Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
The HeavyFinance Performance Review
In February investors financed 1.39M EUR of agricultural projects through HeavyFinance, with the capital spread across 49 different loans.
In total, 32.5M EUR was issued to the farmers until the end of February 2023. To date, the principal 11.3M EUR has already been repaid to investors with 3.1M EUR in interest. During February our investors received 792K EUR in repayments – 600K EUR principal, 156K EUR interest, and 36K in delayed interest. 615K EUR of repayments are scheduled for March.
Currently, 72.3% of loans are being paid on time or have already been repaid. The overdue principal of more than 90 days is 2.16M EUR constituting a healthy level of 6.6% of the issued amount.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 84.8% | 5.3% | 9.0% | 0.0% | 0.9% |
A | 77.3% | 6.6% | 1.1% | 11.2% | 3.7% |
B+ | 72.2% | 17.5% | 5.1% | 2.0% | 3.2% |
B | 69.5% | 11.7% | 5.2% | 3.8% | 9.8% |
C+ | 65.0% | 17.2% | 10.2% | 5.9% | 1.7% |
C | 58.1% | 4.6% | 18.1% | 1.9% | 17.3% |
Total | 72.3% | 10.4% | 5.2% | 5.5% | 6.6% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 75.9% | 13.5% | 6.3% | 2.1% | 2.3% |
Latvia | 84.1% | 10.6% | 3.4% | 1.2% | 0.7% |
Lithuania | 75.3% | 7.1% | 4.1% | 6.5% | 7.0% |
Poland | 52.4% | 25.3% | 11.6% | 5.7% | 4.9% |
Portugal | 56.3% | 15.1% | 5.3% | 0.4% | 23.1% |
Total | 72.3% | 10.4% | 5.2% | 5.5% | 6.6% |
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter. For example, during Q3 of 2020, 451 thousand EUR of loans were funded, of which 431K EUR has already been repaid along with 53K EUR of interest. 11K EUR is being paid on time and 9 thousand EUR is overdue for more than 90 days. (If at least 1 instalment is overdue, we treat the whole principal amount as being late).
During February, 14 loans were fully repaid to the investors. The loans listed below generated an average of 14.02% factual return rate. The highest return rate reached 20.98% while the lowest return rate was 10.14%. The total amount of 409K was issued, with 51K interest and a 20K delay interest rate paid for fully repaid loans in February.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualized rate of return |
BG0001028 | B | 3 | 5,000 | 993 | 1 | 20.98% |
LT0000495 | B+ | 11 | 43,000 | 3,227 | 7,310 | 19.85% |
LT0000216 | A | 16 | 10,000 | 1,205 | 0 | 18.34% |
PT0000818 | B | 7 | 15,000 | 885 | 296 | 15.31% |
LT0000188 | B | 20 | 10,000 | 1,777 | 1,178 | 14.41% |
LT0000904 | A+ | 7 | 122,800 | 6,420 | 5,460 | 13.85% |
LT0000221 | A | 19 | 10,000 | 2,425 | 4 | 13.65% |
LT0000279 | B | 17 | 76,000 | 20,591 | 472 | 12.70% |
LT0000616 | B+ | 11 | 43,000 | 2,500 | 4,162 | 12.38% |
LT0000117 | A | 24 | 5,000 | 758 | 542 | 12.07% |
LT0000467 | B | 14 | 11,000 | 1,320 | 179 | 11.72% |
LT0000110 | A | 22 | 27,950 | 3,565 | 481 | 10.61% |
LT0000275 | B | 24 | 10,000 | 3,075 | 164 | 10.20% |
LT0000586 | B+ | 12 | 20,000 | 1,925 | 0 | 10.14% |
Total: | 408,750 | 50,666 | 20,249 |
Recovery
During February 2023, 154K EUR was recovered from defaulted loans and distributed to investors. The total recovered amount from defaults amounts to 1.1M EUR.
