HeavyFinance Review
Quick Overview
Platform Age
Launch Year
Loans Funded
Total Volume
Active Investors
Current Users
Average Loan Term
Months
-
Investment Focus
Agricultural loans secured by heavy machinery, farmland, and equipment. Includes innovative “Green Loans” for sustainable farming.
-
Expected Returns
10-15% average annual returns, with some loans offering up to 22.3% for higher-risk opportunities.
-
Safety Features
Collateralized loans with LTV ratios up to 70%. EU-regulated platform with ECSP license since July 2023.
-
Liquidity Options
Secondary market available with 1% selling fee. Loan durations range from 11-48 months with limited early exit options.
Standout Features
Green loans generating returns through carbon credits
Environmental impact alongside financial returns
Agricultural sector diversification opportunity
EU-regulated crowdfunding platform
Key Risk Factors
High default rates (22-27.7% by some metrics)
Agricultural sector vulnerable to weather conditions
Commodity price fluctuations affect loan performance
Significant payment delays reported by investors
Investment Calculator
Total Investment Value
Investment Strategy
Diversify across multiple agricultural loans with different risk profiles. Prioritize loans with lower LTV ratios (under 50%) and stronger collateral values.
Yield Comparison
How HeavyFinance returns compare to other investment options:
| Investment Type | Average Annual Return | Risk Level | Environmental Impact |
|---|---|---|---|
| HeavyFinance (Standard) | 10.00% – 15.00% | High | Positive (Agricultural Support) |
| HeavyFinance (Green Loans) | Variable (Carbon Credits) | High | Very Positive (Carbon Reduction) |
| Traditional P2P Platforms | 8.00% – 12.00% | Medium-High | Neutral |
| Agricultural REITs | 3.00% – 6.00% | Medium | Neutral to Positive |
| Green Bonds | 2.00% – 4.00% | Low-Medium | Positive |
| European Bank Deposits | 0.50% – 3.00% | Very Low | Neutral |
Note: While HeavyFinance offers high potential returns, actual performance is impacted by the high default rates in agricultural lending. Environmental impact considerations may provide additional value beyond financial returns.
Our Experience with HeavyFinance
We’ve been actively testing and investing with HeavyFinance since early 2023, with a test portfolio of €2,500 spread across different loan types. Here’s our detailed experience:
Our Test Portfolio Results
Loan Performance Analysis
Based on our test portfolio and platform data, we’ve observed significant variations in loan performance:
Polish Market Warning
Our analysis shows particularly concerning performance in the Polish market, where up to 42% of loans were delayed by more than 90 days. This appears to be partly due to grain price fluctuations following the Ukraine war, which made it difficult for farmers to sell their produce at expected prices.
What Impressed Us
- Innovative green investments with environmental impact
- All loans secured by tangible collateral
- Detailed loan information and transparency
- EU regulation and proper licensing
- Recent recovery efforts showing results (€221.3K recovered in January 2025)
Areas of Concern
- High default rates between 22-27.7% depending on calculation method
- Significant payment delays affecting portfolio liquidity
- Sector-specific risks affecting loan performance
- Loan extensions that significantly alter expected return timelines
- Relatively short track record (since 2020)
Recovery Performance
One notable aspect of our experience has been observing HeavyFinance’s recovery efforts:
- Total Recovered Funds: €3.76M from defaulted loans as of January 2025
- Recent Recovery: €221.3K recovered in January 2025 alone
- 2021 Defaults: Principal amounts defaulted in the second half of 2021 have been recovered in full with interest (109.94% recovery rate)
However, we’ve also seen concerning user reports about loan extensions and interest rate reductions that dramatically altered the expected investment terms, with one investor claiming a 12-month loan was extended to 204 months with significantly reduced interest rates.
Final Assessment
HeavyFinance offers a unique investment opportunity in the agricultural sector with potential for both financial returns and environmental impact. The platform’s regulated status and collateral-backed loans provide some protection, but the high default rates and payment delays represent serious risk factors that should not be underestimated.
