GG Capital Europe Ltd is a trading company based in Estonia. For over 10 years they have been exporting and trading commodities to their clients in Sweden, Finland (supplies to more than 50% of Finland's firewood and charcoal market), Denmark, Spain, Israel and the Baltic regions. They now deliver firewood products to Greece, Ireland and Norway.
Their existing clients include Shell, Kanava, K-RAUTA, Motoral, Ingarö Fed, Norrort Ved, ICA, Kaminexperten.se, JSP Trading and their network of over 100 end customers.
They are now the biggest supplier to the Finnish market and deliver wood products to clients in Norway, Finland, Sweden, Denmark, the Baltics, Russia, Spain and Israel.
Trading seasons start in September each year. The season 2018/2019 has already started for GG Capital Europe's firewood trading company and it the fifth month into the season.
What is new in this season?
GG Capital has announced that they have entered the Greek, Irish and Norwegian markets and added alder wood to its other firewood products following clients' direct demand.
Alder wood has a lower energy efficiency than birch and is therefore better suited for sauna baths and cooking. Alder is now delivered to a number of customers in Finland and Sweden. A number of existing customers have also requested other types of heat products such as pellets and briquettes from them. This is because the product quality, customer care, delivery turnaround and the logistical solutions has been inferior from their previous suppliers.
Annual turnover is expected to be over 5 million euros with delivery of over 16,000 tons of wood and charcoal and 2019/2020 target delivery is 28,000 tons and over 8.5 million euros in turnover.
Every trading season, GG Capital signs up at least 2 to 3 new retail clients and 2 to 3 new suppliers.
New clients have been signed for the 2018/2019 with S Group and RTV, and existing clients have extended their orders throughout the 2019. Clients include:
S Group(www.s-kanava.fi/web/s/en/s-ryhma-lyhyesti): S Group is a Finnish network of companies operating in the retail and service sectors. It has more than 1,600 outlets in Finland. S Group comprises the cooperatives and SOK Corporation along with its subsidiaries.
RTV(www.rtv.fi): RTV-Yhtymä Oy is a large Finnish family owned company specializing in paints and surface materials such as wood. They are engaged in both retail and wholesale business and are a notable importer of wallpaper, ceramic tiles and floor coverings. RTV-Yhtymä Oy has 31 own stores in 30 different regions and our staff consists of 600 experts and over 500 employees.
Motoral (www.motoral.fi): One of the biggest wholesalers in Finland. Among other things, providing 150 Shell gas stations in Finland with firewood and barbecue charcoal.
Coop (www.coop.se): Sweden's second largest retail chain with 655 stores. Operations also in Denmark, Finland, Norway and the Baltic States.
K-rauta (www.k-rauta.fi): Wholly-owned subsidiary of Finland's largest trading group: Kesko Oyj. Operations in Sweden, Finland, Norway, the Baltic States and Russia.
GG Capital Team
Its team has been present in the Baltic region for over 15 years and have established a solid track record and good reputation regarding delivering high quality firewood products.
It’s founders and managing partners have been working in business development, finance and forestry trading industry.
The founding partners, Olof Gisslen and Mats Grube, joined forces 10 years ago to develop and provide high quality wood products. Through their trading experience they have noticed a gap and demand for high quality wood. With their experience in trading, they put their qualifications together to create an efficiently run trading operation.
Olof Gisslen, forestry expert,has over 20 years in forestry operations, trading and production. His partner Mats Grube comes from a financial and consulting background with over 20 years in trading in Switzerland, Scandinavia and the Baltic states.
During their careers, they have established close relationships with forestry producers, suppliers, logistical partners and wholesale clients.
What GG Capital use the funds for
The 12-month instrument was designed to meet the growing demand of their retail clients to deliver higher quantities.
Operations work very simply. GG Capital signs the agreements with clients on delivery quantities they can deliver. This means that in order to meet the growing demand of clients, GG Capital needed more working capital (cash) to further develop and scale up the trade with their new major retail chains that they are delivering to on a continuous basis.
Therefore, GG Capital has developed a 12-month fixed interest product, through which it funds its trading operations.
The fixed interest product has proven to work very well for both the company and investors over the last five years.
What are the benefits of such a fixed interest product
GG Capital identified that investors are looking for fixed interest income products but most available products lock investors for a minimum term of three to ten years.
GG Capital earns a minimum return of 30% at every delivery turnaround to clients, which is on average every 35 days. GG Capital ascertained they can offer a short term fixed interest product of 12 months.
“Thank you for introducing me to the firewood plan. After a year of investing, I am very happy with the plan and my interest is always paid on time directly to my bank account.” Linda
“I am very pleased with my Firewood Plan. All payments have been on time. I have been discussing this with my colleagues. I look forward to continuing my investments with you.” Dughall MacLaughlainn, ship captain
This provides the following benefits to investors:
Very short term of 12 months, with an option to extend for another 12 months.
Fixed interest rate of 9% per year, paid directly to investor’s bank account every quarter (monthly payments are also possible).
Allows investors to earn fixed income of their savings (minimum investment is 25,000EUR/USD/GBP.
Protects investors interest, as such type of investors have claims on assets before shareholders. Click here to find about more about how is the plan protected.
Allows investors to not lock in their funds for a lengthy period.
US citizens and residents are eligible.
No management or administration fees or charges.
What is the benefit for GG Capital:
Not all countries offer low interest rates on credit. In the Baltic states and Russia for example, interest rates on business loans may range from 15% to 25%. This makes it very difficult for businesses to borrow for expansion. Therefore, businesses look elsewhere to raise money.
Over the years GG Capital has built its fixed interest rate programme. Due to its success, it has decrease the interest rate from 12% in 2018 to 9%.
Working on such terms, the company has easier access to working capital allowing them to expand their operations by increasing their delivery quantity to meet clients’ demands, thus increasing profits. At the same time preserving company ownership.
For more information please contact us.
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