Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In August, investors financed 1.01M EUR of agricultural projects through HeavyFinance, with the capital spread across 43 different loans.
In total, 41.61M EUR was issued to the farmers until the end of August 2023. The repayment volume is increasing on a YOY basis and the HeavyFinance investor community is being rewarded in the form of interest and delay interest. To date, the principal of 15.13M EUR has already been repaid to investors with 4.02M EUR in interest and 515K in delayed interest. During August our investors received 685K EUR in repayments – 459K EUR principal, 195K EUR interest, and 30K in delayed interest. 1.07M EUR of repayments are scheduled for September.
As of now, based on the repayment schedule, 74.6% 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 5.15M EUR representing 12.4% of the total issued amount.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 89.0% | 2.7% | 2.8% | 1.1% | 4.3% |
A | 77.8% | 4.0% | 0.9% | 1.6% | 15.7% |
B+ | 73.9% | 10.4% | 7.3% | 2.3% | 6.2% |
B | 75.1% | 7.0% | 3.3% | 2.5% | 12.0% |
C+ | 54.8% | 8.2% | 5.9% | 19.3% | 11.8% |
C | 56.1% | 4.8% | 4.1% | 2.6% | 32.3% |
Total | 74.6% | 6.6% | 3.6% | 2.8% | 12.4% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 73.0% | 11.1% | 5.0% | 5.8% | 5.1% |
Latvia | 84.2% | 4.7% | 0.2% | 0.8% | 10.0% |
Lithuania | 81.8% | 3.4% | 1.3% | 1.4% | 12.1% |
Poland | 50.6% | 14.6% | 11.8% | 5.9% | 17.0% |
Portugal | 45.0% | 18.2% | 10.3% | 8.6% | 17.9% |
Total | 74.6% | 6.6% | 3.6% | 2.8% | 12.4% |
For a more accurate view of farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayment delinquencies. As of now, 78.5% of the payments have either been made within the last 30 days or have already been settled in full.
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 | |
A+ | 89.0% | 6.8% | 0.3% | 3.1% | 0.7% | |
A | 81.4% | 2.8% | 0.3% | 8.9% | 6.6% | |
B+ | 79.1% | 14.0% | 1.3% | 3.9% | 1.6% | |
B | 78.5% | 7.0% | 3.0% | 8.2% | 3.3% | |
C+ | 59.7% | 22.3% | 0.9% | 15.3% | 1.8% | |
C | 64.6% | 4.2% | 6.9% | 20.9% | 3.4% | |
Total | 78.5% | 7.8% | 1.9% | 8.1% | 3.6% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 81.5% | 9.6% | 2.1% | 5.3% | 1.6% |
Latvia | 84.8% | 5.0% | 0.0% | 9.1% | 1.1% |
Lithuania | 84.4% | 4.1% | 1.3% | 7.2% | 3.1% |
Poland | 58.7% | 19.0% | 4.0% | 12.0% | 6.3% |
Portugal | 49.3% | 22.5% | 5.3% | 14.1% | 8.7% |
Total | 78.5% | 7.8% | 1.9% | 8.1% | 3.6% |
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules. For example, during Q1 of 2021, 1.16M EUR of loans were funded, of which 817K EUR has already been repaid along with 169K EUR of interest. 157K EUR is being paid on time and 145K 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 August
During August, 18 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 13.58% factual return rate. The highest return rate reached 19.8% while the lowest return rate was 9.9%. A total amount of 389K EUR was issued, with 78K EUR interest and 12K EUR delay interest received by investors for fully repaid loans in August.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualized rate of return |
LT0000800* | B | 14 | 15,000.00 | 933.72 | 1,051.94 | 19.80% |
PT0000794 | B | 14 | 15,000.00 | 1,856.54 | 852.03 | 17.21% |
LT0000433 | B | 20 | 10,000.00 | 1,949.99 | 698.62 | 16.42% |
LT0000261 | B | 23 | 10,000.00 | 2,091.91 | 0.00 | 16.39% |
LT0000348 | B | 21 | 10,000.00 | 2,318.66 | 10.96 | 15.83% |