We believe the platform is best suited for investors who:
- Understand agricultural sector dynamics and associated risks
- Have longer investment horizons and don’t require immediate liquidity
- Value environmental impact alongside financial returns
- Can afford to diversify across many loans to mitigate default risk
Platform Safety Analysis
Key Risk Factors
- High default rates (22-27.7%) affecting portfolio performance
- Agricultural sector vulnerabilities including weather conditions and commodity price fluctuations
- Relatively young platform with limited track record (since 2020)
- High loan-to-value ratios up to 70% on some investments
Regulatory Status
-
✓
Regulated by the Bank of Lithuania
-
✓
Obtained ECSP license in July 2023
-
✓
Operates under uniform EU framework
-
✓
Complies with AML and KYC requirements
Collateral Security
-
✓
All loans secured by tangible assets
-
✓
Collateral includes heavy machinery, farmland, and equipment
-
!
LTV ratios up to 70% on some loans
-
!
Agricultural asset liquidation can be challenging
Default Analysis
-
!
Official platform data: 13.9% loans >90 days overdue
-
!
Some reviews report 22-27.7% default rates
-
!
Polish market showing 42% loans >90 days late
-
✓
€3.76M recovered from defaulted loans to date
Company Background
HeavyFinance was founded in 2020 in Vilnius, Lithuania. The platform was established by an experienced team including Laimonas Noreika, Andrius Liukaitis, and Darius Verseckas. Notably, Noreika previously founded another successful P2P lending platform called Finbee.
The company has set an ambitious environmental goal of removing one gigaton of CO2 emissions by 2050 by supporting climate-friendly agricultural practices, highlighting its dual focus on financial returns and environmental impact.
HeavyFinance operates under a peer-to-business model, connecting investors with small and medium-sized farmers seeking funding for various agricultural projects. While relatively young compared to some established P2P platforms, it has secured proper regulatory approval and has been growing its investor base steadily.
Risk Assessment Summary
Platform-Specific Risks
- High Default Rates: The significant percentage of delayed and defaulted loans represents a major concern for investors, particularly in the Polish market.
- Collateral Liquidation Challenges: While all loans are secured by collateral, liquidating agricultural assets can be complex and time-consuming, potentially affecting recovery rates.
- Limited Track Record: With operations beginning in 2020, HeavyFinance has a relatively short history compared to more established platforms.
Sector-Specific Risks
- Weather Dependencies: Agricultural yields and profitability can be severely impacted by adverse weather conditions.
- Commodity Price Fluctuations: Changes in agricultural product prices can affect farmers’ ability to repay loans, as evidenced by the impact of the Ukraine war on grain prices.
- Seasonal Cash Flows: Agricultural businesses typically have uneven cash flow throughout the year, which can lead to temporary payment delays.
Mitigation Factors
- EU Regulation: HeavyFinance’s ECSP license provides a level of regulatory oversight that many alternative platforms lack.
- Asset-Backed Security: The physical collateral backing all loans provides a recovery mechanism in case of borrower default.
- Recovery Track Record: The platform has demonstrated some success in recovering defaulted loans, with 109.94% recovery rate on loans defaulted in H2 2021.
Platform Interface & Features
Dashboard Overview
Clean interface showing portfolio statistics and available investments
Auto-Invest Settings
Customizable investment criteria with detailed parameter options
Loan Details
Comprehensive information about borrower, collateral, and risk assessment
Secondary Market
Platform for buying and selling existing loan investments
Auto-Invest
-
✓
Customizable investment criteria
-
✓
Portfolio diversification settings
-
✓
Risk-based filtering options
Secondary Market
-
✓
Buy and sell existing investments
-
✓
1% fee on selling investments
-
✗
Limited liquidity for some loans
Risk Assessment
-
✓
Detailed borrower information
-
✓
Collateral documentation
-
✓
Risk rating system
Auto-Invest Functionality
HeavyFinance offers a robust auto-invest tool that allows investors to set specific criteria for automated investments. Key features include:
- Portfolio Size Limits: Set maximum investment amounts for your auto-invest portfolio.
- Investment Range: Define minimum and maximum investment per individual loan.
- Risk Filtering: Select acceptable risk ratings for automatic investments.
