Debitum Review

Debitum is a regulated peer-to-business (P2B) lending platform that connects investors with small and medium-sized enterprises (SMEs) seeking capital. Here’s how it works:

• Investors purchase Asset-Backed Securities (ABS) derived from pools of business loans
• All loans are secured with tangible collateral for investor protection
• Returns range from 9% to 16.5% annually depending on risk level
• The platform operates under FCMC regulation with up to €20,000 investor protection
• Most loans carry a 90-day buyback guarantee with 15% penalty for late payments

Note that unlike many P2P platforms, Debitum focuses exclusively on business loans rather than consumer credit.

Debitum offers several layers of investor protection:

• Regulatory Oversight: Licensed by the Financial and Capital Market Commission (FCMC) of Latvia under MiFID II regulations
• Investor Compensation: Protection scheme that covers up to €20,000 per investor in case of platform insolvency
• Collateral Backing: All loans are secured with tangible assets such as real estate, equipment, or invoices
• Buyback Guarantee: 90-day buyback guarantee with 15% penalty on late repayments
• Track Record: No investor capital losses since inception (though 1.77% of assets are restructured due to Ukraine conflict)

While these protections are robust, all investments carry risk. The absence of a secondary market means investments are locked until maturity.

Debitum’s buyback guarantee works as follows:

• If a loan is more than 90 days late, the loan originator automatically repurchases it
• Investors receive 100% of their principal investment back
• Accrued interest up to the 90-day mark is also paid
• Additionally, a 15% penalty is imposed on loan originators for late payments, creating a strong incentive for timely performance
• The process is automatic and requires no action from investors

Note that the buyback guarantee depends on the loan originator’s financial capability. While Debitum carefully vets its loan originators, this represents a counterparty risk.

Getting started with Debitum involves these steps:

1. Registration: Create an account with your email address and set a password
2. Verification: Complete the KYC process by providing ID documents and proof of address
3. Funding: Transfer funds to your account via bank transfer (minimum €10)
4. Investment: Either set up auto-invest or manually select loans to invest in

The verification process typically takes 24-48 hours, depending on document quality and volume. Once verified, you can begin investing immediately after your funds arrive.

Note that due to regulatory requirements, all bank transfers must come from an account in your name, and you may need to periodically re-verify your identity.

Debitum has demonstrated consistent performance since its inception:

• Average historical XIRR (Internal Rate of Return) of 11.44%
• 98.23% of all investments are either repaid or on track for repayment
• Only 1.77% of assets have required restructuring (related to Ukraine conflict)
• No investor capital losses reported over the platform’s operating history
• Buyback guarantee has been successfully activated in cases of late payments

While past performance is not a guarantee of future results, the platform’s track record has remained stable through challenging economic conditions and geopolitical events.