Introduction
Debitum Investments is a platform specializing in financing business loans. Since its launch in 2019, it has facilitated over €100 million in loans, providing investors with a unique opportunity to invest in asset-backed securities. The platform has attracted more than 13,500 registered investors and has doubled its Assets Under Management (AUM) over the past 12 months.
Debitum Investments Rating: 5/5
Key Information at a Glance
12-14% annually
€10
Yes, as investment brokerage firm
€0
Yes
Detailed Review
How It Works
Debitum allows investors to start with as little as €10 and invest in pools of business loans. These loans are grouped into asset-backed securities (ABS), which yield a fixed interest income. The business loans are secured by collateral such as stock, guarantees, property, inventory, invoices, or promissory notes.
Loan originators, or brokers, submit loans to Debitum for review. The platform's team of financial analysts evaluates and approves these loans based on their credit scores. Most investments come with a buyback obligation, requiring the loan originator to repurchase the loan and cover any outstanding interest if the loan becomes overdue beyond an agreed number of days, typically 90 days.
Returns & Fees
- Interest Rates: 12% to 14%
- Average Return Since Launch: 13%
Debitum does not charge direct fees to investors. Instead, it earns revenue by charging loan originators a fixed fee of 1%-3% on the facilitated investments. Investors may also earn penalty fees if a loan exceeds the grace period and is repaid. However, penalty fees are not awarded if the loan originator buys back the asset following the buyback obligation.
Platform Features
Debitum offers the Auto Invest feature, allowing investors to automate their investments based on their preferences. Interest payments are made on a daily or monthly basis, depending on the specific asset. Most of the securities are short-term, with expected principal repayment in less than a year.
Performance and Statistics
Debitum boasts a 0% default rate on its asset-backed securities. The platform has an average return of 13.06% since its launch, with over 280 ABS investments and more than 9,000 business loans facilitated. Detailed statistics and performance data are available on their website.
Regulation and Security
Debitum operates under a license from the Bank of Latvia, ensuring compliance with stringent financial regulations and enhancing investor confidence. It offers protection for uninvested funds up to €20,000 through the Investor Compensation Scheme in case of insolvency. The platform ensures all investments are backed by collateral, providing an additional layer of security for investors.
Debitum's ProtectionPlus system enhances investment security by thoroughly evaluating loan originators and implementing strict monitoring procedures. This includes verifying the originators' financial health, creditworthiness, and the quality of their loan portfolios. Additionally, the platform employs robust risk management practices to protect investor funds.
Special Considerations
Debitum published its annual report for 2023, audited by Grant Thornton. The report shows a significant increase in income, rising from €184,544 in 2022 to €348,174 in 2023, indicating strong growth in business operations and investor engagement. The platform maintains an extremely low redemption rate and has reported 0% defaults, highlighting the effectiveness of its risk management and loan origination processes. Debitum users earned €772,000 in profits in 2023, bringing the cumulative profit to €2.141 million. This underscores the platform’s ability to generate substantial returns for its users.
Management and Team
- Founder: Ingus Salmins
- CEO: Eriks Rengitis
- COO: Anatoly Putna
The Debitum management team comprises experienced professionals in the financial industry. The platform is operated by SIA DN Operator, a regulated company.
Conclusion
Debitum Investments is an excellent choice for investors seeking to invest in European business loans with strong returns and robust regulatory backing. The platform’s emphasis on asset-backed securities and its rigorous evaluation process make it a dependable option.