Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In October, investors invested a total of 2.20M EUR in agricultural projects through HeavyFinance. 1.75M EUR was paid out to the farmers with the capital spread across 48 different loans.
In total, 44.72M EUR was issued to the farmers until the end of October 2023. The repayment volume is increasing on a YOY basis and the HeavyFinance investor community is being rewarded in the form of interest and delayed interest. To date, the principal of 16.83M EUR has already been repaid to investors with 4.23M EUR in interest and 646K in delayed interest. During October our investors received 1.23M EUR in repayments – 921K EUR principal, 209K EUR interest, and 100K in delay interest. 100K EUR of repayments are scheduled for November.
As of now, based on the repayment schedule, 74.8% 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 5.90M EUR representing 13.2% 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, 80.8% 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 October
During October, 35 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 13.08% factual return rate. The highest return rate reached 17.42% while the lowest return rate was 10.18%. A total amount of 597K EUR was issued, with 115K EUR interest and 2K EUR delay interest received by investors for the fully repaid loans in October.
*One terminated loan was fully repaid in October 2023.
BG0000833 terminated on 2023-07-10
The loan agreement was secured with the personal debtor’s liability. The debtor failed to make a payment for the period of 2023-04-14. Consequently, HeavyFinance initiated debt recovery actions, sent official notices, and eventually terminated the loan agreement on July 10, 2023. After the loan agreement was terminated, the debtor settled all the loans herself and covered them in two payments.
Recovery
During October 2023, 133.7K 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 1.5M 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.
We are entering the period where farmers are receiving payments from the harvest, so an increase in repayments is expected throughout this quarter.
Happy investing!
HeavyFinance team
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