Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In June, investors financed 992K EUR of agricultural projects through HeavyFinance, with the capital spread across 47 different loans.
In total, 39.44M EUR was issued to the farmers until the end of June 2023. The repayment volume is increasing on a YOY basis and the HeavyFinance investor community is rewarded in the form of interest and delay interest. To date, the principal of 14.32M EUR has already been repaid to investors with 3.65M EUR in interest and 463K in delay interest. During June our investors received 829K EUR in repayments – 608K EUR principal, 195K EUR interest, and 26K in delayed interest. 438K EUR of repayments are scheduled for July.
Currently, according to the repayment schedules, 78.7% of loans are being paid on time or have already been repaid. The overdue principal of more than 90 days is 4.12M EUR constituting a level of 10.5% of the issued amount.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 84.1% | 3.6% | 1.1% | 3.9% | 1.3% |
A | 76.5% | 4.4% | 1.2% | 2.3% | 13.5% |
B+ | 77.4% | 8.4% | 4.8% | 1.4% | 4.0% |
B | 74.7% | 5.1% | 2.3% | 1.6% | 11.0% |
C+ | 53.9% | 13.2% | 14.8% | 1.7% | 12.8% |
C | 59.5% | 3.0% | 6.9% | 5.4% | 23.9% |
Total | 78.7% | 5.7% | 3.1% | 2.1% | 10.5% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 77.8% | 13.2% | 4.4% | 0.7% | 3.9% |
Latvia | 88.9% | 1.1% | 0.0% | 0.6% | 9.4% |
Lithuania | 83.2% | 2.9% | 1.1% | 1.7% | 11.1% |
Poland | 55.4% | 15.4% | 13.3% | 5.2% | 10.6% |
Portugal | 76.6% | 4.5% | 1.9% | 2.7% | 14.4% |
Total | 78.7% | 5.7% | 3.1% | 2.1% | 10.5% |
For a more accurate view of farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayments delinquencies. Currently, 82.5% of payments were made in the last 30 days or have already been repaid.
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
A+ | 93.8% | 4.5% | 0.5% | 0.5% | 0.7% |
A | 80.2% | 4.1% | 1.7% | 7.2% | 6.8% |
B+ | 88.7% | 5.4% | 1.3% | 2.4% | 2.2% |
B | 83.5% | 3.9% | 3.6% | 6.1% | 3.0% |
C+ | 56.6% | 33.7% | 3.5% | 5.5% | 0.7% |
C | 69.8% | 10.3% | 11.5% | 7.5% | 1.0% |
Total | 82.5% | 5.7% | 2.9% | 5.4% | 3.5% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 81.4% | 8.6% | 3.8% | 3.9% | 2.3% |
Latvia | 88.9% | 0.2% | 0.0% | 10.0% | 0.8% |
Lithuania | 85.5% | 3.2% | 2.6% | 5.4% | 3.3% |
Poland | 67.0% | 18.1% | 5.3% | 3.6% | 6.1% |
Portugal | 83.3% | 3.6% | 0.4% | 8.3% | 4.4% |
Total | 82.5% | 5.7% | 2.9% | 5.4% | 3.5% |
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, 1.15M 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 instalment is overdue, we treat the whole principal amount as being late).
Fully covered loans in June
During June, 15 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 13.5% factual return rate. The highest return rate reached 33.85% while the lowest return rate was 11.18%. A total amount of 460K EUR was issued, with 98.42K EUR interest and 7.23K EUR delay interest received by investors for fully repaid loans in June.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualized rate of return |
LV0001056 | B+ | 5 | 15,000.00 | 2,179.81 | 81.09 | 33.85% |
BG0000803 | B+ | 12 | 7,500.00 | 989.27 | 0.00 | 17.28% |
LT0000302 | B | 20 | 12,000.00 | 1,996.01 | 1,270.95 | 16.12% |
PL0000978 | B | 8 | 36,239.00 | 3,568.15 | 46.38 | 15.89% |
LT0000534 | C | 16 | 32,200.00 | 5,624.54 | 1,008.71 | 15.29% |
LT0000644 | B | 14 | 15,000.00 | 1,802.74 | 5.88 | 14.87% |
LT0000176 | B | 23 | 38,600.00 | 50,225.03 | 1,421.59 | 13.46% |
LT0000177 | A | 24 | 10,000.00 | 1,354.48 | 0.00 | 13.09% |
LT0000780 | A | 12 | 16,000.00 | 1,442.04 | 0.00 | 12.42% |
LT0000829 | B+ | 11 | 15,000.00 | 1,622.02 | 0.00 | 12.13% |
LT0000796 | A | 11 | 60,000.00 | 6,702.75 | 43.95 | 11.99% |
LT0000589 | B | 15 | 101,640.00 | 10,046.12 | 3,224.01 | 11.74% |
LT0000553 | B+ | 15 | 45,900.00 | 5,655.00 | 0.00 | 11.49% |
LT0000610 | A | 14 | 15,000.00 | 1,689.71 | 92.40 | 11.38% |
LT0000909 | A | 9 | 40,000.00 | 3,524.87 | 32.23 | 11.18% |
Total: | 460,079 | 98,423 | 7,227 |
Three loans were terminated and fully repaid in June 2023, showcasing the dedication and effectiveness of HeavyFinance’s recovery process.
