InSoil AI Overview on 09/2025

InSoil Finance Overview

🌱 InSoil Finance (formerly HeavyFinance) is a Lithuanian-origin crowdfunding platform for secured agricultural loans. It connects EU farmers with retail investors who fund projects (min €100 each) in exchange for fixed interest. The company is licensed by the Bank of Lithuania (Crowdfunding SP license from July 2023) and holds a European Crowdfunding Service Provider (ESMA ECSP) license (granted July 2023). By mid-2025 it has financed roughly €85–89 million across Europe with 15,000+ registered investors. Its key advantages are high yields (avg ~12–14% interest) and ESG impact (soil health/carbon credits), but major risks include relatively high default/delay rates (~9–12% of principa), loan illiquidity (bullet repayment), and no capital guarantee. 📈💡

InSoil Finance Products & Terms

• Loan type: All offerings are secured agricultural loans (no equity/bonds). Loans are backed by first-lien collateral on farmland (LTV ≤90%) or heavy equipment (≤70%).

• Maturity: Terms range up to ~4 years (11–48 months). Repayment is typically bullet-style (monthly interest, principal at term-end).

• Returns: Interest rates currently span 11.6–22.3% (gross) (weighted avg ~13%). In addition, special “Green Loans” share farm-generated carbon credit revenues instead of fixed interest.

• Investment size: Loans to farmers run €5K–150K, while investors can fund from €100 each.

• Key risks: Historically ~9–11% of principal has defaulted. Liquidity is limited – exit requires using the 1% secondary-market fee. There is no buyback or guarantee on loans, so full loss is possible. ⚠️

InSoil Finance Company

• Founders: Founded June 2020 by fintech veterans Laimonas Noreika (CEO, ex-FinBee CEO, ~42.5% owner) and co-founders Darius Verseckas (CMO) and Andrius Liukaitis (CFO) Noreika leads with extensive P2P experience (FinBee).

• Ownership: The UAB Heavy Finance ownership is split among 8 shareholders. Aside from Noreika’s ~42.5%, Practica Capital VC holds 17.3%; others (e.g. Magnum Iter 6.1%) each hold <10%. Notable backers include Startup Wise Guys, Black Pearls VC, and business angel Mantas Mikuckas (Vinted co-founder, €1M investment).

• Legal Structure: InSoil operates under UAB Heavy Finance (Reg. code 305576227, Vilnius) with no listed subsidiaries.

• Regulation: The platform is regulated as a Crowdfunding Service Provider. Bank of Lithuania granted Heavy Finance a license on 14-Jul-2023; it also complies with the EU ECSP (ESMA) framework. Supervision is by the BoL and ESMA under EU rules.

InSoil Volumes & Results

• Total funded: InSoil has issued about €88.8M in loans overall (by 2025) (≈€84.7M by July 2025). About €41.95M of principal has been repaid so far.

• Active investors: ~15,300 individuals (and 231 legal entities) are registered.

• Issued loans: Over 1,700 projects funded to date (e.g. 51 new loans in July 2025, 62 in April 2025). Outstanding principal is ~€46.17M, with ~€7.91M (8.98%) in default.

• Delays/Default: Only ~79–80% of loans are current/on-time. In July 2025, €9.90M (11.6%) was >90 days overdue; April 2025 saw 12.8% >90d. P2PMarketData reports ~9.91% default of principal(2025 data).

• Investor returns: The weighted-average interest paid is ~13%. Historical interest disbursed totals ~€11.0M(on €41.95M repaid), implying high yields. Promotional caps have been ~22%; in practice diversified portfolios have averaged ~10–13% net.

InSoil Risk Management

• Selection: InSoil underwrites each loan with thorough due diligence. Borrowers must provide financials and first-lien collateral; the platform assigns an internal credit score and risk rating (A+ through C) for each project. Crops and regions are evaluated for viability. Green Loans undergo additional carbon-credit evaluation.

• Filters: Only agricultural projects are accepted, mainly in Poland, Portugal, Lithuania, Latvia, and Bulgaria. Loans typically finance livestock, machinery, seeds, or land purchases. High-risk sectors are largely avoided.

• Collateral/LTV: InSoil requires substantial collateral: up to 90% LTV on land and 70% on machinery. Borrowers usually provide personal/company guarantees as well.

