In May, we saw the investor community allocate a total of 1.04M EUR across 37 agricultural projects using the HeavyFinance platform. As of the end of May 2024, a significant sum of 55.92M EUR was issued in loans since the inception of the company.
To date, the principal of 24.58M EUR has already been repaid to investors with 5.71M EUR in interest and 1M in delayed interest. During May our investors received 893K EUR in repayments – of which 688K EUR principal, 174K EUR in interest, and 30K in delay interest. 841K EUR of repayments are scheduled for June 2024.
Based on the repayment schedule, 71.9% 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 9.74M EUR representing 17.4% 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, 79.2% 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 Q1 of 2021, 1.16M EUR of loans were funded, of which 967K EUR has already been repaid along with 195K EUR of interest. 0K EUR is being paid on time, 50K EUR is overdue for less than 90 days and 142K 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 May
In May, 25 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 14.09%. Notably, the factual return rate ranged from 25.32% to 8.63%. The total issuance for the loans amounted to 623K EUR. Investors received 118K EUR in interest and 11K EUR in delayed interest for the loans that were fully repaid during May.
*three terminated loans were fully repaid in May 2024.
LT000042 terminated on 2023-03-08
The loan agreement was established on January 12, 2021, with the borrower pledging ownership of a harvester and a front loader as collateral. The borrower encountered financial difficulties starting in the fall of 2022 and failed to make any payments after December 12, 2022. Consequently, HeavyFinance initiated debt recovery actions, sending official notices and ultimately terminating the loan agreement on February 24, 2023. On March 16, HeavyFinance applied to a notary for the issuance of an executive writ, which was granted on May 15. The borrower was informed about the initiation of the debt recovery process and actively sought creditors for loan refinancing. Additionally, the borrower requested a suspension of all recovery processes, as she had eight loan agreements that required refinancing. The borrower gradually repaid all the loans, including this one, using personal funds.
LT0001495 terminated on 2024-02-02
The loan agreement, secured with an agricultural plot of land, was terminated on February 2, 2024, and repaid ahead of schedule on 13th of May, 2024. No legal debt recovery actions were initiated for this loan as the borrower voluntarily settled the loan in full before the due date.
BG0001047 terminated on 2023-12-29
The loan agreement, with sole accountability, has been fully repaid. The borrower, a grape producer, faced unexpected financial challenges when an employee filed a lawsuit, resulting in court-frozen accounts and disrupting business operations. Despite typically being punctual with payments, the frozen funds constrained the borrower’s ability to settle debts. However, the borrower managed to secure some spare cash one month ago, which was promptly used to pay off this loan. It’s noteworthy that the borrower sought to avoid legal actions and cooperated with the HeavyFinance recovery team to settle the overdue amount peacefully.
Recovery
During May 2024, 72.5K 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 2.39M 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 110.35% recovery rate.
Right now, the agriculture sector is fully back in the swing of things, with all farmers back in the fields in preparation for harvest this summer, making this a perfect time to start investing.
Recently we have updated our platform to include an estimation of the CO2 emissions being addressed in our projects to inform our investors of the impact they’re making on the environment. Furthermore, for those interested in our Green Loans, we have launched a newsletter that covers monthly updates of the carbon credit market, this issue includes the latest selling prices for carbon credits generated through agriculture.
Make sure to visit our project page to put your money to work.
Happy investing!
HeavyFinance team
