In February, HeavyFinance saw a strong inflow of investments, with a total of 2.66 million EUR committed. Meanwhile, 2.65 million EUR was used to completely finance 63 farmer loans during the month. With this latest activity, our total loan issuance has reached 73.5 million EUR since inception.
To date, farmers have successfully repaid 36.85 million EUR in principal to our investors, along with 7.45 million EUR in interest and 1.55 million EUR in delayed interest. In February alone, investors received 2.06 million EUR in repayments, including 1.70M EUR in principal, 270K EUR in interest, and 82K EUR in delayed interest. Looking ahead, 0.82 million EUR in repayments is scheduled for March 2025.
Based on the repayment schedule, 80.2% 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 9.99M EUR representing 13.6% of the total issued amount.
The following table demonstrates the farmers’ repayment habits in a more detailed manner by depicting loans with factual repayment delinquencies. As of now, 82.2% 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 Q2 of 2021, 4.01M EUR of loans were funded, of which 3.66M EUR has already been repaid along with 662K EUR of interest. 28K EUR is overdue for less than 90 days and 303K 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 February
In February, 49 regular loans and 2 green loans were fully repaid to the HeavyFinance investors. Regular loans generated an average factual return rate of 15.30%. Notably, the factual return rate ranged from 28.14% to 11.44%. The total issuance for the loans amounted to 1.91M EUR. Investors received 337K EUR in interest and 41K EUR in delayed interest for the loans that were fully repaid during February.
*five terminated loans were fully repaid in February 2025.
PL0000646 – Terminated on 2023-05-25
The loan agreement PL0000646 was secured by land as collateral. After default, HeavyFinance terminated the loan and initiated legal proceedings. During this process, efforts were made to establish a voluntary enforcement agreement, but the borrower repeatedly delayed formalising it, citing health issues and other external factors.
Recognising the ongoing delays, HeavyFinance issued a final ultimatum, clearly stating that no further postponements would be accepted. When the borrower failed to appear before the notary as scheduled, legal enforcement actions moved forward. Faced with this firm stance, the borrower sought alternative financing and secured a private investor, ultimately repaying the outstanding debt in full.
PL0001064 – Terminated on 2023-09-08
The loan agreement PL0001064 was secured by livestock and land. HeavyFinance initiated legal proceedings through a writ of payment procedure. Initially, the claim was returned due to fiscal deficiencies on February 5, 2024, but these were corrected by February 8, 2024. The court issued a payment order on February 13, 2024, and sent the enforceable title to the plaintiff’s attorney on April 22, 2024.
An application for enforcement proceedings was submitted to the bailiff on May 6, 2024, but as of May 22, 2024, no case number had been assigned. The bailiff requested a deposit and later suspended proceedings due to ongoing arrangement approval processes. Seeing that HeavyFinance was not accepting any proposed restructuring, the debtor sought external assistance. A Polish institution (KOWR) that aids farmers took over the debt and repaid the loan in full.
PL0001251 and PL0001264 – Terminated on 2023-06-06
The loans PL0001251 and PL0001264 were issued to the same borrower and secured by land. Legal proceedings began on September 7, 2023, with a payment order filed under the writ of payment procedure. The court issued the order on November 24, 2023, after confirming the settlement of outstanding fees.
On January 10, 2024, HeavyFinance’s lawyers prepared an application for an enforcement clause. However, the debtor filed an objection, leading the court to schedule an informational meeting on May 27, 2024. Lawyers engaged a mediator to explore a settlement. The initial mediation session took place on May 14, 2024, culminating in a settlement agreement signed on June 12, 2024.
Despite this, the debtor failed to meet the agreed terms. HeavyFinance promptly applied for an enforcement clause, which was granted without delay. This allowed the bailiff to execute enforcement proceedings, successfully recovering the full outstanding debt.
LT0001376 – Terminated on 2025-01-24
The loan agreement LT0001376 was secured by heavy equipment as collateral. The borrower had fallen behind on payments, prompting HeavyFinance to initiate legal recovery measures. On January 27, 2025, a request was submitted to the notary to issue an enforcement document.
Following the notary’s procedures, the borrower was formally notified and given 20 days to settle the debt. This legal notice proved effective – on February 14, 2025, the borrower repaid the outstanding amount in full, avoiding further enforcement actions.
The case highlights how formal legal pressure, even at an early stage, can serve as a strong motivator for borrowers to fulfill their obligations, particularly when valuable collateral is involved.
Recovery
In February 2025, 2901.3K EUR was recovered from defaulted loans (loans in which the contract with the borrower was terminated and a hard recovery process initiated) and distributed to investors. The total recovered funds from defaulted loans amount to 4.06M EUR.
The chart below represents recovery in time. The principal amount that defaulted in 2021 H2 is recovered in full with interest, resulting in a 109.94% recovery rate.
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Happy investing!
HeavyFinance team
