Refinancing
The project "Spaces on the Freedom Avenue" from the country Lithuania is seeking investments amounting to 157,700 euros for Refinancing with an expected annual return of 8.9-10.9%. The loan term is 12 months, meaning the borrower has to repay the loan amount and interest within 12 months after receiving the loan.
The project's risk level on the platform is specified as B+. The platform's website states that there are 10 different risk ratings ranging from "A+" to "D". Risk ratings are designed to provide a better understanding of the project's level of risk. Ratings of A and B indicate that the expected investment risk is lower compared to investing in loans with ratings C or D, but the returns will be lower correspondingly if investing in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 56%. 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 56% indicates that the loan amount is 56% of the current market value of the collateral (likely real estate or another asset).
The internal project number is P00001196 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 in early 2024, only 150 managed to obtain this license.
Please note that the information on the platform cannot 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 Profitus platform and also recommend approaching investing responsibly by diversifying your investments. In the European Union countries, crowdfunding is not prohibited by the Deposit Insurance and Investor Responsibility Law.
