If you sign up on Debitum with the link below, you will get a 1% investment bonus on your invested amount during the first 60 days after your registration. The owners are ZIdea (60.7%), Amplo (30.3%) and SIA WIN WIN INVESTMENTS (9%). Investors should be aware of the risks involved when investing on Debitum. The applied tax rate is based on the country of tax residency and the tax information that are submitted. There is an exception with the Ukrainian lender Chain Finance though, where the repayment could not be met due to the war in Ukraine. Following a token sale, which raised the equivalent of around EUR 6 million, the P2P platform was set up.
The pool of loans (ABS) on Debitum always has the same characteristics. It could be just loans categorized as factoring, trade finance, business loans or car leasing. While the category is identical, there can be differences in maturity and nominal values (loan amount).
The platform does an excellent job of monitoring the performance of its lending companies. We’re not sure under which circumstances a user would cause loss to the platform, to other users and to originators. According to the Latvian business registry, Factris and Inntec are located at the same address and neither have any secured debt. While this is all promising, there are downsides to investing in this platform.
These criteria include the maximum portfolio size, the interest rate, the loan term and the selection of individual lenders. These criteria include the maximum portfolio size, the interest rate, the loan term or the selection of individual lenders. Alternative financing can be seen as way to help smaller debitum token venture s grow until they become “bankable”; to tick all the boxes required for modern day banking powerhouses to issue a loan. Debitum is a P2P marketplace or, better P2B (peer-to-business) marketplace, which means that the platform offers financial instruments (pool of loans) from various lenders.
- If you want more information about each loan originator, just head to the loan originator section at the footer of the platform and select the company you’re interested in.
- According to a review by the World Bank, although SMEs’ more than 2/3rds of SMEs do not have access to credit.
- With Noone Wallet receiving and sending cryptocurrency is fast and simple.
- All ABS on Debitum Network are secured by a 90-day buyback guarantee.
- Often you’ll need to deposit and invest a certain amount of money to claim your bonus, which is also the case with Debitum Network.
The local regulation introduced new rules for P2P lending marketplaces which meant that those companies now have to switch to a different investment structure that offers investments in financial instruments. Apart from the fact that the platform is now “regulated” in Latvia, there is no significant increase in safety. Investors are still exposed to default risks due to non-performing assets. Debitum Network has also launched a functional MVP which is an alpha solution for a secondary market for the product.
Exchange Debitum to other tokens or coins
If you want more information about each loan originator, just head to the loan originator section at the footer of the platform and select the company you’re interested in. On the positive side, one can point out that the platform is now regulated and therefore has to meet a higher standard of compliance and transparency. The founders at the time included Martins Liberts, Donatas Juodelis and Justas Šaltinis. Further analyses of other platforms can be found on my P2P Platform Review page. By following these measures, you can enhance the security of your Debitum and protect them from unauthorized access or loss. With Noone Wallet receiving and sending cryptocurrency is fast and simple.
The platform is regulated by the Latvian regulators, which increases the trust in the platform’s services. Instead, you can only withdraw your money from the platform if you’re at the end of the loan term, you receive early repayment, or if the buyback guarantee kicks in. Debitum Network clearly explains that users’ funds are saved on segregated bank accounts. In case the platform goes out of business, you should be able to access their funds as they aren’t connected to the company.
Is there a sign-up bonus for new investors?
Debitum Network usually lists loans with an interest of 8-12%, and a loan term of up to two years, and as we conduct this review. Keep in mind that the loan availability can fluctuate and that there is no secondary market. Working with loan originators will bring additional risks to your investments which are hard to evaluate from your perspective.
Your investments will be shown under “My Investment” view in your dashboard. To invest in asset-backed securities on Debitum, you must invest manually. Due to the change in investment structure, the platform’s Auto Invest is currently inactive.
DEB-USD Debitum Token USDCoin Price & Overview
When evaluating P2P lending platforms, we always look at the securities the borrowers, loan originators, and the platform itself provides. At Debitum, revenue is generated exclusively through commission income from the lenders who offer their loans for financing on the marketplace. Due to regulatory problems, DEBIFO had difficulties expanding its lending operations in other EU countries at the time. This problem initiated the idea of setting up a marketplace for similar lenders where they could offer their loans for financing.
Investing on Debitum
You can find your Debitum wallet address within the app, in the “Receive” section. To create a Debitum wallet, simply download the Noone wallet app from App Store or Google Play, follow the setup instructions, and choose to create a new Debitum wallet. Our exchanges with float and fixed rates are a guarantee of receiving the exact amount of cryptocurrency without hidden fees. This transformation of the banking system forced many SME’s to go out of business, and still to this day, it’s harder than ever for smaller companies to get the financial help required to enable growth. The system encourages each user, as well as the whole group, to participate in the ecosystem and gain more trust, by rating their actions. Each transaction and service performed will either earn the community a rating, or lose them a rating.
For this reason, Debitum Network functions using both crypto and fiat. The network will include fiat facilitators, a role designated to take care of all fiat transactions and make necessary records on the blockchain using smart contracts. For now, Debitum Network will use crypto currency only for other financing cycle related fees and guarantee-like token freezes.
However, certain issues of the platform should also be taken into account. These include a questionable restructuring of Ukraine assets, conflicts of interest between lenders (Sandbox Funding) and shareholders (Henrijs Jansons), as well as a level of transparency https://cryptolisting.org/ that could be improved. When paying taxes in your county of residence, the withheld taxes can usually be deducted from the overall balance. This means that the effective taxation rate will be the same as it has been before when investing into claim rights.
Accordingly, the lender, which resumed new lending activities at the beginning of 2023, could service all claims. These are financial instruments that are composed of a bundle of different loans. The focus of Debitum is on business loans, which are offered by international lenders. Debitum has been a regulated P2P platform, controlled by the Latvian financial regulator FCMC since 2021. Since this change happened, investors no longer invest in claim rights, but in asset-backed-securities (“notes”).
An asset-backed security (ABS) is a financial instrument backed by a pool of loans. Debitum created the ABS to ensure investors a fixed-term, fixed-income instrument. It’s worth noting that all ABS come with a buyback guarantee, as it was the case in the past with investments in loans. You can invest in business loans backed by a personal guarantee, collateral, or a buyback guarantee. Since 2018 more than 3,267 active investors earned over €977,000 by investing on Debitum Network. Small and medium-sized businesses seek funding from loan originators, also known as brokers that sell these issued loans in a bundle on Debitum.