Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In October, we saw a total of 1.88 million EUR invested of which 53 agricultural projects amounting to 1.42M were paid out to the farmers. With this latest influx, our total loan issuance since inception has surged to 62.62 million EUR.
To date, farmers have successfully repaid 29.81 million EUR in principal to our investors, along with 6.62 million EUR in interest and 1.26 million EUR in delayed interest. In October alone, investors received 2.35 million EUR in repayments, including 2.11M EUR in principal, 189K EUR in interest, and 49K EUR in delayed interest. Looking ahead, 1.66 million EUR in repayments are scheduled for November 2024.
Based on the repayment schedule, 75.9% 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 9.78M EUR representing 15.8% 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, 78.8% 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 Q2 of 2021, 4.01M EUR of loans were funded, of which 3.60M EUR has already been repaid along with 658K EUR of interest. 34K EUR is overdue for less than 90 days and 305K 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
In October, 54 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 14.04%. Notably, the factual return rate ranged from 20.80% to 10.50%. The total issuance for the loans amounted to 990K EUR. Investors received 155K EUR in interest and 22K EUR in delayed interest for the loans that were fully repaid during October.
*six terminated loans were fully repaid in October 2024.
BG0000322 and BG0000359 – Terminated on 2023-11-15 and 2024-03-18
The loans BG0000322 and BG0000359 were connected, as they were issued to the same farmer. Both loans were secured by a mortgage on the borrower’s house and real estate. When the borrower struggled to meet payment obligations, HeavyFinance initiated recovery efforts and reminded the borrower of the potential consequences of losing the collateral.
This leverage proved effective—realizing the gravity of the situation, the borrower swiftly took action and repaid both loans in full using personal funds. The timely resolution underscored the power of strong collateral in ensuring compliance.
BG0001213 – Terminated on 2024-01-08
BG0001213 was an uncollateralized loan and the debtor had failed to meet payment obligations and displayed no intention of resolving the debt. Acting decisively, the bailiff assessed the debtor’s financial standing and moved to freeze all bank accounts without prior notice.
This unexpected action caught the borrower off guard, leaving no alternative but to repay the debt fully. The loan was successfully recovered without requiring further enforcement measures, highlighting the effectiveness of strategic judicial interventions in unsecured cases.
PT0001589 – Terminated on 2024-09-06
The loan was secured by agricultural machinery. From the beginning, the borrower struggled with timely payments. A pre-resolution letter sent in November 2023 helped stabilize payments by December. However, payment delays returned between January and March 2024, leading to additional pre-resolution letters in April, which temporarily resolved the issue.
In July 2024, a major default occurred, resulting in the loan agreement being revoked. After persistent efforts by the collections team, legal action was avoided, and the borrower repaid the loan in full.
PT0000645 – Terminated on 2023-05-02
The loan was backed by personal guarantees from the company’s shareholders. Financial difficulties began early, with missed payments starting in August 2022. Only two additional payments were made before the contract was terminated on 2023-07-03.
HeavyFinance attempted out-of-court solutions, but the borrowers failed to present any proposals. Legal action followed, with a lawsuit filed on 2023-10-27 and an enforcement order issued on 2023-12-12. By January 2024, attachment procedures led to the seizure of a 10-hectare agricultural plot worth €400,000. When the judicial sale process began, the borrowers repaid the debt in full, and the case was closed on 2024-10-18.
PT0000664 – Terminated on 2023-05-02
The loan was secured by personal guarantees from the company’s shareholders. Payment issues started in September 2022, with only two more payments made before the loan was terminated on 2023-09-11.
HeavyFinance’s attempts at an out-of-court settlement were unsuccessful. Legal proceedings began with a lawsuit filed on 2023-10-26 and an enforcement order issued on 2023-12-12. By January 2024, a 7-hectare agricultural plot worth €250,000 was seized. As the judicial sale process advanced, the borrowers repaid the debt in full, and the case was closed on 2024-10-18.
Recovery
During October 2024, 167.4K 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 3.35M 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.
We’d like to remind those interested in our Green Loans that we have launched a newsletter that covers monthly updates of the carbon credit market, interviews with our carbon farmers, and updates concerning our Carbon Farming Projects.
Make sure to visit our project page to make your investment count.
Happy investing!
HeavyFinance team
