Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In May, investors financed 1.80M EUR of agricultural projects through HeavyFinance, with the capital spread across 56 different loans.
In total, 37.89M EUR was issued to the farmers until the end of May 2023. The repayment volume is increasing on a YOY basis and the HeavyFinance investor community is rewarded in a form of interest and delay interest. To date, the principal of 13.21M EUR has already been repaid to investors with 3.2M EUR in interest and 0.44M in delay interest. During May our investors received 1.3M EUR in repayments – 1.02M EUR principal, 217K EUR interest, and 56K in delayed interest. 1.5M EUR of repayments are scheduled for June.
According to the repayment schedules, 76.2% of loans are being paid on time or have already been repaid. The overdue principal of more than 90 days is 4.02M EUR constituting a level of 10.6% of the issued amount.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 89.5% | 3.6% | 5.1% | 0.0% | 1.9% |
A | 79.2% | 3.6% | 2.2% | 0.3% | 14.6% |
B+ | 77.2% | 13.6% | 2.9% | 2.7% | 3.6% |
B | 75.6% | 8.5% | 2.5% | 2.5% | 11.0% |
C+ | 62.1% | 14.8% | 1.8% | 7.3% | 14.0% |
C | 56.7% | 5.6% | 8.4% | 9.4% | 19.9% |
Total | 76.2% | 7.9% | 2.9% | 2.3% | 10.6% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 81.4% | 11.1% | 2.9% | 0.5% | 4.1% |
Latvia | 82.8% | 7.2% | 0.6% | 0.0% | 9.4% |
Lithuania | 80.4% | 4.3% | 1.7% | 2.7% | 10.8% |
Poland | 53.2% | 21.6% | 9.4% | 2.0% | 13.8% |
Portugal | 67.5% | 12.7% | 4.2% | 3.4% | 12.2% |
Total | 76.2% | 7.9% | 2.9% | 2.3% | 10.6% |
For a more accurate view on farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayments delinquencies. Currently, 82.7% of payments were made in the last 30 days or have already been repaid.
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
A+ | 95.2% | 3.4% | 0.6% | 0.2% | 0.5% |
A | 82.9% | 3.3% | 0.5% | 6.7% | 6.7% |
B+ | 83.7% | 10.2% | 0.4% | 2.9% | 2.8% |
B | 82.7% | 6.8% | 2.7% | 5.5% | 2.3% |
C+ | 82.6% | 2.7% | 4.7% | 9.2% | 0.7% |
C | 63.3% | 20.4% | 3.2% | 10.2% | 2.8% |
Total | 82.7% | 6.8% | 1.6% | 5.4% | 3.5% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 88.5% | 5.9% | 0.6% | 4.0% | 1.0% |
Latvia | 84.6% | 5.4% | 0.0% | 10.0% | 0.0% |
Lithuania | 84.9% | 4.9% | 1.9% | 5.5% | 2.9% |
Poland | 69.0% | 18.2% | 1.1% | 3.8% | 7.8% |
Portugal | 78.0% | 4.8% | 3.1% | 6.9% | 7.1% |
Total | 82.7% | 6.8% | 1.6% | 5.4% | 3.5% |
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules. For example, during Q1 of 2021, 1.15M EUR of loans were funded, of which 817K EUR has already been repaid along with 169K EUR of interest. 157K EUR is being paid on time and 145K EUR is overdue for over 90 days. (If at least 1 instalment is overdue, we treat the whole principal amount as being late).
Fully recovered loans in May
During May, 26 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 15.97% factual return rate. The highest return rate reached 29.87% while the lowest return rate was 9.14%. The total amount of 935K EUR was issued, with 154K EUR interest and 25K EUR delay interest received by investors for fully repaid loans in May.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualized rate of return |
LT0001333 | A+ | 1 | 37,000.00 | 1,469.96 | 1.47 | 29.87% |
LT0000289 | B | 7 | 52,514.00 | 6,228.91 | 6,589.23 | 25.66% |
LT0000015 | C | 7 | 28,500.00 | 7,837.40 | 3,223.80 | 22.82% |
LT0000184 | B | 10 | 10,000.00 | 1,910.39 | 260.56 | 22.33% |
LT0000332 | C | 7 | 13,200.00 | 2,637.44 | 462.07 | 21.54% |
LT0000181 | B | 10 | 10,000.00 | 1,408.59 | 327.03 | 20.46% |
LT0000409 | B | 5 | 22,000.00 | 2,283.20 | 1,866.26 | 19.53% |
LT0000239 | B | 9 | 103,500.00 | 18,778.14 | 5,123.57 | 19.44% |
LT0000174 | B | 10 | 21,500.00 | 3,304.02 | 770.04 | 18.87% |
LT0000160 | B | 11 | 13,500.00 | 2,298.47 | 468.03 | 17.51% |
LT0000475 | B | 4 | 11,000.00 | 1,830.30 | 0.00 | 15.91% |
LT0000185 | B | 10 | 119,500.00 | 26,461.57 | 3,431.55 | 15.90% |
LT0000425 | B | 5 | 13,000.00 | 2,532.83 | 0.48 | 15.64% |
LT0000248 | B | 9 | 10,000.00 | 2,148.83 | 0.00 | 15.41% |
LT0000460 | A | 5 | 11,000.00 | 1,946.23 | 0.00 | 14.62% |
LT0000702 | B | 0 | 11,000.00 | 1,485.00 | 0.00 | 14.36% |
LT0000389 | B | 6 | 12,000.00 | 1,879.62 | 0.75 | 13.71% |
LT0000225 | B | 9 | 102,000.00 | 20,681.07 | 13.56 | 13.59% |
BG0000313 | B | 7 | 32,530.00 | 3,217.27 | 176.67 | 13.50% |
BG0000595 | B | 2 | 10,390.00 | 1,192.91 | 44.74 | 13.42% |
LT0000018 | B | 6 | 41,200.00 | 7,553.38 | 2,162.61 | 12.42% |
