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With a loan of EUR 12,250 Batsoyombo can add 3 more growing rooms and hire additional 1 logistic worker with a small delivery truck.
Batsoyombo (29), a young entrepreneur who has been involved in small scale agricultural business has always been concerned with the food safety in Ulaanbaatar, Mongolia. As most gross products and greens are imported from China, Ulaanbaatar citizens lack nutritious fresh vegies and usually buy poor quality vegetables throughout the year. Started from the last year, his company started growing Oyster mushrooms and has already been supplying the local market with fresh and organic mushrooms.
Located at the suburban area of Ulaanbaatar city, Batsoyombo has been growing apple trees and other fruit trees and seasonal vegetables at his garden for the last 4 years, however, with extreme climate condition and freezing winter, it was almost impossible to harvest stable yield in Mongolia. After all of those hard works and trials, he started growing vegetable that less sensitive to harsh climate condition, a mushrooms. Inside the winter green house, he has turned the basement floor of 270 square meters in to compost preparing area and growing rooms, where he is able to yield 5-10kg mushrooms daily.
With continually growing demand from retail customers, the company has decided to increase the capacity to 25kg per day by adding 3 more growing rooms and to hire additional 1 logistic worker with a small delivery truck.
In order to reach this goal, Batsoyombo seeks to borrow MNT 36 million and become one of the pioneers in Mushroom business in the country.
| Company name | Fohat LLC |
| CEO | Batsoyombo Batchuluun |
| Founded | 2010-01-01 |
| Location | Ulaanbaatar, Mongolia |
| Sector | Agriculture |
| Turnover | €20,435.96 |
| Employees | 5 |
| Type | Local partner investment |
| Issuer | Golomt Bank |
| Funding target | €12,250 |
| Annual interest | 2.50% |
| Maturity | 24 months |
| Repayment period | Semiannually |
| Currency | EUR |
| Terms and conditions | Show |
| Note terms | Download |
| Information document issuer | Download |
Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.
Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.
Normally we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.
Also, for most direct loans no guarantee is provided. For these investments currency risks are covered however.
Sometimes - and only for some direct investments in Africa - our partner Sida, part of the Swedish government, will provide a guarantee with a maximum of 50%. If this is the case, it will be indicated explicitly.
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
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Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro.
If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
| Loan portfolio | €1,071,102,268.56 |
| Equity / total assets | 7.36% |
| Write-off ratio last 12 months | 5.41% |
| % investment amount in arrears (>90 days) | 6.53% |
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