Riga, Latvia

Rolled metal manufacturing

Active

Rolled metal manufacturing

Borrower:

SIA “Sigma Trade”

Type:

Business growing

Opens:

11 Oct 2019

Extended till:

-

Interest rate:

18.00% per annum

Loan period:

9 months

Funding target:

€ 300 000

Still need:

€ 13 922

Funded:

€ 286 078

Buyback:

6 % fee

Risk level:

Low

Collateral agent:

Monethera Group OU

Guarantees:

Pledged commercial assets and personal guarantees of the director

Repayment schedule:

Monthly on the 1st day of each month

Being that we are continually looking for attractive investment opportunities for our partners, we, at Monethera, are pleased to present SIA “Sigma Trade”. The company is a wholesaler of solid, liquid, gaseous fuels and related products, and is involved in the construction of residential and non-residential buildings in Latvia. With a wealth of experience in reliable distribution, strong relationships with merchants and quality drywall manufacturing, the company has proved itself to be a reliable partner, responsible manufacturer, and first-class service provider. Nowadays, it is engaged in the production and sale of metal profiles for drywall in the Latvian market. An automatic control system ensures the high quality of the finished product and tracking the accuracy of the manufacturing process. In spite of the high competition and full offer in the market, SIA “Sigma Trade” not only manages to keep the clientele, but also to acquire new permanent clients.

Сompany goal

In recent times, SIA “Sigma Trade” has decided to increase the production of drywall metal systems due to the growing demand for quality goods at an affordable price. The company wants to invest a noticeable amount of money in accomplishing the total necessary procedure for the implementation of project expansion and modernization. The process will include warehouse expansion, improvement of the existing equipment, signing of new contracts and purchase of additional raw materials.

Drywall Metal Systems are used for interior construction on both new and refurbishment projects. SIA “Sigma Trade” systems are used in residential, commercial, hospital, education, and industrial market sectors.


In detail, they are used for:

compositions for ceilings and wall linings of any range;

structures for both simple and multiple partitions in a wide range of heights;

individual arrangements for the creation of curved walls, partitions, ceilings as well as staircases, perimeter edge, variable corners, and protected edges.


The combination of components allows us to achieve a wide range of solutions that can meet a variety of different technical requirements. Combining maximum performance and minimum fuss, the drywall metal sections made by SIA “Sigma Trade” are easy to install in any interior. The company offers and manufactures a comprehensive range of quality systems that include a comprehensive range of drywall profiles, including all standard size “C” Studs, “U” Tracks, Furring System, Lining System, “I” Studs, Resilient Bar, Acoustic Studs, European dimension studs, treated support systems (for swimming pools) and lining systems (for external wind load applications), complemented by components and fixings. They are manufactured using high-quality steel and are available in a wide range of sizes. The company has an "In House" laboratory for material testing. This guarantees the customers a high degree of quality and ensures that safety will be achieved. And by way of a network of national, regional, and local merchants, SIA “Sigma Trade” has established a reputation of quality for products and systems, supplying them nationwide to the trade. Their range of handy-sized renovation guides is ideal for helping the clients in product and system selection. At Monethera, we are strongly convinced that investing in such a thought-out, in-demand, already-functioning and successfully-working project will bring you money and will create new opportunities for future investments.

About the company

The main office of SIA “Sigma Trade” is situated in the centre of the Latvian capital, Riga. During the years of its activity, the company has shown excellent results and established long-term cooperations with many companies in the Latvian national market. In any business, the main thing is to maintain proper and profitable relations with partners, monitor the quality of the products offered, and provide decent service and customer support. Adherence to these rules allowed SIA “Sigma Trade” to meet the clients' expectations and to guarantee the highest quality of provided services. The company brought together, in one place, outstanding and highly qualified professionals of metallurgy and production. Cooperation with carefully selected suppliers and permanent control of the quality of raw materials minimizes, and almost eliminates, every possible risk. We, at Monethera, are firmly persuaded that this firm is a convincing case of a successful and reliable market player.

Summary / Project description

Industry: technology/manufacturing of metal constructions and related products.

