Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In January, HeavyFinance saw a strong inflow of investments, with a total of 3.29 million EUR committed. Meanwhile, 3.34 million EUR was used to completely finance 78 farmer loans during the month. With this latest activity, our total loan issuance has reached 70.3 million EUR since inception.
To date, farmers have successfully repaid 35.15 million EUR in principal to our investors, along with 7.18 million EUR in interest and 1.47 million EUR in delayed interest. In January alone, investors received 2.16 million EUR in repayments, including 1.84M EUR in principal, 207K EUR in interest, and 116K EUR in delayed interest. Looking ahead, 0.69 million EUR in repayments is scheduled for February 2025.
Based on the repayment schedule, 78.0% 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 9.79M EUR representing 13.9% 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, 82.2% 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. 29K EUR is overdue for less than 90 days and 304K 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 January
In January, 55 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 14.76%. Notably, the factual return rate ranged from 33.87% to 10.7%. The total issuance for the loans amounted to 1.92M EUR. Investors received 379K EUR in interest and 45K EUR in delayed interest for the loans that were fully repaid during January.
*two terminated loans were fully repaid in January 2025.
PL0000970 – Terminated on 2024-02-26
This loan was the last outstanding debt of the borrower who previously had three other loans (PL0000969, PL0000855, and PL0000856) terminated in February 2024. All loans were secured with property and machinery.
Initially, due to financial difficulties, the borrower struggled with repayments, leading HeavyFinance to initiate legal action on February 26, 2024. A peace agreement was reached, covering all outstanding loans, and the borrower resumed partial payments. However, after a few months, payments ceased again, prompting HeavyFinance to terminate the agreement and prepare for enforcement.
As with the previous loans, the borrower sought external financial assistance to resolve the debt. HeavyFinance facilitated the process by maintaining negotiations and providing the necessary documentation. In January, the borrower successfully repaid the full outstanding balance, closing the final loan without the need for further legal proceedings.
This case highlights the effectiveness of strategic negotiation and legal preparedness in ensuring full debt recovery.
LT0000497 – Terminated on 2023-03-08
The loan agreement LT0000497 was secured by livestock as collateral. Due to economic difficulties, the borrower failed to meet payment obligations, leading HeavyFinance to initiate debt recovery proceedings on March 8, 2023. A writ of execution was issued, and enforcement actions began.
However, the borrower attempted to delay the process by refusing to present the pledged assets for evaluation, preventing auction proceedings. Meanwhile, the borrower sought refinancing with other financial institutions, but the process was prolonged. To ensure progress, HeavyFinance maintained continuous communication with the bailiff and closely monitored the refinancing attempts.
Ultimately, an auction for the pledged assets was announced, but no buyers participated. Faced with no alternative, the borrower repaid the debt in full, leading to the closure of the enforcement case. This proactive resolution prevented an extended forced recovery process.
Recovery
During January 2025, 221.3K 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 3.76M 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 109.94% recovery rate.
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Happy investing!
HeavyFinance team
