Debitum Network Review

Description

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.

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Rating

⭑⭑⭑ ⭒ ⭒

3.5

based on 5 ratings

Key Facts

Investment Structures	Marketplace (peer-to-business)
Originator Types	Loan Originators
Investing Into	Business Loans
HQ Country	Latvia

Investments

Interest Rates	7.00% – 11.00%
Number of Originators	9
Number of Countries	5
Currencies	EUR
Minimum Investment	50 EUR

Statistics

Average Net Return	8.60%
Total Loans Funded	10,048,441 EUR
Loans Outstanding	1,780,036 EUR
Loans Current	n/a
Loans Late	n/a
Loans 1 To 15 Days Late	n/a
Loans 16 To 30 Days Late	n/a
Loans 31 To 60 Days Late	n/a
Loans 60 Plus Days Late	n/a
Loans Defaulted (In Recovery)	n/a
Loans Defaulted (Recovered)	n/a
Loans Defaulted (Written Off)	n/a
Investors	6,579
Average Amount Per Investor	n/a
Principal Returned	n/a
Interest Earned	n/a
Late Fees Earned	n/a

Features

Auto-Invest	Available
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	Available as: Assets

Secondary Market	Not available
Instant Cash-Out	Not available

Risk & Security

Buyback Guarantee	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	Not available

Rating System	Available as: Credit score, Risk score
Risk scoring ranges from A+ (best) to F (worst).
Due Diligence	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	Available

Collaterals	Personal Guarantee, Business Guarantee, Promissory Note, Inventory, Company Stocks
Maximum Loan To Value (LTV)	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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