Debitum review
8
(our review)
Debitum is an investment platform focused on business loans. In our review, it scores 8 out of 10. Our editorial team has used its Auto Invest function for several years, achieving an average return of 11.3 percent. We tested the registration process, mobile site and investment options, and compared Debitum with other major p2p platforms.
Contents:
Note: online investments through Debitum carry risks; you may lose (a part of) your deposit.
What is Debitum Investments?
Debitum Investments was founded in 2018 as a peer-to-business (p2b) platform and focuses on financing business loans. It works with financial partners. Debitum has financed loans in multiple European countries, with a focus on the Baltic States and Eastern Europe.
The platform is attracting many international investors. Investors on Debitum achieve average returns up to 11 percent or more, depending on the risk profile of the loans.
For this review, we created an account on a laptop and also tested the mobile site. Both versions were in English. However, it is also available in German, French, and Spanish.
Debitum is most often compared to peer-to-peer platforms such as Mintos, PeerBerry, and Bondora.
Creating an account
Setting up an account on Debitum is simple. With just an email address and password, you can create an account, though you must verify it before transferring funds. Verification requires a camera (from your mobile phone), a valid ID, and proof of address.
After entering your email address and a password, you need to provide your name, date of birth, and address details. The verification process then begins.
By scanning a QR code, you can complete this process via your mobile phone. For us, (we are Dutch) this was only available in English. You scan your ID and take a photo of your face. Once these are verified, you must complete two questionnaires.
Mandatory questions about your knowledge or situation
Before transferring funds, you need to complete two questionnaires. The first one focuses on you personally (KYC) and includes questions about your income or the origin of your funds. The second questionnaire addresses European regulations. Platforms must assess investors’ experience, investment goals, and financial situation.
Some questions in Debitum’s knowledge test were quite challenging. Based on your answers, Debitum evaluates your knowledge and ability to handle potential losses. The goal is to determine whether the platform suits you and whether you are aware of the risks. Once approved, you can transfer funds to the platform and start investing.
Transferring funds: good payment options
The platform is user-friendly. Debitum offers several ways to transfer funds initially. You can use online banking to transfer money directly. Other options include credit card, Apple Pay, and Google Pay. All these methods allow for instant deposits, though they come with fees: credit card, Apple Pay, and Google Pay incur a 1 percent fee.
These payment methods work well if you want to try the platform. However, a 1 percent fee becomes expensive when you deposit larger amounts. To avoid this fee, you can use a regular bank transfer. In our experience, these transfers were also processed within a few minutes.
Usability of the auto invest function
Once your funds are in your online account on Debitum, you can start investing. This is simple, both on mobile and via the online dashboard. We are particularly impressed by the auto invest function. You can set preferences for interest rates, loan durations, or amounts per investment. It also allows you to skip manually selected loans.
The platform distributes your funds across loans that match your criteria. With a low minimum investment amount (10 euros), it is easy to spread your funds across multiple loans. This reduces risks, and by setting a minimum interest rate or maximum loan duration, you can quickly create a portfolio of loans. For example, our first 100 euros were spread across 8 loans, each with an investment of 12.50 euros, on the same day.
Manual investing
Like other p2p platforms, most investors on Debitum use automated investing. On many platforms, this leads to loans being funded quickly, leaving fewer options for manual investors. However, this seems less of an issue on Debitum.
We still recommend using the auto invest function. Information about loans is limited, and you may invest in distant countries. This can make it difficult to assess risks properly. Diversification is often a good way to mitigate risks, and the auto invest function is an ideal solution for this.
Customer service in English
Debitum offers customer service by phone, online chat, Telegram, or email. Like many international platforms, Debitum provides customer service in English. It is available during business hours (8:00 to 16:00 CET, Monday to Friday).
It also has an online help center and a YouTube channel with informative videos about the platform and investment strategies. For this review, we asked questions in English via chat and email. The platform responded quickly during business hours. Questions sent after hours were answered the next business day.
Offerings
Debitum has built a substantial selection of investments, with different countries and loan terms available. The volume is generally good, although the selection can be less diverse at times.