• Monitoring: Loan performance is tracked in real time. The platform regularly publishes repayment statistics by risk group. Investors can view detailed project histories and payment schedules online. Delinquencies are pursued: In late 2024 one major loan was seized via legal enforcement.

• Risk Mitigation: InSoil even secured a €10.5M guarantee from the European Investment Fund (Oct 2024) to cover potential losses. Funds are held in escrow at BNP Paribas for security. Overall, risk is managed via collateral and diversification, but investors are warned of possible losses.

InSoil Platform Functionality

• Auto-Invest & Secondary Market: InSoil provides an Auto-Invest tool that allocates new funds across chosen loan types. There is also a live secondary market (transfer fee ~1%) to trade existing loans.

• Dashboard & Reporting: Investors get a personal dashboard showing portfolio breakdown and upcoming payments. The platform publishes monthly Portfolio Performance Reviews and live statistics (on-time rates, default rates).

• Data & Analysis: Each loan listing includes rich data (project description, financials, credit score, collateral details). Investors can run these through their own models. There are no “expert” paid analyses or outside ratings beyond the platform’s own A+/…/C scheme.

• Security Features: User funds are segregated in Lemonway/BNP bank accounts. The site uses SMS 2FA (no mobile app; it works in mobile browser). No insurance or buyback mechanism is offered, so funds remain at risk.

• Languages/Currency: Interface available in English and Lithuanian; all transactions are in EUR.

InSoil Finance Pricing & Fees

• Investor fees: None for account use or investing. Investors incur only a secondary-market fee (1%) on transfers and any late-payment admin fee (0.1%/day on overdue amounts, which is charged to the borrower) There are no withdrawal or performance fees.

• Borrower fees: Project owners pay an origination (“operators”) fee of typically 1–8% of the financed amount. Additional fees may include administration/early-exit penalties (e.g. 5% of remaining loan).

• Transparency: All fees are clearly disclosed in the platform’s terms and FAQs. InSoil has also offered referral bonuses (e.g. 2% cash-back) to attract users, fully explained on its site.

Negative Publicity about InSoil Finance

🔴 We found no regulatory sanctions or litigation against InSoil. The platform’s transparency on issues is high, but certain performance metrics are concerning. InSoil’s default/delay rates are notably high: analyses cite ~11% of principal defaulted and up to 24% of loans experiencing delays. Recent reports show about 12–13% of issued funds >90 days overdue. A few loans had to be legally enforced or written off (debt collected via asset seizure). Some user complaints note no mobile app and occasional SMS login issues. Importantly, InSoil explicitly disclaims any guarantee on investor capital. Aside from these expected credit risks, we found no major controversies or warnings. 🚩

InSoil Finance Success Stories

• €100M Key Carbon Deal (Jun 2025): InSoil (Heavy Finance) signed a landmark 100 million EUR agreement with Canadian climate investor Key Carbon to fund green farm loans.

• EU Backing: InOct 2024, the European Investment Fund provided a €10.5 million guarantee for InSoil loans, reducing investor risk. Earlier, InSoil raised a €50 million growth fund (Jan 2024) to expand EU farm lending.

• Awards & Recognition: InSoil was voted Lithuania’s Fintech Company of the Year 2022. Founder Laimonas Noreika is a member of the Forbes Fintech Council. Co-founder Mantas Mikuckas’s €1M investment (2024) underscores market confidence.

• Financial Milestones: The company turned profitable in FY2023 (net +€375k vs –€1.1m in FY2022) and grew equity to €1.7m. To date InSoil has enabled over 60 million tonnes of CO₂ offset capacity. Over 84.7M has been funded (Jul 2025) and >15k investors joined, marking strong growth and impact. 🌟

Is the InSoil safe and regulated?

Insoil Finance operates under the EU Crowdfunding Service Provider regime and is supervised by the Bank of Lithuania. Regulation improves transparency and disclosures, but investments are not covered by any deposit guarantee and your capital is at risk.

What returns can I expect on InSoil?

Published offers typically target double digit gross interest, with many loans in the range of about 11 to 14 percent and some campaigns higher. Actual returns depend on borrower performance, delays, recoveries, and your diversification. Returns are not guaranteed.

What are the main risks on InSoil?

Key risks include borrower default that can lead to partial or total loss, illiquidity if the secondary market is thin, collateral value shortfalls during recovery, and platform or operational risk. Concentration in agriculture also exposes you to weather and commodity price shocks, so diversify widely and size positions prudently.