HeavyFinance recovers over €260k from defaulted loans in March
European agricultural lender HeavyFinance managed to fully repay eight terminated loans in March, recovering €266,600 (£228,300) from defaulted loans.
These included loans that were terminated in 2021 and 2022 due to the borrowers encountering financial difficulties. This takes the total recovered amount from defaulted loans to €2.28m.
“The agricultural sector is notably susceptible to seasonal fluctuations,” the firm said in a blog post. “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.”
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In March, HeavyFinance helped finance 29 agricultural projects, distributing a total of €843,000 (£721,989) in investments.
This means that the platform had issued €53.42m worth of loans by the end of March 2024 since its inception.
In its portfolio performance review for the month, HeavyFinance also noted that it is seeing a significant increase in repayment volumes. To date, it has repaid €23.15m to investors with €5.36m in interest and €918,000 in delayed interest. During March, investors received €993,000 in repayments, of which €764,000 was the principal amount. There were 27 loans that were fully repaid over the month, generating an average return rate of 13.81 per cent.
It added that €993,000 of repayments are scheduled for April.
Based on this, 71.8 per cent of loans are being paid on time or have already been repaid. Only €9m worth of loans are overdue by more than 90 days, representing 17 per cent of the total issued amount. The delinquencies are expected to decrease in May and June when farmers get paid part of their yearly subsidies.
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