Investments in loans are being made under the Aviete Crowdfunding Loans facility. ILTE will invest up to 40% of funds or up to €30,000 in loans for Lithuanian farmers meeting established criteria. Meanwhile, the remaining loan amount will be financed by investors on the InSoil platform. This funding will be available for working capital and investment agricultural loans.
“Small and medium-sized farms are increasingly determined to transition to more sustainable farming practices. However, they often struggle to secure financing from traditional financial institutions for the necessary equipment or to increase working capital. We offer them attractive terms and a repayment schedule tailored to their cash flow. We have already provided loans totaling €60 million. ‘Avietė’ will not only increase access to capital for small and medium-sized farms. It will also encourage small investors to lend to farmers,” says Laimonas Noreika, CEO of InSoil. Notably, ILTE acts as an important player in this funding process.
It is expected that over €2 million in loans from ‘Avietė’ funds will be disbursed through the platform by the end of the year.
“The ‘Avietė’ crowdfunding loans are one of the alternative financial instruments provided by ILTE. They help small and medium enterprises secure loans under market conditions. This is crucial when they cannot obtain financing through traditional means. Loans are provided through crowdfunding platforms. The state’s contribution can cover up to 40% of the loan amount,” says Agnė Mačiulienė, Senior Project Manager in the ILTE Indirect Loan Products Department.
To be eligible for ‘Avietė’ loans, Lithuanian farms must have been operating for at least two years. They must also apply for funding for investments or working capital. They will also need to submit financial statements, bank account statements, and consent for data verification. The ILTE document states personal guarantees will suffice for loans up to €15,000. Larger loans will require collateral. This could be in the form of real estate or other assets. Farmers will receive a response about whether their company meets the ‘Avietė’ crowdfunding loan criteria and other risk criteria directly from the platform.
Laimonas Noreika mentions that about 80% of farmers seeking to borrow through the platform will meet the ‘Avietė’ criteria. For farms that cannot access ‘Avietė’ loans, InSoil will continue to offer traditional and interest-free Green Loans for the transition to sustainable farming.
InSoil has already provided more than 2,000 agricultural loans totaling €60 million. The company offers financial services to farmers in Lithuania, Poland, Latvia, Bulgaria, and Portugal. It also invites farmers to join the Carbon Farming Programme. This helps implement sustainable practices and generate carbon pollution certificates (carbon credits) on farms.
InSoil has raised over €4 million in venture capital investments from fund managers such as Practica Capital, BlackPearls VC, bValue, and Startup Wise Guys. These funds have been utilized by using ILTE platforms to manage the distribution.