SIA “Sigma Trade” is willing to purchase additional raw materials, hot-rolled metal for the production of additional finished products. This procedure requires a conclusion of the new agreement with a new supplier-manufacturer of hot-rolled metal to obtain a guaranteed, more favorable price than the price offered by third parties (traders). It will make it possible to optimize the procurement of raw materials, to form and accumulate the stock of the commodity and finished products in a warehouse of the company. The availability of the finished products in the stock will guarantee short-time delivery, fast communication process, client support and additional services.

The necessary amount of money to collect (factoring limit) for the rapid realization of the project is 300.000 EUR.

The loan period is for 9 months.

This project guarantees high profitability and short time-limits for the realization and liquidity. If you want to diversify your investment portfolio and receive your money back rapidly, we offer you this investment opportunity. The current option offers you to loan money with an 18% annual interest rate.

The purpose of obtaining financing

First of all, the company intends, as soon as possible, to purchase an additional amount of raw materials to manufacture an additional amount of high-quality finished products (drywall metal systems). The high demand on the Latvian national market requires fast-acting. To optimize the buying process, the administration of SIA “Sigma Trade” is conducting negotiations with new suppliers to guarantee the supreme quality of the commodity and finished products. By diversifying the suppliers’ portfolio, the company pretends to accumulate the stock of raw materials and finished products in the warehouse. The invested money will be directed to the payment (factorization) of the suppliers' invoices and accounts receivable servicing. This decision was made to avoid any possible hazards to other current projects of the company and to guarantee the uninterrupted delivery of the goods.

SIA “Sigma Trade” will purchase metal rolling of a 0,5 mm thick. The purchase amount is 100 tons per month.

The total cost of the shipment is 62.500 EUR per month.

The factoring amount is 90% of the monthly invoice, in absolute figures is 56.520 EUR.

The metal rolling of 0,6 mm thick, the purchase amount is 200 tons per month.

The total cost of the shipment 138.500 EUR per month.

The factoring amount is 90% of the monthly invoice.

In absolute figures that is 124.200 EUR.

The total percentage of factoring per month is 18%, in absolute figures is 2.706,75 EUR.



The payment conditions are strict, and after evaluating all the possible options, the management of the company made a decision to work on the basis of the advanced payments, due to the fact that the supplier offers a reasonable price. SIA “Sigma Trade” wants to use reverse factoring services. In other words, that's when a finance company, such as a bank, interposes itself between a company and its suppliers and commits to pay the company's invoices to the suppliers at an accelerated rate in exchange for a discount. Reverse factoring is available and familiar to those suppliers with which a company has established a long-term trading relationship.

The factoring limit is 300.000 EUR.
An average invoice amount is 16.000 EUR.
The advanced payment is 90% of the total cost of the shipment.
The term of payment is 60 days.

Why SIA “Sigma Trade” is looking for funding?

SIA “Sigma Trade” wants to diversify the chain of the suppliers of the raw materials and to increase the production of the finished products, drywall metal systems. The company also intends to invest a considerable amount of money in the accumulation of the stock and to cover additional financial costs.

For the moment, the company is fulfilling previously assumed commitments, and to avoid any risk for these existing projects, they made a decision to loan 300.000 EUR on a factoring basis. This amount of money will allow us to make the first shipments and to make an advanced payment for the raw materials, and also will cover the accounts receivable servicing.

We, at Monethera, carefully examined the proposal of SIA “Sigma Trade”, and we are convinced that they are able to fulfill the assumed obligations and guarantee the repayment of the entire loan.

Loan

The funding target (factoring limit) is 300.000 EUR for nine months. Interest rate 18% annual.

Loan period: of 9 months.

Interest rate: 18%, secured debt.

Repayment schedule: Monthly on the 1st day of each month.

Loan purpose: Buy raw materials (hot-rolled metal) to increase the production and accumulate the stock of drywall metal systems.

Repayment of Principal Loan in full at the end of the loan period.

The future of the project and long term cooperation: Once the total amount of loan repaid, SIA “Sigma Trade” is open to discussing further cooperation opportunities.

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