The Auto Invest function lets you choose between asset-backed securities (ABS) and notes. Collateral can offer additional protection, but it does not make an investment safe by itself. The risks depend on the financial partners and the underlying loans.
Loans from partners
It is important to note that Debitum does not issue loans itself but collaborates with a few major financial service providers (loan originators). These financial partners are often professional organizations operating under local licenses.
Some of Debitum’s partners are:
- Sandbox Funding finances SMEs in Latvia, with receivables, business assets or real estate as collateral.
- Triple Dragon is a UK-based partner that finances video game and mobile app companies.
- Bono House finances the construction and development of environmentally friendly housing projects.
- Foresto is a Latvian partner that finances the acquisition and consolidation of forest land.
- JSC Juno finances businesses in Latvia’s forestry and agriculture sectors.
- Baltic Terra is an investment fund focused on agricultural land in Latvia.
You can select or exclude individual partners. We have not excluded any and have achieved an average return of 11.3 percent. Auto Invest spreads our money across available investments, sometimes investing just a few tens of euros at a time.
Debitum Flow: flexible withdrawals at 8 percent
Debitum Flow allows you to withdraw your money during the term without paying an exit fee. You earn 8 percent interest per year, with daily interest payments. Withdrawals of up to 1,000 euros usually reach your account on the next business day. You can withdraw up to 5,000 euros per week, provided sufficient liquidity is available.
Like Bondora Go & Grow and Monefit SmartSaver, Debitum Flow uses a liquidity reserve. Unexpected events, such as an unusually high number of withdrawals within a short period, may lead to a withdrawal queue.
Returns
Our editorial team has been investing through Debitum’s Auto Invest function for several years. Despite the large number of investments, we currently have no overdue payments and have achieved an average return of 11.3 percent. Online reviews report returns of between 9 and 11 percent for many other investors.
Debitum’s loyalty program offers up to 2 percentage points of extra annual interest, depending on your tier.
You can move up by increasing your invested amount or referring friends who meet the requirements.
The interest bonus applies to new eligible investments after reaching a tier, but not to Debitum Flow.
Reliability and risks
Debitum obtained an investment brokerage licence in September 2021. It is supervised by Latvijas Banka, Latvia’s central bank, and operates under MiFID II. Eligible investors may receive compensation of up to 20,000 euros if Debitum cannot return money or financial instruments it holds on their behalf.
This scheme does not cover losses caused by borrowers or loan originators failing to repay. Regulation adds oversight and investor protection, but you can still lose part or all of your investment.
Buyback obligations
Debitum investments include buyback or redemption obligations, depending on the partner and investment terms. These obligations require the partner or issuer to repay an investment in specific circumstances. Their value depends on that party’s ability to meet its obligations.
Asset-backed securities
Debitum also offers ABS (asset-backed securities) investments. Here, you invest in a pool of multiple loans backed by collateral. The returns depend on the collective performance of all loans in the pool.
Review score: 8
In our latest review, we rate Debitum 8 out of 10. It is one of the platforms that we at Investment Platforms.eu actively use. If you are looking for high returns without the price fluctuations of stocks or options, Debitum can be an attractive option. In our experience, Debitum has provided relatively steady returns.
Compared with many other p2p platforms, Debitum operates under a stronger regulatory framework. Some of our investments have experienced payment delays, but these were resolved quickly. We have not experienced any defaults and have achieved an average return of 11.3 percent using Auto Invest.
The downsides of Debitum are similar to those of other p2p platforms. You cannot always access your funds immediately, and there is no secondary market. Debitum Flow may suit investors who want more flexible access to their money, although withdrawals depend on available liquidity. You also rely on the partners’ credit assessments, and payments may be delayed or borrowers may fail to repay.
Disclaimers
Investing involves risks. You may lose part or all of your investment. This review was written by the editorial team of Investmentplatforms.EU and is based on our own experience and assessment. We earn revenue from advertising and payments from providers. You can read more about our approach on our about us page.
