HeavyFinance, an alternative lending platform for agriculture, has funded over €10 million in only 16 months. The money was lent to European small and medium farmers, earning investors an average of 11.72% annual interest.
“From the very beginning, we focused on filling the gap of financial solutions for the agriculture sector. Close communication with both farmers and investors helps us to identify the needs of our potential customers and provide loans that are both attractive investment opportunities for investors and a desirable financing solution closely tailored to the individual needs of the farm, ” says Laimonas Noreika, CEO and co-founder of HeavyFinance.
According to the European Commission, the funding gap in the agricultural sector ranges from € 19,8 to € 46,6 billion in the EU. This funding is necessary to build an economically viable agricultural sector, to ensure the sustainability of small farms, new market entrants, young farmers, and enable those looking to modernize and implement the latest agricultural processes.
This healthy and fast paced growth is a sign that HeavyFinance is fulfilling its goal to reduce the shortage of agricultural financing – 300 granted loans with an impact of 10 Million euros in more than 20 thousand hectares of land farmed by our borrowers is a new milestone for HeavyFinance.
The strong commitment and engagement of our investors allowed 77% of the published loan projects to be fully funded in one day. The increasing appetite for agricultural loans from HeavyFinance’s investors helped us become the first choice for farmers looking for an efficient and quick financing solution – some of our farmers received the financing in one day and had their financed equipment in their yard the next day.
Agriculture is an attractive sector for investments. The global demand for agricultural production – as food – is constantly growing, making the sector more resilient to economic fluctuations.
Most of the loans published on HeavyFinance’s platform are collateralized, presenting an extra layer of safety – our investors place their capital mostly in loans secured by liquid assets like heavy agricultural machinery, or a pledge of land, whose value is historically prone to increases.
Our investors can also increase their portfolio growth more significantly when investing in small loans – projects up to 10.000 euros – that are secured only by sole accountability of the project owner. In this case there is no pledge of collateral, but the borrower, as a natural person, is liable for the loan with his personal assets.
This solution is particularly relevant for farmers in need of additional capital for harvesting or sowing, as the whole financing process is even faster. Investors who choose to fund these small loans earn a 2% higher interest rate than the regular loans with the same risk but with collateral.
Equipment vendors partner with HeavyFinance
Some farmers learn about HeavyFinance financing solutions while contacting the vendors of new or used heavy agricultural machinery. The equipment sellers often recommend HeavyFinance to their customers, since the short period of loan granting and the individual loan repayment schedule make the borrowing for the farmers more convenient.
“We maintain close contacts with equipment sellers, who refer farmers looking for financing to us – we already have at least 40 farmers who have learned about HeavyFinance from the recommendations of equipment vendors. Traditional financing institutions often do not identify the potential of young farmers and the aspirations of small agricultural businessmen to grow and expand, therefore more and more farmers consider HeavyFinance as the best option for the growth ”, says the head of the company.
The aim is to expand further in the European market
HeavyFinance currently operates in four countries, providing loans in Lithuania, Latvia, Portugal, and Bulgaria, and will expand its operation to Poland by the end of 2021.
But the investor base of our platform is global, as Investments in HeavyFinance loans are open to investors from all over the world.
Seeing these first 16 months results – 10 Million euros and 300 loans – we can proudly say that more than 2,800 registered investors worldwide became believers in the idea of helping and modernizing the agricultural sector.
Anyone can help farmers through HeavyFinance, since our platform accepts investments from 100 euros, and the current average investment in one project is 626 euros. So, welcome to HeavyFinance, start earning by making the difference now.