Flexipal is innovating the traditional segment and generating revenue of 600 million CZK.
Earn a compound annual return of 10,3 % with semi-annual interest payments and an annual return on investment paid directly into your account. The loan is secured primarily by real estate in Slovakia and the Czech Republic with a maximum LTV of 70%. The total three-year loan will be gradually repaid, thereby improving the investor’s position. Investing in Flexipal is the choice for the more conservative investor.
5 million pallets per year | 30+ B2B clients (Coca-Cola, IKEA, DHL, Kaufland, Heineken) | CZK 90 million in contracted revenue by 2026 | EY Entrepreneur of the year 2022 | patent
You are providing the loan directly to the Czech company Flexipal a.s., which ranks among the top 5 pallet manufacturers in the Czech Republic. However, the group also operates in Poland, Slovakia, and Hungary, generating revenue of CZK 600 million (EUR 24,7 million) and an operating profit margin of 6-9 %. It has long reinvested its profits in innovation, and the loan is intended to support the operation of so-called hybrid pallets, which are expected to boost competitiveness and drive the group’s growth alongside its established business. As an investor, you can diversify your portfolio by investing in a successful Czech company without bearing any exchange rate risk, since the investment is made in euros and will be repaid in euros as well.
Flexipal, in collaboration with Brno University of Technology, is working on the development of a hybrid pallet (HPAL) with a higher proportion of recycled plastic. In its production, the company uses plastic from recycling centers, which it sorts on its own production line, processes into granules, and then transforms into durable pallet components. They replace the most heavily stressed wooden components, resulting in a solution that is 6× stronger and has a 2× longer service life than traditional pallets. Hybrid pallets allow for the integration of RFID tracking and address the EU’s growing emphasis on sustainability and the circular economy. The line is already operating at 40 % capacity. The loan from this campaign will finance the transition to three-shift operations. The key growth driver is the company’s proprietary HPAL technology.
How much can you earn by investing in Flexipal?
An example of a EUR 10,000 investment in the form of a secured loan.
Investment -10.000 EUR | Interest income | Total pay | |
|---|---|---|---|
6. month | - | 510 EUR | 510 EUR |
12. month | 1.000 EUR | 510 EUR | 1.510 EUR |
18. month | - | 459 EUR | 450 EUR |
24. month | 4.000 EUR | 459 EUR | 4.459 EUR |
30. month | - | 255 EUR | 255 EUR |
36. month | 5.000 EUR | 255 EUR | 5.255 EUR |
10.000 EUR | 2.448 EUR | 12.448 EUR |
Interest is calculated as a margin of 7,5 % p.a. based on the 12M EURIBOR (in this example, we use 2,8 %), which is reviewed every 12 months from the date of disbursement. For simplicity, we use the 30/360 method in this example. The principal investment is paid out periodically (annually), and interest income is paid on a semi-annual basis.
Investment parameters
Type of investment | secured loan |
|---|---|
Due date | 36 months |
Revenue | 10,3 % p. a. (margin 7,5 % + 12M EURIBOR 2,8 %) |
Penalty interest | 1 % p. m. |
Interest payment | semi-annually |
Principal repayment | annually |
Security | Real estate in the CR + SR, LTV 70 % (gradually decreasing) |
Minimum investment | 1.000 EUR |
Credit score | B (low risk) |
Fees: Initial fee €0, ongoing fee €0, exit fee 1 % (one-time). Security: Notarized deed with direct enforceability + first-priority lien.
Purpose: working capital for 3-shift production
Why invest?
- 10,3 % p.a. with interest paid semi-annually + a late payment penalty of 1 % per month.
- Collateral - real estate in the CR (Kojetice complex, Vysočina region) and the SR (land near Trnava with a building permit) valued at EUR 1,88 million as first-lien collateral. LTV of 70 %, which is decreasing thanks to a fixed repayment schedule.
- A stable company with 10 years of operation, CZK 584 million in revenue, an EBITDA margin of 6-9 %, and 98,7 % of receivables paid within 30 days of the due date.
- Over 30 B2B customers, with the largest accounting for 20 % of revenue, long-standing relationships. CZK 90 million in contracted revenue for 2026.
- Preparedness for EU Regulation (PPWR) - HPAL hybrid pallets meet the requirements for 100 % recyclability and the circular economy, which will become increasingly important for logistics and retail companies starting in 2030.
Investment manager evaluation
Flexipal is not a startup, but an established 10-year-old company with revenues exceeding half a billion CZK and a stable B2B customer base. Its patented HPAL technology is transforming the traditional pallet sector into one focused on higher-value-added products and positioning the company to meet the growing demand for recyclable packaging solutions in the EU.
The company’s strength lies in its vertically integrated model-from wood processing and plastic recycling to pallet manufacturing, service, and logistics. The hybrid production line is already operational, but it is currently operating at only about 40 % of its capacity. The financing is intended to support the transition to three-shift operations and further scaling of production without the need for a new factory. The company has long maintained a stable EBITDA margin of 6-9 %, and the higher margins on hybrid pallets create room for further improvements in profitability.
The resulting risk profile of the investment is enhanced by real estate collateral in the Czech Republic and Slovakia. In our view, the combination of existing business, contracted revenue, and high-quality collateral therefore places this investment in Category B-that is, among the lower-risk opportunities within the private debt segment.
About the Company
Risks
Investing involves the risk of partial or total loss of the funds invested. The investment opportunity in the target company is facilitated through Crowdberry Investment Platform j. s. a.
