🔍 Detailed Analysis : "Avocado Processing" Project (8LENDS)

📄 Quick sheet

Here is an overview of the main features of this project, focused on avocado oil production in Kenya:

• Platform : 8LENDS (Maclear group)
• Project Name : Avocado Processing
• Borrower : Kathy & Ray Horticultures Limited
• Country / sector : Kenya / Avocado oil production (agro-industry)
• Objective : Finance the acquisition of equipment for a new avocado oil refinery
• Amount of the envelope : 750,000 EUR
• Yield rate : 23.20% APR
  
• Duration : 8 months
• Repayment : Principal repaid at maturity, interest paid monthly
• Collateral : A set of tangible assets (existing equipment, new factory, vehicle, cash reserves), for coverage of over 200%
• Announced collateral value : Over 1.56 million euros
• Buyback / buyback guarantee : No (8Lends operates in asset-backed lending; the guarantee = collateral)
• Minimum ticket : 100 USDC

📈 Financial performance

• She started her activities on August 2, 2017
• The company has shown consistent growth in its revenue and profitability from 2021 to 2024
• His gross profit increased by nearly 50% during this period
• She started the year 2025 with a debt-free balance sheet
• The forecasts for 2026 include an increase in revenue due to the addition of the refined oil production line, but net profit will be temporarily affected by debt repayment.

🔒 Guarantees & security: a very comfortable coverage

• The project is secured by a diverse set of tangible assets, including existing and upcoming production equipment, cash reserves, land, a factory, and even a personal vehicle of the founder.
• The total value of these assets exceeds 1.56 million euros, which represents a coverage of more than 200% of the loan
• The assets pledged as collateral are free of any encumbrances and have a resale value in the event of default.

🎯 Opportunities (investment thesis)

• Strategic growth : The loan finances an expansion that will allow the company to enter the highly profitable market of refined avocado oil
  
• Request approved : The company has already secured commercial interest and signed letters of intent with leading international B2B clients
  
• Over-collateralized : The LTV ratio of 48% and coverage of over 200% provide exceptional security for an entrepreneurship financing project
  
• Strong business model : The company has a history of growth, a clear cost structure, and proven profitability

⚠️ Risk Analysis (home score)

This project is supported by solid guarantees, but some risks still need to be taken into account :

Liquidity risk - Moderate

• The loan has a duration of 8 months with no secondary market, which locks up the capital until maturity.

Collateral valuation risk — Low to Moderate

• Although assets have a resale value, it may fluctuate depending on the market.

Execution risk — Moderate

• The success of the project depends on the proper execution of the installation work for the new refinery, as well as adherence to production and delivery deadlines.

Exchange risk — Low 

• By investing in USDC, your P&L in € will depend on the EUR/USDC exchange rate at the exit

🧪 Sensitivities & scenarios

• Base scenario : The project proceeds as planned. The company makes monthly payments and repays the principal at maturity, generating a return close to the announced rate of 23.20%
  
• Delay scenario : The refinery installation is delayed. Payments may be affected, but the company's cash reserves and low level of debt before this loan provide a cushion
  
• Default scenario : In the event of a prolonged default, investors would benefit from the sale of the collateralized assets (the value of which far exceeds the amount of the loan), significantly minimizing the risk of capital loss

✅ Investor Check-list (Due Diligence)

• Check client contracts : Ensure that the letters of intent and commercial contracts are valid and cover a significant portion of the expected production
• Understanding logistics : With the company being in Kenya, assess the risks related to the supply chain and exportation
• Ensure execution follow-up : Request information on the progress of equipment installation and commissioning
• Consider the size of the position : Although the project is well secured, it remains in a specific sector and geography. Maintain a position proportional to your portfolio

🎯 Verdict IndexP2P

This "asset-backed" project is very interesting due to its excellent 200% coverage on tangible assets. The company has a strong track record and is financing a strategic expansion with a clear development plan and orders already secured.

The only point of concern is the risk of execution and liquidity, related to the duration of the loan and the absence of a secondary market.

Verdict : An excellent project for a diversified portfolio, offering a very good risk/return ratio thanks to the strength of its guarantees.