Terra Livonia

In Latvia, the loan originator LA LETTLAND has established a sustainable business model within the forestry sector. LA LETTLAND purchases timber, pulpwood, and wood chips from both individuals and businesses. Subsequently, these forest products are transported via trucks to major sea ports like Riga, Skulte, Ventspils, and Liepāja, or they are delivered to various companies located within Latvia. The wood products are primarily exported to Northern European countries, including Finland, Sweden, and Great Britain.

LA LETTLAND engages in two key revenue-generating activities. Firstly, they acquire timber and wood chips through direct purchases from suppliers or by stockpiling these materials. In doing so, they earn on these transactions. Additionally, the loan originator provides a crucial transportation service for each load, ensuring that it reaches a seaport. This transportation service further contributes to their revenue and profitability. The primary source of revenue and profit for LA LETTLAND stems from the swift acquisition of timber and various wood materials from individuals and businesses. The company’s ability to purchase these materials and settle payments within a single working day is crucial. This quick and efficient turnaround not only satisfies current clients but also encourages them to return for future transactions. The rapid liquidity and responsiveness in conducting business contribute to the company’s profit growth.

The recent conflict in Ukraine has significantly boosted the demand for renewable energy sources, such as wood chips and timber. As a result, the forestry industry has become more financially attractive than it has been in some time, making LA LETTLAND sustainable business model even more lucrative in the current market conditions.

LA LETTLAND from its business operations, creating a constant demand for working capital and immediate liquidity. This financial agility is vital for facilitating and concluding more deals. Each deal conducted by the company results in both revenue and profit. Terra Livonia funds are instrumental in this process, particularly when the precise load volume and profit can be determined. This is achievable because port companies provide detailed documentation specifying the amount of revenue generated by each load.

From this revenue, LA LETTLAND deducts a commission of 1 euro per cubic meter of timber and the transportation costs associated with the load. The remaining difference is promptly paid to the timber owner who sold the timber.

LA LETTLAND sends a transparent bill to the timber owner, allowing them to see the load’s cubic meter quantity. This transparent and efficient process ensures that clients frequently return for additional deals, which is crucial for sustaining the business model.

What sets this model apart is the remarkable speed with which LA LETTLAND processes each step: buying timber, transporting it to the port, obtaining load revenue documentation, and reimbursing the timber owner, all within a single working day. Port companies typically complete payments for timber loads within approximately 4 working days.

On a monthly basis (30 days), LA LETTLAND can cycle Terra Livonia funds through this system approximately 3-4 times, ensuring the timely repayment of these funds to investors, along with accrued interest, without encountering significant challenges. The average price for pulpwood and three-meter firewood in Latvia is around 50 euros, and these assets, acquired using investors’ funds, serve as security, assuring the protection of investors’ capital.