LT0001005 | A+ | 6 | 20,000.00 | 1,211.84 | 0.00 | 11.59% |
LT0000408 | A | 5 | 103,000.00 | 14,403.07 | 88.62 | 11.58% |
LT0000376 | A | 6 | 24,000.00 | 3,758.99 | 0.00 | 11.39% |
LT0000017 | A | 7 | 77,500.00 | 13,843.04 | 0.00 | 9.22% |
PT0000087 | B | 1 | 25,000.00 | 2,604.91 | 0.00 | 9.14% |
Total: | 934,834 | 154,907 | 25,011 |
In May 2023, seven loans were terminated and fully repaid by HeavyFinance. The recovery process was effective in achieving this outcome.
HeavyFinance worked diligently with the borrowers throughout the collection process, seeking resolutions despite the encountered challenges. Four of the loans (LT0000015, LT0000160, LT0000332, and LT0000239) were successfully refinanced by another credit institution, indicating confidence in HeavyFinance’s loan portfolio. These loans were backed by valuable assets such as tractors and land plots.
To recover outstanding debts, HeavyFinance conducted an auction process, selling assets like a Fendt tractor and land plots. Though there were initial difficulties with non-payment from buyers in the first auction, repeat auctions were organized, leading to successful sales.
Through their efforts, HeavyFinance fully recovered the loans, including interest, penalties, and other payable amounts, through the auction process.
LT0000015 – 3/21/2023
Loan agreement was secured with equipment – a tractor, as well as real estate – land. However, the borrower failed to meet their obligations starting from November 26, 2022, which resulted in the initiation of collection actions. Reminders were sent on January 31, 2023, with a 14-day deadline to repay the debt. Later, on February 28, 2023, loan termination letters were issued. After the expiration of the delivery deadlines on March 21, 2023, the loan agreement was terminated, and a request for an enforcement order was submitted to a notary. Throughout the collection process, the HeavyFinance team actively communicated with the borrower to find a resolution. While the enforcement order was issued, the borrower refinanced the loan with another credit institution. The loans was fully recovered, and the services of a bailiff were not required.
LT0000184 – 3/8/2023
Unlike the previously mentioned agreement, loan agreement was provided without collateral. However, the borrower failed to meet their obligations starting from December 29, 2022, which led to the initiation of collection actions. Reminders were sent on January 17, 2023, with a 14-day deadline to repay the debt. Later, on February 27, 2023, loan termination letters were issued. After the expiration of the delivery deadlines on March 8, 2023, the loan agreement was terminated, and a request for debt recovery was submitted to the court. The court made a decision in favour of the lender, awarding the unpaid portion of the loan, interest, penalties, and other payable amounts. However, before the enforcement order was issued, the borrower fully repaid the debt on their own.
LT0000332 – 3/8/2023
The loan agreement was secured with land plots. Due to the borrower’s failure to meet their obligations starting from December 21, 2022, collection actions were initiated. Reminders were sent on January 17, 2023, with a 14-day deadline to repay the debt. Later, on February 27, 2023, loan termination letters were issued. After the expiration of the delivery deadlines on March 8, 2023, the loan agreement was terminated, and a request for an enforcement order was submitted to a notary. Throughout the collection process, the HeavyFinance team actively communicated with the borrower to find a resolution. While the enforcement order was issued, the borrower received a decision from a credit institution regarding loan refinancing.
LT0000239 – 3/8/2023
The loan agreement was secured with land plots. As the borrower failed to meet their obligations starting from December 29, 2022, collection actions were initiated. Reminders were sent on January 17, 2023, with a 14-day deadline to repay the debt. Subsequently, on February 22, 2023, loan termination letters were issued. After the expiration of the delivery deadlines on March 8, 2023, the loan agreement was terminated, and a request for an enforcement order was submitted to a notary. Throughout the collection process, the HeavyFinance team actively communicated with the borrower to find a resolution. While the enforcement order was issued, the borrower received a decision from a credit institution regarding loan refinancing.
