Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In September, we saw a total of 1.33 million EUR invested across 24 agricultural projects on the HeavyFinance platform. With this latest influx, our total loan issuance since inception has surged to 60.57 million EUR.
As a platform that has been operating from 2020, we are thrilled to have facilitated the investment of over 60 million euros into European agriculture. This money has been distributed across over 2,000 loans and to date, over 712 have been repaid, contributing an average interest rate of 13.16 % to our investor community.
To date, we have successfully repaid 27.68 million EUR in principal to our investors, along with 6.42 million EUR in interest and 1.20 million EUR in delayed interest. In September alone, investors received 1.09 million EUR in repayments, including 848K EUR in principal, 190K EUR in interest, and 49K EUR in delayed interest. Looking ahead, 2.29 million EUR in repayments are scheduled for October 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 9.23M EUR representing 15.2% 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, 81.0% 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 657K EUR of interest. 35K EUR is overdue for less than 90 days and 306K 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 September
In September, 26 loans were fully repaid to the HeavyFinance investors, which generated an average factual return rate of 14.24%. Notably, the factual return rate ranged from 18.55% to 11.24%. The total issuance for the loans amounted to 673K EUR. Investors received 134K EUR in interest and 24K EUR in delayed interest for the loans that were fully repaid during September.
*two terminated loans were fully repaid in September 2024.
LT0000120 Terminated on 2022-03-25
The loan agreement LT0000120 was secured by a tractor and grain dryer as collateral. Due to economic difficulties, the borrower failed to meet payment obligations. Debt recovery proceedings were initiated on May 30, 2022, resulting in the issuance of an executive letter. Despite this, the borrower remained in active communication with HeavyFinance and made partial payments toward the debt.
When the payments stopped, the pledged assets were put up for auction, and the borrower was informed of the opportunity to settle the remaining debt voluntarily. Ultimately, the borrower paid the remaining balance using personal funds, fully covering the debt and preventing the need for a forced sale of the collateral.
LT0000424 Terminated on 2023-03-10
The loan agreement LT0000424, was secured by the pledge of a land plot. Due to economic reasons, the borrower failed to meet payment obligations. As a result, on April 13, 2023, a debt recovery procedure was initiated, and a writ of execution was issued. The pledged property was sold at auction. However, on December 22, 2023, the debtor filed a complaint regarding the bailiff’s actions, and the enforcement process had to be suspended.
Each time the court rejected one complaint, the debtor would file another, thus prolonging the recovery process. Given the extended timeline, “Heavy Finance” opted to negotiate with the debtor. The first negotiations took place in May 2024, but no agreement was reached. A second round of negotiations occurred in September 2024, which proved successful. The debtor repaid the debt, and the enforcement case was closed.
This proactive resolution prevented a lengthy forced recovery process.
Recovery
During September 2024, 249.5K 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 3.19M 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.
A quick reminder: a few months ago, we 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. Additionally, for those interested in our Green Loans, we have launched a newsletter that covers monthly updates of the carbon credit market, and updates concerning our Carbon Farming Projects.
Make sure to visit our project page to make your investment count.
Happy investing!
HeavyFinance team
