July is one of the most intense periods for grain farmers – with the start of the harvest they start cultivating actively to meet this year\’s expectations. Although the yield is not expected to reach the record level due to the extreme heat, however, farmers still expect better results than last year.
Despite the fact that a lot of farmers were focused on harvesting, HeavyFinance investors still had plenty of opportunities to invest – 42 loan projects were fully financed during July. A large part of them were seasonal working capital loans up to € 10,000 backed by sole accountability. Such small loans without assets collateral are vital for farmers during harvesting season when some unexpected costs occur. Among investors, these loans also took root – by investing in these projects you not only contribute to the smooth harvesting season but also earn 2% higher interest rates compared to loans backed by collateral with the same risk rating.
However, another consequence of the beginning of the harvest is the increased delays in monthly loan interest payments. But it is a common situation due to several reasons. Firstly, it is the most intense period for grain farmers since during these weeks they\’re are cultivating the product they will be selling for almost the whole year. For them, harvesting now is the main thing they should focus on. And, of course, agriculture businesses rarely have stable monthly income because of seasonality. They receive the biggest part of their income during the autumn and winter seasons, therefore the situation will change soon since many farmers promise to cover late payments from the income received after the harvesting.
HeavyFinance at the HeavyFinance dairy farmers’ event
We are constantly trying to keep in touch with farmers and maintain close communication, therefore on July 23, we went to an event organized by the dairy farmers cooperative, where we talked with the farmers about their development plans and ideas, and why it is important to join cooperatives, especially, for small farmers. It is gratifying that most of them are positive and have brilliant ideas for growth, therefore we are more than ready to help implement them.
Key results from July 2021
Amount of loan issued: 900.348 €
During June HeavyFinnace issued 42 loans*.
*Fact that a loan is issued is the date the loan is financed by investors.
The cumulative amount issued: 8,5 million euros
The number of registered investors: 214 new investors registered during the previous month.