HeavyFinance seizes livestock in loan recovery case
HeavyFinance seized livestock during a loan recovery case last year, leading to the successful settlement of the loan.
However, the European agricultural lending platform reported delays due to difficulties in gathering the herd and securing an expert for the assessment of the animals. As a result, investors earned an additional €1,896.84 (£1,631.53) in delayed interest on the loan, bringing the total interest rate on the loan to 11.98 per cent.
During an end-of-year report, HeavyFinance revealed that two loan recovery operations were carried out in 2023. The other related to a €42,500 loan secured against heavy equipment. This loan was ultimately refinanced.
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HeavyFinance noted that by the end of 2023, its default recovery rate reached 110.35 per cent.
“As of now, based on the repayment schedule, 68.1 per cent of loans are being paid on time or have already been repaid,” said a platform representative.
“Meanwhile, loans with a principal overdue by more than 90 days amount to €6.42m, representing 13 per cent of the total issued amount.”
HeavyFinance works exclusively with farmers, with all loans secured against livestock, crops, or equipment.
By the end of December 2023, the platform had successfully issued a total of €49.34m in loans, and noted that it has seen an increase in repayment volumes.
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“Year over year, we’re seeing a significant increase in repayment volumes, which is a positive trend for our investor community,” said the platform representative.
“This has a direct benefit for our investors, who are receiving returns in the form of interest as well as additional earnings from delayed interest.
“To date, the principal of €20.02m has already been repaid to investors with €4.83m in interest and €732,000 in delayed interest.”
During the fourth quarter of 2023, HeavyFinance enhanced its recovery team across Lithuania, Poland and Portugal in anticipation of a rise in recoveries.
“Last year proved to be difficult for farmers in terms of harvest, so financing needs are still in high demand,” the platform added.
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