- Interest Rate Parameters: Set minimum interest rate requirements.
- Loan Term Preferences: Choose acceptable loan durations based on your investment timeline.
- Collateral Type Selection: Filter by different collateral types (machinery, land, etc.).
- LTV Ratio Limits: Set maximum acceptable loan-to-value ratios.
This functionality allows for hands-off investing while maintaining your preferred risk-reward balance. The system allocates funds as new loans matching your criteria become available on the platform.
Secondary Market Analysis
HeavyFinance’s secondary market provides a potential exit route for investors who need liquidity before loan maturity. Our analysis of this feature shows:
- Fee Structure: 1% fee charged on the selling party only, no fees for buyers.
- Liquidity Level: Moderate liquidity with varying demand based on loan characteristics.
- Popularity Factors: Loans with higher interest rates, strong collateral, and shorter remaining terms tend to sell faster.
- Discount Impact: Loans with payment delays typically require significant discounts to sell successfully.
While the secondary market provides a theoretical exit option, investors should be aware that agricultural loans—especially those with any payment history issues—may be difficult to sell without accepting substantial discounts. This market should be viewed as a contingency rather than a reliable liquidity source.
Final Verdict
Key Takeaways
- Attractive returns between 10-15% for agricultural loans
- Innovative green investment options with environmental impact
- EU-regulated platform with proper ECSP licensing
- Significant default rates (22-27.7%) represent major risk factor
- All loans secured by collateral, though liquidation may be challenging
Recommended For
- Investors seeking agricultural sector diversification
- Those interested in eco-friendly impact investments
- Investors with longer investment horizons (2+ years)
- Those who understand and can tolerate higher risk levels
- Investors who can properly diversify across many loans
Consider Alternatives If
- You require consistent, reliable monthly returns
- You prioritize capital security over high yield potential
- You need guaranteed liquidity or quick access to funds
- You’re investing a significant portion of your portfolio
- You’re unfamiliar with agricultural sector risks
Platform Assessment
Strengths
- Environmental Impact: HeavyFinance’s focus on sustainability and environmental impact through green loans is a distinctive feature that appeals to socially conscious investors.
- Regulatory Framework: The platform’s ECSP license provides a level of oversight and protection that many alternative lending platforms lack.
- Collateral Security: All loans are secured by tangible assets like machinery, farmland, or equipment, offering a recovery mechanism in case of default.
- Yield Potential: With returns of 10-15% (and sometimes higher), the platform offers attractive yields compared to many traditional investment options.
- Sector Diversification: HeavyFinance provides exposure to the agricultural sector, which may have different economic cycles than other investment types.
Weaknesses
- High Default Rates: The significant percentage of delayed and defaulted loans (up to 27.7% by some metrics) represents a major concern for consistent returns.
- Payment Delays: Many investors report significant payment delays affecting portfolio liquidity and actual yield.
- Sector Vulnerabilities: Agricultural investments are particularly vulnerable to external factors like weather conditions and commodity price fluctuations.
- Limited Track Record: With operations beginning in 2020, HeavyFinance has limited historical performance data to evaluate.
- Loan Extension Concerns: Some users report concerning practices regarding loan extensions and interest rate reductions.
Bottom Line
HeavyFinance offers a unique investment opportunity in agricultural P2P lending with attractive potential returns and a positive environmental impact. However, the high default rates and significant payment delays represent serious risk factors that investors should carefully consider. The platform is best suited for those with a higher risk tolerance, longer investment horizons, and an interest in agricultural sector exposure.
For most investors, HeavyFinance should represent only a small portion of a well-diversified investment portfolio, with careful attention paid to loan selection and collateral quality.
Ready to Invest in Agricultural Loans?
🌱 Start from just €10 with HeavyFinance
* Investment involves risk of capital loss. Past performance does not guarantee future returns. Always conduct your own due diligence before investing.
Listen to Our Heavyfinance Review
Listen to our audio summary of the Heavyfinance review while browsing or on the go. Duration: 1:43
Why listen? Get the key highlights of our in-depth Heavyfinance analysis including returns, risks, and who this platform is best suited for.
