Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
December marks a milestone month for HeavyFinance, setting a new record in monthly investment inflows. A remarkable 3.62 million EUR was committed by investors, with an impressive 3.51 million EUR fully financing 86 farmer loans in just one month. This outstanding performance has propelled our total loan issuance to an incredible 67.2 million EUR since inception, reinforcing our commitment to empowering farmers and driving sustainable growth.
To date, farmers have successfully repaid 33.31 million EUR in principal to our investors, along with 6.97 million EUR in interest and 1.35 million EUR in delayed interest. In December alone, investors received 2.34 million EUR in repayments, including 2.11M EUR in principal, 186K EUR in interest, and 51K EUR in delayed interest. Looking ahead, 0.94 million EUR in repayments is scheduled for January 2021.
Based on the repayment schedule, 74.8% 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 9.69M EUR representing 14.4% 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, 80.8% 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 3.65M EUR has already been repaid along with 661K EUR of interest. 31K EUR is overdue for less than 90 days and 305K 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 December
In December, 72 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 13.82%. Notably, the factual return rate ranged from 18.45% to 7.53%. The total issuance for the loans amounted to 1.64M EUR. Investors received 344K EUR in interest and 19K EUR in delayed interest for the loans that were fully repaid during December.
*seven terminated loans were fully repaid in December 2024.
LT0001032 – Terminated on 2024-12-30
The loan agreement was uncollateralized. Due to the borrower’s economic situation, payments were often delayed but still made. In September 2024, the repayment schedule ended, and the borrower was informed that all overdue payments needed to be settled in full. Although partial payments continued, UAB Heavy Finance warned that if the debt wasn’t fully repaid, legal action would follow.
On December 30, 2024, the borrower repaid the remaining debt in full, avoiding court proceedings. This outcome shows how clear communication and firm deadlines can effectively resolve uncollateralized loans without legal enforcement.
PL0000969, PL0000855, PL0000856 – Terminated on 2024-12-17
Three loans of the same debtor were secured with land and machinery. The borrower initially faced difficulties with repayments, leading HeavyFinance to terminate the loans and take the case to court on February 26, 2024. A peace agreement was reached with the borrower, covering all his loans, and he resumed making partial payments. However, after a few months, the borrower once again stopped repayments.
HeavyFinance terminated the peace agreement and communicated with the borrower, emphasizing the consequences and the speed of potential legal enforcement, as the required court documents were already prepared. In response, the borrower sought financial assistance from an external firm. HeavyFinance continued negotiations, providing the necessary documentation to facilitate repayment.
The borrower repaid the full outstanding debt on December 27, 2024, resolving the case without further legal action.
BG0000992 and BG0001034 – Terminated on 2023-07-24 and 2023-08-10
The loans BG0000992 and BG0001034 were issued to the same debtor. Both loans were uncollateralized, which made recovery more challenging when the borrower refused to pay.
In the case of BG0000992, our legal team discovered that the debtor owned property (land). We initiated a lawsuit, obtained a court decision, and started the enforcement process. Upon learning about the court ruling, the debtor tried to transfer the property to their mother to avoid repayment.
Our lawyer quickly filed a complaint, and the court canceled the fraudulent transfer and blocked the property. Realizing there was no way to avoid repayment, the debtor hired a lawyer to negotiate with us. These negotiations led to an out-of-court agreement, and the debtor began following the new payment plan. The funds recovered allowed us to fully close both loans.
Recovery
During December 2024, 180.9K 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 3.69M EUR.
The chart below represents recovery in time. The principal amount that defaulted in 2021 Q3 is recovered in full with interest, resulting in a 110.35% recovery rate.
An exciting update from December is that the Multitude Bank fund came into effect and within 24 hours over 1 million EUR was distributed amongst our projects. Overall, Multitude Bank will invest 14 million EUR in loans for small and medium-sized agricultural businesses to support their transition to sustainable farming practices.
Make sure to visit our project page to make your investment count.
Happy investing!
HeavyFinance team
