HeavyFinance has shared its latest platform performance review.
HeavyFinance has shared key highlights from the summer and July. The team notes that this period has proved to be a dynamic month for their investor community “with €1.33M allocated across 52 agricultural projects on the HeavyFinance platform.”
By the close of July 2024, the total loan issuance since the company’s inception “has reached €58.33M.”
To date, the principal of €25.85M has already “been repaid to investors with 6.05M EUR in interest and 1.09M in delayed interest.”
During July their investors “received €1.06M in repayments – of which 819K EUR principal, €185K in interest, and 52K in delay interest. €0.82M of repayments are scheduled for August 2024.”
Based on the repayment schedule, 74.7% 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 €9.86M representing 16.9% of the total issued amount.”
As of now, 80.2% of the payments have either been “made within the last 30 days or have already been fully settled.”
HeavyFinance has shared data that “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 of loans “were funded, of which €967K has already been repaid along with €195K of interest.”
€50K is overdue “for less than 90 days and €142K is overdue for over 90 days. (If at least 1 installment is overdue, they treat the whole principal amount as being late).”
In July, 28 loans were fully “repaid to the HeavyFinance investors, which generated an average factual return rate of 13.27%.”
Notably, the factual return rate “ranged from 19.78% to 9.74%.”
The total issuance for the loans “amounted to €731K.”
Investors received €120K in interest and €20K in “delayed interest for the loans that were fully repaid during July.”
During July 2024, €254.6K 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 €2.73M.”
The principal amount that “defaulted in 2021 H2 is recovered in full with interest, resulting in a 110.35% recovery rate.”
With the wheat harvest now complete “in most regions, many farmers are holding back on selling due to low prices, hoping for an increase.”
This period typically sees “a rise in loan applications as farmers seek to maximize their profits by delaying sales.”
Simultaneously, for those who aren’t “storing their crops, this is the time when sales occur, leading to the settlement of more loans.”
This week also marks the “beginning of planting for the 2025 season, with crops like rapeseed being sown.”
As farmers plan for the future, they may “require additional financing for their investments.”
Additionally, the Polish Ministry of Agriculture is “expected to offer extra financial support to farmers due to the current low wheat prices—a move likely influenced by the upcoming presidential elections.”
A few months ago, they “updated thei platform to include an estimation of the CO2 emissions being addressed in their projects to inform investors of the impact they’re making on the environment.”
Additionally, for those interested in their Green Loans, they have “launched a newsletter that covers monthly updates of the carbon credit market, and updates concerning Carbon Farming Projects.”