Borrower case study: Business loan as a credit line for Sixholm OÜ

The borrower: Sixholm OÜ is an experienced developer of single-residential and terraced houses, and has been engaged in construction since 2004. During this time the company constructed houses in both Estonia and Germany.

Loan purpose: The loan was used to increase the operating capital of the company.

Loan request:

  • €163 000 for increasing the operating capital of the company. It was divided into two different loans (amounts €106 000 + €57 000) with a Loan to Value (LTV) of 65% as there were two collaterals: An apartment in the residential quarter and apartment in the city centre, both located in the capital of Estonia – Tallinn.
  • The loans were issued in the form of bullet loans with a repayment period of 18 months and quarterly interest repayment.
  • The borrower also wanted the possibility of using loans as a credit line. This means that the Estateguru mortgage will remain even after the loans are fully repaid with the purpose of fast capital raising when needed in the future.
  • Most of the raised capital was used to finish developing a project in Tiskre, Estonia.

The borrower, Sixholm OÜ, was a new EstateGuru customer, having completed the majority of its previous developments through funding from traditional banks or an alternative credit provider.

EstateGuru’s loan manager saw the half-finished construction in the Tiskre area near Tallinn and contacted the developer.  After a first meeting with the developer, it turned out that he didn’t know anything about crowdfunding but our flexible terms and the modernity of the system piqued his interest.

Möldre tee 12 project with 9 homes.

The solution:

The action plan was created in November 2019 when four terrace houses out of nine had already been sold and another one reserved for sale at the Möldre tee 12 development. Mortgages for two apartments put up as collateral was established in January 2020 and the first tranche of €106 000 was lent to the borrower. During this time EstateGuru was in constant contact with the borrower to get updates on the project and a good working relationship was established. In the middle of March, the second tranche of €56 000 was also released. At the moment Möldre tee 12 is almost ready with six houses sold and another two reserved for sale.

EstateGuru on cooperation with Sixholm OÜ

“Working with Andrey Lugin (Member of the board) is very easy, he is positive, doesn’t rush the timeline, makes informed decisions and is always available if I need some additional information. I believe that our cooperation will be long and successful.” Pavel Artamonov – EstateGuru Loan Manager

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