To properly define a minimum rate, you must take into account expected market conditions and in particular the probability of the financing offer arousing a lot of interest for investors, obviously not forgetting the company's ability to fulfill its commitments.
Keep in mind that a lower rate doesn't necessarily mean you'll get paid less. A lower rate will allow you to have a greater probability of allocating the entire amount you intend to invest, but the profitability you will obtain will depend on what other investors bid.
Also remember that Daskapital advises investors to define minimum returns to be obtained through risk rating. To support investors in this exercise, Daskapital defines a Minimum Indicative Interest Rate (Tmin) based on the risk rating provided by an independent supplier.
For more information about Tmin click here.