LT0000044* | A | 31 | 37,000.00 | 6,819.44 | 2,684.28 | 15.11% |
LT0000883 | B+ | 12 | 8,000.00 | 675.44 | 146.23 | 14.74% |
PL0000990* | A+ | 10 | 13,000.00 | 1,343.24 | 104.03 | 14.46% |
LT0000364 | A | 21 | 7,000.00 | 1,471.79 | 0.00 | 14.38% |
PL0000893 | B+ | 12 | 9,500.00 | 1,204.54 | 25.86 | 13.61% |
PL0000894 | B | 13 | 11,760.00 | 1,483.98 | 31.65 | 13.50% |
LT0000314 | B | 22 | 4,500.00 | 771.21 | 12.25 | 13.26% |
LT0000012 | B | 34 | 132,000.00 | 41,410.15 | 6,553.05 | 13.21% |
LT0000998 | A | 8 | 15,000.00 | 1,339.87 | 0.00 | 13.18% |
LT0000708 | C+ | 15 | 11,000.00 | 1,393.00 | 12.30 | 12.80% |
LT0001207 | A | 6 | 11,000.00 | 667.82 | 0.59 | 12.35% |
LT0001075 | A | 8 | 16,500.00 | 1,277.35 | 0.00 | 11.50% |
LT0000085 | A | 26 | 53,000.00 | 9,021.90 | 0.67 | 9.90% |
Total: | 389,260 | 78,686 | 12,184 |
*Three terminated loans were fully repaid in August 2023.
LT0000800 – terminated at 2023-06-13
The loan agreement was unsecured. By March 31, 2023, the borrower had managed to repay most of the debt and requested an extension until the receipt of NMA payments. However, as the promised funds were not received by June 13, 2023, HF terminated the loan agreement and initiated legal action for debt recovery. On July 25, 2023, the Vilnius District Court ruled in favor of HeavyFinance, granting the full claim. Although informed about the subsequent steps, the borrower requested another delay in the debt recovery process, intending to use the proceeds from the upcoming harvest to settle the debt. The debt was fully settled on August 23, 2023.
LT0000044- terminated at 2023-06-13
The loan agreement was secured with the agricultural machinery for soil tillage. Initially, the borrower coped with financial challenges by consistently delaying their repayment obligations. However, starting from February 17, 2023, no payments were made. In response, HeavyFinance took decisive steps to recover the debt, including official notices and, ultimately, terminating the loan agreement on June 13, 2023. The application for an enforcement order was made on June 13, with issuance expected by the end of July. The borrower was duly informed about the initiation of debt recovery proceedings and actively sought a new creditor for loan refinancing. After getting the enforcement order, HeavyFinance made a deal with a new creditor and secured the new loan with another mortgage. This allowed the HeavyFinance team to receive the necessary funds, paying off the remaining debt in full.
PL0000990- terminated at 2023-06-02
The loan agreement with implements as collateral, was initiated on October 17, 2022. Right from the first installment, the borrower started delaying payments. On May 9, 2023, a formal demand for payment was issued, allowing a 14-day window to settle the debt. However, since the borrower failed to comply, the loan agreement was terminated on June 2, 2023, leading to the commencement of enforcement proceedings. As of August 7, 2023, preparations were in progress for a settlement agreement. On August 27, 2023, the HeavyFinance recovery team successfully retrieved the entire outstanding amount from the borrower, eliminating the need for any legal action.
Recovery
During August 2023, 95.5K 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 1.12M EUR.
The chart below represents recovery in time. The principal amount which defaulted in 2021 H2 is recovered in full with interest, setting a 110.35% recovery rate.
Happy investing!
HeavyFinanceTeam
