Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In November, investors invested a total of 2.24M EUR in agricultural projects through HeavyFinance. 1.90M EUR was paid out for the farmers with the capital spread across 54 different loans.
As of November 2023, HeavyFinance has successfully issued a total of 46.63 million EUR in loans to farmers. Year over year, we’re seeing a significant increase in repayment volumes, which is a positive trend for our investor community. This increase directly benefits our investors, who are receiving returns in the form of interest and additional earnings from delayed interest. To date, the principal of 17.97M EUR has already been repaid to investors with 4.64M EUR in interest and 687K in delayed interest. During November our investors received 1.39M EUR in repayments – 1.14M EUR principal, 213K EUR interest, and 41K in delay interest. 3.7M EUR of repayments are scheduled for December.
As of now, based on the repayment schedule, 74.9% 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 5.94M EUR representing 12.7% of the total issued amount.
For a more accurate view of farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayment delinquencies. As of now, 81.6% 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 November
In November, HeavyFinance investors witnessed the full repayment of 33 loans, including 32 regular loans and the first Green Loan. The regular loans generated an impressive average factual return rate of 13.78%. Notably, the factual return rate ranged from a high of 18.84% to a low of 11.40%. The total issuance for regular loans amounted to 729,000 EUR, with an additional 110K EUR for the Green Loan. Investors received 131K EUR in interest and 10K EUR in delayed interest for the loans that were fully repaid during November.
Great news for investors in project LT0001331! The principal loan has been fully repaid in just six months. This swift repayment enables the investors to reinvest the funds in other promising loans. Additionally, they’ll continue to earn passive income from the sale of carbon credits generated by this project.
*Five terminated loans were fully repaid in November 2023.
LT0000009 terminated on 2022-11-29
The loan agreement, secured by heavy equipment, saw the debtor consistently failing to make payments according to the schedule. This led HeavyFinance to initiate debt recovery measures, send official notices, and ultimately terminate the agreement on November 29, 2022. Following termination, the debtor managed to settle all the loans without the involvement of a bailiff.
LT0000016 terminated on 2022-10-20
The loan agreement was secured with both land and heavy equipment. However, from the start, the debtor failed to follow the payment schedule. Consequently, HeavyFinance initiated debt recovery actions, issued official notices, and ultimately terminated the loan agreement on October 20, 2022. After the termination, the enforcement process was transferred to a bailiff.
Throughout the recovery proceedings, land plots were sold, and the proceeds nearly covered the entirety of the loan. To avoid redirecting the recovery efforts toward the pledged equipment, the debtor committed to fully settling the remaining debt in November.
LV0000264 And LV000697 terminated on 2023-04-14
Both loan agreements pertain to the same debtor. One of the agreements was secured by the debtor’s liability, while the other was secured with heavy machinery. The debtor defaulted on payments from January 25, 2023. In response, HeavyFinance initiated debt recovery procedures, issued official notices, and ultimately terminated both loan agreements on April 14, 2023.
Following the termination, the HeavyFinance recovery team successfully located buyers for the heavy machinery pledged by the borrower. The proceeds from the sale were sufficient to fully cover both of the debtor’s terminated loans.
LV0001221 terminated on 2023-09-19
The loan agreement was secured by the personal liability of the debtor. However, from the outset, the debtor consistently failed to make payments as per the agreed schedule. Consequently, HeavyFinance initiated debt recovery procedures, sent official notices, and ultimately terminated the loan agreement on September 19, 2023. Following the termination, the case progressed to court, and a court decision was reached. Nevertheless, HeavyFinance’s legal team successfully negotiated a voluntary settlement without involving a bailiff. The debtor fully covered the remaining outstanding amount.
Recovery
During November 2023, 206.3K 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 1.7M 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.
As the final quarter of the year comes to an end, we’re optimistic about the increased repayments from farmers, aided by the harvest and subsidy payments. This is a promising time for our investors, and we look forward to sharing more success stories with you.
Happy investing!
HeavyFinance team
