Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
The year ended on a high note as in December, HeavyFinance investors invested a total of 2.7M EUR in agricultural projects, with the capital spread across 64 different loans.
As of December 2023, HeavyFinance has successfully issued a total of 49.34 million EUR in loans. Year over year, we’re seeing a significant increase in repayment volumes, which is a positive trend for our investor community. This has a direct benefit for our investors, who are receiving returns in the form of interest as well as additional earnings from delayed interest. To date, the principal of 20.02M EUR has already been repaid to investors with 4.83M EUR in interest and 732K in delayed interest. During December our investors received 2.29M EUR in repayments – 2.05M EUR principal, 192K EUR interest, and 45K in delay interest. 2.27M EUR of repayments are scheduled for January 2024.
As of now, based on the repayment schedule, 68.1% 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 6.42M EUR representing 13.0% of the total issued amount.
The below table demonstrates the farmers’ repayment habits in a more accurate manner by depicting loans with factual repayment delinquencies. As of now, 78.4% 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 Q1 of 2021, 1.16M EUR of loans were funded, of which 876K EUR has already been repaid along with 186K EUR of interest. 82K EUR is being paid on time, 53K EUR is overdue for less than 90 days and 147K 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 December
In December, 52 loans were fully repaid to the HeavyFinance investors. They generated an average factual return rate of 12.54%. Notably, the factual return rate ranged from a high of 22.16% to a low of 10.25%. The total issuance for the loans amounted to 1.81M EUR. Investors received 165K EUR in interest and 9.6K EUR in delayed interest for the loans that were fully repaid during December.
*two terminated loans were fully repaid in December 2023.
LT0000431 terminated on 2023-03-08
The loan agreement was secured by livestock. The debtor failed to meet contractual obligations and make timely payments, thus HeavyFinance initiated the termination of the loan agreement, leading to the issuance of writ of execution on May 2, 2023. The process was then handed over to the bailiff. Throughout this period, the livestock pledged to HeavyFinance was seized, triggering the initiation of the livestock assessment procedure. The process encountered delays due to challenges in securing an expert for the assessment of biological assets, as well as the logistical difficulty of gathering the herd for evaluation in a single location. Importantly, the borrower maintained a cooperative stance, engaging in active communication with HeavyFinance. As a result, they successfully settled the loan by receiving NPA payments. The forced debt collection process has been effectively concluded.
LT0000630 terminated on 2023-07-31
The loan agreement, secured by heavy equipment, faced challenges due to a tough economic situation and adverse weather conditions that hindered the debtor’s ability to generate sufficient revenue to cover existing debts. As a result of payment delays, HeavyFinance’s recovery team initiated the termination of the loan agreement, leading to a rigorous recovery process. The writ of execution was issued on September 12, 2023. Despite the challenges, the debtor remained in active communication with the HeavyFinance team, putting forth considerable effort to settle the debt. Eventually, the loan was successfully refinanced.
Recovery
During December 2023, 216.9K 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 1.9M EUR.
The chart below represents recovery in time. The principal amount that defaulted in 2021 H2 is recovered in full with interest, setting a 110.35% recovery rate.
During Q4 of 2023 HeavyFinance enhanced its recovery team across Lithuania, Poland and Portugal, which is already showing an increase in recoveries. Last year proved to be difficult for farmers in terms of harvest, so financing needs are still in high demand. Keep an eye out for the newly listed projects available for financing.
Happy investing!
