Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
As summer draws to a close, we’re excited to share that August wrapped up on a high note for our investor community. This month saw a substantial 1.36 million EUR invested across 32 agricultural projects on the HeavyFinance platform. With this latest influx, our total loan issuance since inception has surged to 59.43 million EUR.
To date, we have successfully repaid 26.83 million EUR in principal to our investors, along with 6.23 million EUR in interest and 1.16 million EUR in delayed interest. In August alone, investors received 1.23 million EUR in repayments, including 977K EUR in principal, 186K EUR in interest, and 54K EUR in delayed interest. Looking ahead, 0.87 million EUR in repayments are scheduled for September 2024.
Based on the repayment schedule, 75.3% of loans are being paid on time or have already been repaid. Meanwhile, loans with a principal overdue by more than 90 days amount to 9.93M EUR representing 16.7% of the total issued amount.
The following table demonstrates the farmers’ repayment habits in a more detailed manner by depicting loans with factual repayment delinquencies. As of now, 81.0% of the payments have either been made within the last 30 days or have already been fully settled.
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules. For example, during Q2 of 2021, 4.01M EUR of loans were funded, of which 3.59M EUR has already been repaid along with 649K EUR of interest. 35K EUR is overdue for less than 90 days and 314K EUR is overdue for over 90 days. (If at least 1 installment is overdue, we treat the whole principal amount as being late).
Fully repaid loans in August
In August, 47 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 13.43%. Notably, the factual return rate ranged from 19.23% to 9.87%. The total issuance for the loans amounted to 974K EUR. Investors received 172K EUR in interest and 22K EUR in delayed interest for the loans that were fully repaid during August.
*six terminated loans were fully repaid in August 2024.
BG0001118 Terminated on 2024-01-08
The loan agreement was terminated on January 8, 2024, was uncollateralized, making the recovery process particularly difficult. Initially, there was little hope of recovering the amount, as the borrower’s family – his wife and daughter – had also taken out loans. Throughout the process, the borrower made multiple promises to repay the loan, including sending a letter committing to full repayment by mid-April.
However, after a thorough investigation into his financial status, it was discovered that the borrower owned both land and a house in his name. This property had been inherited from his parents, which allowed the bailiff to act quickly. The assets were frozen forcing the debtor to cover his debt.
BG0001143 Terminated on 2023-12-01
The loan agreement terminated on December 1, 2023, was uncollateralized and presented several complications. The borrower had repeatedly assured that he would resolve the debt but failed to follow through. He sent over ten messages via Viber claiming to be outside of Bulgaria, in Turkey, with no intention of returning soon. He promised to call upon his return, but that never happened.
The case encountered further difficulties in court, as there were objections. However, the attorney successfully navigated these challenges by pointing out that the contract specified that it must be adjudicated in a Lithuanian court. The bailiff also managed to block all the borrower’s property, catching him off guard. The positive aspect of this case was that the borrower had land and property in his name, which provided a basis for the recovery efforts.
BG0000410 Terminated ad 2023-01-31
The loan agreement terminated on January 31, 2023, secured with agricultural land and buildings, encountered several complexities during the debt recovery process. The land beneath these buildings was owned by the state, which significantly reduced buyers’ interest in the auctions and posed additional challenges to the asset recovery efforts. Despite the lack of cooperation from the borrower, we initiated enforcement actions, including freezing his bank accounts and all related assets. This led a third party to step in and cover the outstanding debt on the borrower’s behalf, resulting in a full resolution of the loan.
PT0000449 Terminated ad 2022-07-08
The loan agreement terminated on July 8, 2022, was unsecured. Legal proceedings against the debtor were initiated on November 13, 2022. We successfully seized the debtor’s salary and bank accounts. Moreover, it was discovered that the debtor also owned property. An agreement was made, giving the debtor six months starting in January to make repayments. If the debtor complied, the property would not be subject to seizure and sale. The debtor stuck to the agreement, and the debt was fully settled within the given time frame.
LT0000094 Terminated on 2022-06-10
The loan agreement terminated on June 10, 2022, was secured by the land, heavy machinery, and attachments. Due to economic difficulties, the borrower was unable to meet the payment obligations. Although the borrower attempted to make partial payments on the overdue amounts, the payments were insufficient. As a result, debt recovery proceedings were initiated on February 8, 2023, leading to the issuance of an executive letter. Auctions were held for the pledged assets, but initially, no buyers participated. Eventually, the auction was successful, and only part of the pledged assets needed to be sold to cover the debt in full.
PL0000661 Terminated on 2022-07-12
The loan agreement was secured by the land. The borrower stopped making payments on November 27, 2022, causing significant delays. Legal proceedings were initiated through a writ of payment procedure. Following this, a request was submitted for updates on the case status. The court found no grounds to issue a payment order, and a copy of the lawsuit was delivered to the defendant. After several correspondences, including the defendant’s response in May 2024 and our reply, the case was referred to mediation. On August 12, 2024, after a settlement was reached during mediation, the debtor paid the full amount of the debt.
Recovery
During August 2024, 202.5K 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 2.93M EUR.
The chart below represents recovery in time. The principal amount that defaulted in 2021 H2 is recovered in full with interest, resulting in a 110.35% recovery rate.
A quick reminder: a few months ago, we updated our platform to include an estimation of the CO2 emissions being addressed in our projects to inform our investors of the impact they’re making on the environment. Additionally, for those interested in our Green Loans, we have launched a newsletter that covers monthly updates of the carbon credit market, and updates concerning our Carbon Farming Projects.
Make sure to visit our project page to make your investment count.
Happy investing!
HeavyFinance team
