New high-yield Envestio project – Production of wood pallets – trade financing 2
Envestio informed today that a new investment opportunity is available at the portal to all registered participants.
By introducing the new Investment Project “Production of wood pallets – trade financing 2″, Envestio expands the variety of industries available to invest in.
The loan is fully secured by mixed commercial pledge and personal guarantee of the main beneficiaries of “PALLET TIMBER COMPANY” SIA.
As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.
If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.
Investment opportunity
- High-yielding investment in timber processing sector, factoring-type financing for a sawn timber and wooden pallets manufacturing company.
- Secured debt, 20,67% planned annual return.
- Investment principal buyback is available at 5% penalty rate.
Project description
The company PALLET TIMBER COMPANY SIA is a Latvian venture that is successfully working on the market of producing sawn dimensional timber products and different types of wooden pallets since 2012. The company operates modern production facilities in Riga, Latvia, which allows it to optimize raw products purchasing and logistics costs. Latvia is one of the richest countries in Europe in terms of forest – approximately one half of its territory is covered with woods. A vast variety and wide availability of different types of local raw timber makes woodworking industry one of the country’s most advanced and well-known at different export markets. PALLET TIMBER COMPANY SIA uses trademark “Made in Latvia” as an additional competitive advantage for its produce.
Flexibility is another key asset of PALLET TIMBER COMPANY SIA. Dimensional timber it produces has vast amount of different sizes, making it suitable for a wide variety of purposes of use in different markets with diverse standards.
The same refers to the wooden pallets, produced by PALLET TIMBER COMPANY SIA. Depending on specification of cargos and type of transportation and storage, the company offers pallets of different construction, durability, and area. For the production of separate order of pallets, it is also possible to use clients’ drawings and other requirements. The range of materials, which are used in the production process of the pallets include planks, beams, plywood, OSB, pressed cubes, as well as other materials. Examples of company’s produce can be seen in the pictures below.
PALLET TIMBER COMPANY SIA is looking to attract factoring-type financing enabling it to accomplish additional purchases of raw timber and increase sales, mainly to the export markets. The PALLET TIMBER COMPANY SIA currently is actively expanding to new markets (such as Turkey, United Arab Emirates, and Scandinavian countries) but additional funds will also be used in order to increase exports to current clients. The main export markets for the company’s produce include Germany (up to 48% of the company’s produce), Poland (16%) Belgium (8%), the Netherlands (7%), and other countries (21%). Advantageous geographical location allows fast delivery of company’s produces both across the Europe and also to the Eastern direction by land or sea.
Market
Wood is the most preferred material for pallets across the globe, as it offers huge advantages in terms of response time and low startup cost for customized designs. Wooden pallets sometimes end up with sharp splinters causing injuries or protruding nails that damage food packaging. But due to the low costs, wood pallets will continue to dominate product sales in most areas across the globe. However, wood pallets these days are largely being replaced with plastic pallets. As food safety compliance and reusability is a growing attraction among manufacturers, they are looking for sustainable material handling options and thus, plastic pallets will continue to gain acceptance in a range of industries including foods & beverage, pharmaceuticals, groceries and automotive.
With a huge incremental opportunity, the global pallets market is projected to grow at more than 5% CAGR during the period of assessment.
During the period 2012 – 2016, the global pallets market expanded at a CAGR of 4.7%. However, during the forecast period – that is between 2017 and 2025 – the market is anticipated to grow at a CAGR of 5.4% owing to increasing demand for better and safe transportation coupled with the rise in demand for pallets from various industries like food, agriculture, chemicals etc. The global pallets market is projected to represent incremental opportunity of more than US$ 25 Bn between 2017 and 2025.
Sample repayment schedule
Envestio participant’s investment – EUR 1 000.00
Payments:
- 29.11.2018 – EUR 17.56
- 29.12.2018 – EUR 16.99
- 29.01.2019 – EUR 17.56
- 28.02.2019 – EUR 16.99
- 29.03.2019 – EUR 16.42
- 29.04.2019 – EUR 1017.56
Total expected return: EUR 1 103.08
