Questions and answers

Gårdskapital uses the funds to provide loans to agricultural businesses, enabling farmers to access capital for investments, operations, or expansion. The aim is to contribute to a shift toward more sustainable farming practices and the generational shift within the industry, while generating stable returns to investors. The loans are structured to align with the unique financial cycles of the agricultural sector.

Gårdskapital conducts thorough due diligence on borrowers and their suggested use-of-proceeds, assessing their financial stability, business potential, repayment capacity, as well as environmental aspects. The process is underpinned by proprietary risk models and an experienced Credit Committee. The loans are carefully structured to mitigate risks, with collateral or other security measures in place.

Returns are generated through the interest paid by borrowers on their loans. Gårdskapital collects repayments according to agreed terms and ensures that earnings are distributed to lenders.

In case of default, Gårdskapital follows a structured recovery process, including utilising collateral and guarantees. The impact of defaults is managed through robust risk management practices.

Performance and repayments can be monitored through Gårdskapital’s automated online portal, which provides detailed updates on loan activity and overall financial outcomes. Regular reports ensure transparency and accountability.