HeavyFinance opened a completely new asset class for retail investors – loans backed by heavy machinery. This is the first crowdlending platform in the world focusing on heavy equipment as collateral to make investments more secure.
HeavyFinance was founded in 2020 by four experts in different fields such as heavy machinery, finance, marketing and project management. Two of the co-founders are serial entrepreneurs who established successful companies like Finbee, Nova rent and Litrental.
HeavyFinance is supervised by The Central Bank of Lithuania under the track of crowdfunding platform operators. The Central Bank of Lithuania is one of the leading central banks in the world taking active monitoring and regulating efforts as well as fostering innovations in the financial sector.
Investing on HeavyFinance is available to anybody over 18 years old, while the company has some geographical restriction for borrowers. HeavyFinance is focusing on issuing loans to entities based and operating in European Union with primary focus on Lithuania, Latvia, Portugal and Bulgaria.
Loan period usually varies from four months to three years. However, if you want to sell the part of your investment portfolio earlier, you can do it on the secondary market.
How is the risk measured?
First of all, people can choose to invest in loans depending on the risk they are willing to take. Risk levels are indicated by letters A (lower risk), B (medium risk) and C (higher risk). Consequently, while you could earn up to 14% interest rate by investing in C risk level loan, A risk level loan would bring you around 10-12% interest rate depending on the amount you’ll invest.
Talking about the risk assessment in more detail, these are the main criterias HeavyFinance looks at:
● Financial statement for past 2 years;
● Balance sheet;
● Cash flow statement;
● Reputation of business owner;
● Loan-to-value ratio;
As of today, the platform already helped people to invest more than €1M in loans backed by heavy equipment and arable land with 12,14% average return on investment. Furthermore, the platform didn’t have any defaults so far.
Don’t forget: if you register through this link you get 2% investment bonus as long as the investment is active with HeavyFinance for a 30 day period from the investment date.
For other bonuses visit our Cash-back & Bonuses page.