Debitum Network is a p2p lending platform from Latvia that focues on small and medium enterprises (SME). The platform was founded in 2018. Loan types available are invoice financing, business loans, trade financing and promissory note. The user experience of the platform is outstanding. In general, the technology deployed is innovative and worth a look: decentralized access to the marketplace through the use of blockchain technology, investments can be automatized through an API. Debitum has launched their own DEB token. However, this endeavor so far has been criticized for not providing the returns to investors being promised.
Investors can configure their own auto-invest portfolio. The platform provides the following strategies as an example: Conservative (average interest rate: 8.88%, risk scores A+ to A-), moderate (average interest rate: 8.15%, risk scores B+ to B-) and aggressive (average interest rate: 8.45%, risk scores C+ to E-).
Manual-Invest
Debitum Network
Available as:
Assets
Instant Cash-Out
Debitum Network
Not available
Secondary Market
Debitum Network
Not available
Risk & Security
Buyback Guarantee
Debitum Network
Available
According to debitum terms, if a loan comes with buyback guarantee that means: after 90 days of deferred payment, the loan originator buys back the claim you as the investor has with the borrower. Additionally, penalties will be applied if the borrower does not pay back after 15 days of a due date.
Payment Guarantee
Debitum Network
Not available
Rating System
Debitum Network
Available as:
Credit score, Risk score
Risk scoring ranges from A+ (best) to F (worst).
Due Diligence
Debitum Network
Available
Debitum checks every loan originator upon onboarding and after that every quarter. The loan originator must provide the cash flow data off all loans. That includes interest rates, term, payment schedule, commissions and others. The loans data is analyzed along with the overall loan originator's financial data for the last three years. Debitum then evaluates whether there are no collection issues that would be reflected on the loan book, investigates extraordinary loans, measures the stability of the portfolio, and performs stress tests on the financials of the loan originator. Finally, debitum follows up questions with the loan originator. The loan originator ultimately must be capabable to uphold the buyback guarantees towards the investors.
Skin in the Game
Debitum Network
Available
Collaterals
Debitum Network
Personal Guarantee, Business Guarantee, Promissory Note, Inventory, Company Stocks
Maximum Loan To Value (LTV)
Debitum Network
n/a
Sign Up Bonus
A bonus of 20 EUR will apply if you deposit and invest at least 1000 EUR in asset-backed securities with a term of at least 90 days. This has to happen in the first 60 days from registration. All commissions are paid on a monthly basis.
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