HeavyFinance has recently shared its latest platform performance review for the month of March 2024.
In March, a total of €843,000 was “invested and distributed across 29 agricultural projects” available on the HeavyFinance platform.
As of the end of March 2024, a significant sum of €53.42 million was “issued in loans since the inception of HeavyFinance.”
A positive trend worthy of mentioning is “that year over year, we’re seeing a significant increase in repayment volumes.”
Their investors are “seeing direct benefits of this in the form of interest with additional earnings from delayed interest.”
To date, the principal of 23.15M EUR has “already been repaid to investors with 5.36M EUR in interest and 918K in delayed interest.”
During March their investors “received 993K EUR in repayments – of which 764K EUR principal, 187K EUR in interest, and 42K in delay interest. 993K EUR of repayments are scheduled for April 2024.”
As of now, based on the repayment schedule, 71.8% 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 9.09M EUR representing 17.0% of the total issued amount.”
The increase in delinquencies “is seasonal and is expected to decrease in May and June when farmers will get the part of their yearly subsidies.”
As of now, 77.7% of the payments “have either been made within the last 30 days or have already been fully settled.”
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).”
In March, 27 loans were “fully repaid to the HeavyFinance investors, which generated an average factual return rate of 13.81%.”
Notably, the factual return rate “ranged from 19.15% to 10.56%. The total issuance for the loans amounted to 552K EUR.”
Investors have reportedly “received 104K EUR in interest and 13.5K EUR in delayed interest for the loans that were fully repaid during March.”
Eight terminated loans were fully repaid in March 2024.
During March 2024, 266.6K 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 2.28M EUR.”
The principal amount that “defaulted in 2021 H2 is recovered in full with interest, resulting in a 110.35% recovery rate.”
The agricultural sector is notably “susceptible to seasonal fluctuations.”
Despite facing challenges, “particularly evident in Poland during the previous year, farmers are actively strategizing to fulfill their commitments and establish mutually beneficial solutions with the investor community of HeavyFinance.”
Overall, last year ended “on a high note but the HeavyFinance team continues to address the financing gap in agriculture.”