LT0000174 – 3/8/2023
The loan agreement was secured with land plots. However, since December 29, 2022 the borrower failed to fulfil their obligations, collection actions were initiated. Reminders were sent on January 17, 2023, with a 14-day deadline to repay the debt. Subsequently, on February 22, 2023, loan termination letters were issued. After the deadlines for delivering these letters expired on March 8, 2023, the loan agreement was terminated. The HeavyFinance team actively communicated with the borrower throughout this process. It should be noted that the borrower received a decision from a credit institution regarding loan refinancing.
LT0000160 – 3/15/2023
The debtor’s loan agreement was secured with equipment – a tractor trailer. However, the borrower failed to meet their obligations starting from December 12, 2022, which resulted in the initiation of collection actions. Reminders were sent on January 31, 2023, with a 14-day deadline to repay the debt. Later, on March 8, 2023, loan termination letters were issued. After the expiration of the delivery deadlines on March 21, 2023, the loan agreement was terminated, and a request for an enforcement order was submitted to a notary. Throughout the collection process, the HeavyFinance team actively communicated with the borrower to find a resolution. While the enforcement order was issued, the borrower refinanced the loan with another credit institution.
LT0000018 – 2/14/2022
Debtor, under loan agreement, pledged two tractors and land as collateral. However, the debtor failed to fulfil their obligations starting from August 19, 2021, leading to the initiation of collection actions. After reminders and termination letters, the loan agreement was terminated on February 14, 2022. A notary was involved, and the enforcement order was issued.
The auction process was carried out by a bailiff. The Fendt tractor was sold in the first auction for 28,640 EUR, and the buyer failed to make the payment. The land was then sold for 20,540 EUR in the second auction, but the buyer did not fulfil their payment obligations. The New Holland tractor was also purchased in the second auction but went unpaid.
Repeat auctions were announced, and in the final auction, the Fendt tractor was sold for 28,640 EUR. Funds of 27,535.59 EUR were received for debt coverage. Similar repeat auctions were held for the remaining assets, with partial payments received from the participant’s fee. Ultimately, the land was sold for 9,900 EUR, and after deducting expenses, 9,519.23 EUR was received for debt coverage.
Through the auction process, the loan, interest, penalties, and other payable amounts were fully covered.
Recovery
During May 2023, 192K EUR was recovered from defaulted loans (loans, where the contract with the borrower is terminated and a hard recovery process was initiated) and distributed to investors. The total recovered funds from defaulted loans amount to 874K EUR.
The chart below represents recovery in time. The principal amount which defaulted in 2021 Q3 is recovered in full with interest, setting a 110.35% recovery rate.
Bulgaria
Since April 2021, 3.5M EUR of loans were issued in Bulgaria with 81.4% of these loans being paid on time or having been repaid already, earning investors 316K EUR of interest and 31K EUR of delay interest. 142K EUR of principal is being delinquent for more than 90 days.
In May alone investors received 93K EUR from Bulgarian farmers – 61K principal, 30K interest, and 2K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution of the delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 124K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in a hard recovery process with pledges being seized and auctioned off.
Latvia
Since May 2021, 1.81M EUR of loans were issued in Latvia. 82.8% of the loans issued are being paid on time or have been repaid already, earning investors 184K EUR of interest and 5K Eur of delay interest. 171K EUR of principal is being delinquent for more than 90 days.
In May alone investors received 17K EUR from Latvian farmers – 4K principal, 13K interest, and 97 EUR delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 190K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in court hearings.
Lithuania
Since June 2020, 25.36M EUR of loans were issued in Lithuania, and 80.4% of loans issued are being paid on time or have been repaid already, earning investors 2.3M EUR of interest and 358K EUR of delay interest. 2.75M EUR of principal is being delinquent for more than 90 days.
In May alone investors received 1.06M EUR from Lithuanian farmers – 893K principal, 125K interest, and 48K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 3.25M EUR reached default state at some stage during the life cycle. 858K EUR of defaulted loans have already been recovered, while the remaining loans amounting to 2.56M EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Poland
Since December 2021, 5.24M EUR of loans have been issued in Poland and 53.2% of those are being paid on time or have already been repaid, and 21.6% are being late for 30 days or less earning the investors 332K EUR in interest and 32K EUR in delay interest. 720K EUR of principal is being delinquent for more than 90 days.
In May alone investors received 97K EUR from Polish farmers – 57K principal, 35K interest, and 5K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 365K EUR reached default state at some stage during the life cycle. 16K EUR of defaulted loans have already been recovered, while the remaining loans amounting to 355K EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Portugal
Since December 2021, 1.97M EUR of loans have been issued in Portugal. 67.5% of those loans have been paid on time or have been already repaid, and 12.7% are paying late for 30 days or less, earning investors 160K EUR in interest and 11K EUR in delay interest. 241K EUR of principal is being delinquent for more than 90 days.
In May alone investors received over 28K EUR from Portuguese farmers – 14K principal, 4K interest, and 691 EUR delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 172K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in court hearings or in the legal negotiation phase to cover the debts.
A significant share of delinquencies came from the uncollateralised 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 the HeavyFinance team has some promising developments.
We expect the overall Portugal portfolio performance to improve in the coming months, fuelled by the increase in collateralised loans and the proceeds from the recovery of the defaulted loans.
Happy investing!