The chart below represents recovery in time, from the loans which defaulted in 2021, Q3 HeavyFinance already recovered with additional interest. 2021 Q4 loans first time defaulted after 12 months and HeavyFinance already recovered 76.44% in 18 months period.
Bulgaria
Since April 2021, 3.13M EUR of loans were issued in Bulgaria with 76% of these loans being paid on time or having been repaid already. Thus, earning investors 257K EUR of interest, with 73K EUR of principal being overdue for over 90 days.
In February alone investors received 37K EUR from Bulgarian farmers – 20K principal, 16K interest, and 1K delay interest.
The distribution of delay buckets is presented below:
A total of 242K EUR has reached the point of being 90 days overdue at some stage during the life cycle. 91K EUR has already been recovered and distributed to investors. While the loans that defaulted in March 2022 are fully recovered with additional interest. 88.1% of the loans defaulted in April 2022 have already been recovered.
Latvia
Since May 2021, 1.65M EUR of loans were issued in Latvia. 84% of loans issued are being paid on time or repaid already. Thus, earning investors 152K EUR of interest. 11.8K EUR of principal is being overdue for more than 90 days resulting in 0.7% of the total amount issued.
In February alone investors received 21K EUR from Latvian farmers – 9K principal, 11K interest, and 927 EUR delay interest.
The distribution of delay buckets is presented below:
2 loans amounting to 11.8K EUR are overdue more than 90 days. Both are in the recovery process.
Lithuania
Since June 2020, 22.5M EUR worth of loans were issued in Lithuania, 75% of loans issued are being paid on time or have been repaid already. Resulting in the investors earning 3.11M EUR of interest. While 1.58M EUR has been overdue for more than 90 days.
In February alone investors received 792K EUR from Lithuanian farmers – 600K principal, 156K interest and 36K delay interest.
The distribution of delay buckets is presented below:
A total of 3.25M EUR has at some point been 90 days overdue during its lifetime. 1M EUR has already been recovered and distributed to investors. Furthermore, loans defaulted in 2021 Q3 are fully recovered with additional interest.
Poland
Since December 2021, 3.96M EUR of loans have been issued in Poland. 52% of those are being paid on time or have already been repaid, 25% of loans fall into the ‘’less than 30 days” delay bucket, and as low as 5% of issued loans are in the “late more than 90 days ” bucket. Thus, earning the investors 233K EUR in interest. Whereas, 196K EUR has been overdue for more than 90 days.
In February alone investors received 98K EUR from Polish farmers – 66K principal, 26K interest, and 6K delay interest.
The distribution of delay buckets is presented below:
A total of 294K EUR has at one point been 90 days overdue during its lifetime. Since Poland is our newest market and all defaults are fresh – recovery takes time. At the moment 26K EUR has already been recovered and distributed to investors. In February, delay interest repayments reached the highest point which was an amount almost 4 times larger compared to the highest previous month’s delay interest.
The HeavyFinance team is keeping in touch with the farmers and is actively monitoring the situation. Many farmers promised to pay in the following weeks to cover all overdue amounts.
Portugal
Since December 2021, 1.31M EUR of loans have been issued in Portugal. 56% of those loans have been paid on time or already repaid. Thus, earning investors 123K EUR in interest. While 302K EUR has been overdue for a period of more than 90 days.
A significant share of the delinquency came from the non-collateralized loans, compelling us to halt the origination of such loans and redirect our focus to pledged loans. The recovery of uncollateralized loans takes time but we have some promising developments.
In February alone investors received over 16K EUR from Portuguese farmers – 8K principal, 8K interest, and 400 EUR delay interest.
The distribution of delay buckets is presented below:
A total of 312K EUR was 90 days overdue at some point during its lifetime. 13K EUR has already been recovered and distributed to investors.
We expect the overall Portugal portfolio performance to improve in the coming months, fuelled by the increased weight of pledge loans and the proceeds from the recovery actions done on the defaulted loans.
Happy investing!
HeavyFinance team
