The mowing season is already in full swing, therefore, farmers are looking for ways to prepare and dry the forage. Grain farmers are still spraying crops and waiting for the abundant harvest. usually, by the end of the season, the farmers run out of working capital, as most of it is already used for harvest preparation and the income from the sale of the harvest is not yet received.
In response to the needs of farmers, last month we introduced a new type of loan – loans up to 10.000 € secured by sole accountability. Typically, while investing in these loans you can earn higher interest by 2% compared to the same rating projects with the collateral. We are happy that our investor community did not hesitate to invest in the new loans- in two weeks you financed 20 such loan projects.
These results also made a significant contribution to the overall monthly numbers – we paid out more than 1.6 million euros for the farmers in June. Your active involvement helps small and medium-sized farms to grow, therefore, we provide you with HeavyFinance results on what we achieved together with you in the last month.
Loans secured by sole accountability
From now the HeavyFinance provides smaller loans (up to 15.000 €), which are secured by the sole accountability of the project owner. Such loans are especially relevant in the second half of the summer, when extra money is needed to change worn-out small technical details, pay salaries to seasonal workers, etc. These loans are very convenient for farmers because they can be provided faster since less paperwork is required in the absence of collateral. Conditions of these loans are also acceptable to investors, as they can be sure that the invested money starts earning interest earlier.
Although no specific assets are used to secure the loan, a farmer borrowing as a natural person is liable for meeting the financial obligations with all personal assets. The good news is that this type of loan has a 2% higher interest rate than projects with the same rating with collateral. Learn more about these loans here.
Key results from June 2021
Amount of loan issued: 1.607.645 euros
During May HeavyFinnace issued 45 loans*.
*Fact that a loan is issued is the date the loan is financed by investors.
The cumulative amount issued: 7,8 million euros
Number of registered investors: 173 new investors have registered during the previous month. At the beginning of last month, when we celebrated the first year of HeavyFinance, we crossed the threshold of 2,000 investors.
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