SWOT analysis of the project beneficiary:
Strengths - Rapid growth of the company (> 184% *), sustainable team that knows the specifics of its activities, successful development of business financing.
- The activities of the borrower are included in the public list of operators of crowdfunding platforms administered by the Bank of Lithuania.
- Company guarantee (bill)
* Please note that past performance is no guarantee of future results.
Weaknesses - Unequal regulation of funding activities and related activities in different Member States of the European Union, different requirements for supervisors
Opportunities - The borrower pays an annual interest rate of 10%.
Threats - Uncertain economic situation.
- Possible operational inspections, restrictions, sanctions.
IMPORTANT INFORMATION!
We draw your attention to the fact that in this case the purpose of the crowdfunding is to finance the development of LTD Nordstreet, the operator of the Nordstreet crowdfunding platform (hereinafter - the Platform).
Therefore, the Platform would also be a party to the loan agreement. This crowdfunding transaction involves additional potential risks and potential conflicts of interest. By financing its development on its Platform, LTD Nordstreet ensures that it will act in the best interests of its clients - investors, properly manage potential conflicts of interest and potential risks.
In this case, the loan is granted to LTD Nordstreet as the Borrower after assessing the reliability of LTD Nordstreet itself as the project owner in accordance with the Project Owners' Assessment Rules and assigning the project owner to the appropriate risk class based on objective evaluation criteria. Due to the fact that LTD Nordstreet is a party to the crowdfunding transaction during this transaction, there are additional risks due to the conflict of interest, which the Platform undertakes to manage properly. The loan of LTD Nordstreet will be administered in the same way as other loans, and in case of default, an external law firm would be used to represent the interests of the Lenders.
Risks related to the planned development of LTD Nordstreet
LTD Nordstreet plans to expand its activities and start conducting business financing activities in other European Union member states, and in the future - to operate in accordance with the Crowdfunding Financing Regulation. Enlargement involves potential uncertainties and risks that could adversely affect the success and results of such developments. Such risks include, but are not limited to, the risks associated with the laws and regulations of other Member States of the European Union applicable to financing activities, pledges of assets or other collateral, and the representation of Platform investors in other Member States. The company can use the services of certified experts and consultants to adapt its activities to the changes in the legislation of a specific European Union Member State. Risks are also related to the markets of other European Union member states, their trends and changes. LTD Nordstreet undertakes to make every effort to manage these risks during the planned development, if necessary, to use independent experts and (or) advisors for the activities.