaching investments responsibly by diversifying your investments.

I'm considering Night Avenue IX, but I'm a bit cautious. The risk level is C+, and I wonder if the higher return comes with higher potential risks.

​​The 12-month term sounds good, but I'll dig into more details before deciding.