LT0000302 – Terminated on 2023-01-05
The loan agreement was secured with the personal debtor’s liability. On January 5th, the loan agreement was terminated, and a claim for debt recovery was submitted to the court. On February 20th, the court decided in favor of the lender, satisfying the request to recover the debt. The court order became enforceable after 20 days, and as a result, on March 16th, an enforcement order was issued and handed over to the bailiff to carry out the necessary recovery actions.
LT0000534 – Terminated on 2023-01-05
The loan agreement was secured with assets, and due to the borrower’s failure to fulfill their obligations, the agreement was terminated on January 5th, and a request for an enforcement order was submitted to the Notary. The enforcement order was issued on February 6th and subsequently handed over to the bailiff to initiate the necessary recovery actions. On April 20th, the bailiff issued an order for a property appraisal to determine its value. Upon receiving the appraisal value, the borrower approached the bailiff with a request to sell the collateralized assets to a proposed buyer at the price indicated in the appraisal report. HeavyFinance did not raise any objections and agreed to the proposal. As a result, the sale of these assets fully covered both LT0000302 and LT0000534 loans of the same debtor.
LV0001056 Terminated on 2023-04-14
The loan agreement was secured with the personal debtor’s liability. The agreement was terminated on April 14, 2023, and a lawsuit was filed for debt recovery. A court hearing was scheduled for June 1, 2023. After reviewing the court documents and hearing the decision, the borrower initiated discussions with HeavyFinance. They expressed their desire to resolve the matter without involving bailiffs. Taking matters into their own hands, the borrower made an early repayment on June 1, fully settling their outstanding debts.
Recovery
During June 2023, 146K 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 1.02M EUR.
The chart below represents recovery in time. The principal amount which defaulted in 2021 Q3 is recovered in full with interest, setting a 110.35% recovery rate.
Bulgaria
Since April 2021, 3.63M EUR of loans were issued in Bulgaria with 77.8% of these loans being paid on time or having been repaid already, earning investors 343K EUR of interest and 32K EUR of delayed interest. 142K EUR of principal is being delinquent for more than 90 days.
In June alone investors received 45.8K EUR from Bulgarian farmers – 23.1K principal, 21.6K interest, and 1K delay interest.
The distribution of delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution of the delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 155K EUR reached a default state at some stage during the life cycle. Currently, all of the defaulted loans are in a hard recovery process with pledges being seized and auctioned off.
Latvia
Since May 2021, 1.81M EUR of loans were issued in Latvia. 88.9% of the loans issued are being paid on time or have been repaid already, earning investors 204K EUR of interest and 5K Eur of delayed interest. 171K EUR of principal is being delinquent for more than 90 days.
In June alone investors received 49.71K EUR from Latvian farmers – 33.58K principal, 15.88K interest, and 255 EUR delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 200K EUR reached a default state at some stage during the life cycle. 22K EUR of defaulted loans have already been recovered, while the remaining loans amounting to 182K EUR are in legal proceedings.
Lithuania
Since June 2020, 26.29M EUR of loans were issued in Lithuania, and 83.2% of loans issued are being paid on time or have been repaid already, earning investors 2.59M EUR of interest and 378K EUR of delayed interest. 2.91M EUR of principal is being delinquent for more than 90 days.
In June alone investors received 561K EUR from Lithuanian farmers – 437K principal, 105K interest, and 18K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 3.27M EUR reached a default state at some stage during the life cycle. 977K EUR of defaulted loans has already been recovered, while the remaining loans amounting to 2.481M EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Poland
Since December 2021, 5.66M EUR of loans have been issued in Poland and 55.4% of those are being paid on time or have already been repaid, and 15.4% are being late for 30 days or less earning the investors 382K EUR in interest and 37K EUR in delay interest. 600K EUR of principal is being delinquent for more than 90 days.
In June alone investors received 136K EUR from Polish farmers – 94K principal, 38K interest, and 4K delay interest.
The distribution delinquency buckets according to the repayment schedules are presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 781K EUR reached a default state at some stage during the life cycle. 21K EUR of defaulted loans has already been recovered, while the remaining loans amounting to 769K EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Portugal
Since December 2021, 2.04M EUR of loans have been issued in Portugal. 76.6% of those loans have been paid on time or have been already repaid, and 4.5% are paying late for 30 days or less, earning investors 175K EUR in interest and 13K EUR in delay interest. 292K EUR of principal is being delinquent for more than 90 days.
In June alone investors received over 36K EUR from Portuguese farmers – 20K principal, 14K interest, and 2K EUR delay interest.
The distribution delinquency buckets according to the repayment schedules are presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 213K EUR reached a default state at some stage during the life cycle.
A significant share of delinquencies came from the uncollateralised loans, compelling us to halt the origination of such loans and redirect our focus to pledged loans. The recovery of uncollateralised loans takes time but the HeavyFinance team has some promising developments.
We expect the overall Portugal portfolio performance to improve in the coming months, fuelled by the increase in collateralised loans and the proceeds from the recovery of the defaulted loans.
Happy investing!
