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Heavy Finance Analysis

Rank #56
Agricultural Loans
Direct Marketplace Lending
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Last updated in June 2022.

What is Heavy Finance?

Heavy Finance was founded in 2020 in Lithuania but has offices in Portugal, Poland, Latvia, and Bulgaria. It focuses on the agricultural sector, offering loans to farmers to invest in land, machinery, or working capital. Heavy Finance has funded €21.43m worth of loans to date - see Heavy Finance statistics for more historical performance insights.

Key Takeaways

  • Funded by an owner of another successful marketplace lending platform; backed by international VC capital (€1.3m, seed round)
  • Agricultural loans to farmers in 5 EU countries, usually backed by asset collateral
  • Close to 12% average interest rate; approx. 8% default rate; historical average returns undisclosed

Who is Behind Heavy Finance?

Laimonas Noreika founded Heavy Finance after founding (in 2016), running, and successfully exiting (in 2020) FinBee - a personal lending platform based in Lithuania. He remains Heavy Finance’s CEO. Andrius Liukaitis and Darius Verseckas are co-founders and hold the roles of CFO and CMO, respectively. 

Heavy Finance has run two VC funding rounds (pre-seed and seed), raising a total of €1.3 million. The main backers are Estonia-based start-up accelerator Startup Wise Guys and a Polish VC fund Black Pearls VC.

An audited financial report is accessible, but one needs to submit personal and contact details to receive it via e-mail. It’s also only available for the year 2020. According to this report, Heavy Finance ended 2020 with a loss of approx. €175,000.

Heavy Finance's Investment Product

Heavy Finance offers agricultural loans to European farmers. Loan amounts can range from €7,000 to €300,000, and maturities don’t exceed four years. Investments come from five EU countries (Lithuania, Latvia, Poland, Portugal, and Bulgaria). Most deals are secured with collateral such as heavy equipment and machinery, arable land, an agreement of sale, or subsidies, although some are only backed with personal guarantees. Heavy Finance rates each project from A+ (safest) to C (highest interest rate).

Investors can buy and sell investments on a secondary market, but no auto-invest option is available. You can conveniently browse all live Heavy Finance projects directly at P2PMarketData.

How Much Can You Earn?

At P2PMarketData, based on API integration of all live and historical Heavy Finance loans, we have calculated the average nominal interest rate at 11.84%. Heavy Finance doesn’t publish or advertise the real ROI, net of all extra costs and bonuses. According to their statistics page, the share of loans delayed by over 90 days was roughly 8% in 2021 (ranging from 4% for A-rated to 16% for C-rated loans).

The referral bonus can increase the initial returns by an extra 2%. On the other hand, investors incur a 1% fee on secondary market sales. Heavy Finance also charges several borrower fees, including a 1-8% operator’s fee. For the whole fee structure, see the fee list.

Other Considerations

HeavyFinance was named Fintech Company of the Year in the Lithuanian Fintech Awards 2022.