Capitalia expands its offering to Mintos investors by placing business loans backed by car stock on the marketplace

We are happy to share two great news from Capitalia, the pan-Baltic business lender, with Mintos Rating B+.

Capitalia has expanded its offering by financing a fast-growing vehicle retailer’s Longo Group subsidiary Car Stock LVA and placing car loans to Mintos investors. 

Founded in 2017, Longo Group is a used car retailer operating in the Baltic states. The Company distinguishes itself by offering full transparency of the service history of the cars as well as a two-month (or 3000 km) warranty to its clients. Longo Group acquires cars from large partners in Western Europe, exports them to the Baltic States and then resales in their retail stations in Riga, Vilnius and Tallinn. Some of the equity investors of Longo Group and Mintos overlap.

In a short period of time, Longo Group has acquired a significant market share in the otherwise segmented industry by selling almost 200 cars a month. With the help of Capitalia financing they will be able to increase the growth of the Company even more:

Edgars Cērps, CEO of Longo Group “We are excited to enter into a partnership with Capitalia, one of the most established business lenders in the Baltics, and this cooperation will enable us to continue our rapid growth also in 2020. We look forward to scaling our business even more and cooperation with Capitalia will definitely help in that.”

Investors will be offered loans in the range of EUR 3,000-20,000 and term of 4 months. Each loan will be issued for acquisition and resale of a specific vehicle with an annual interest rate of 9-11%. (Capitalia will keep 5% skin in the game in each loan, which is going to be backed by a pledge on all assets of Car Stock LVA. In addition, Capitalia has a pledge on 100% of Car Stock LVA shares with a EUR 500,000 book value. Loans will not have a buy-back guarantee.

Capitalia EIF loans – now with buyback guarantee

Last year, Capitalia partnered with the European Investment Fund (EIF) to provide a guarantee instrument for financing small businesses in the Baltic States. Since launching the program, Capitalia has financed more than 70 companies for the total amount of EUR 800,000 with a guarantee from the EIF. Capitalia has offered these loans to Mintos investors since 2019.

To continue supporting the development of small businesses in the Baltic states, Capitalia will now offer EIF guaranteed loans to Mintos investors with a buyback guarantee from Capitalia SE. Capitalia will still maintain a high stake in each loan with 20% skin in the game. Loans with buy-back guarantee will be offered with a 6-8% interest rate. For Mintos investors, it means that in case of loan non-performance, investors will receive back the principal plus accrued interest 60 days after a late payment.

The European Investment Fund (EIF) is Europe’s main provider of risk financing for small and medium-sized enterprises (SMEs) and mid-caps. EIF delivers sources of funding including equity, debt and microfinance through its wide network of selected financial intermediaries in the EU-28 Member States and beyond. EIF is AAA rated by all three major rating agencies and has a strong capital base of EUR 4.5bn. 

The rating is based on EIF’s multilateral development bank status including a stable shareholding structure, a strong liquidity position and lack of outstanding debt. It reflects EIF’s good governance and prudent risk management. EIF is part of the EIB Group. EIF is  59.9% owned by the European Investment Bank (EIB), 28.1% by the European Union through the European Commission (EC), and 12% by 30 public and private financial institutions.


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