Interested in learning more about Debitum Network and P2P lending? Want to find out if the Debitum P2P lending platform is right for you? In our Debitum Network review, we’ll take you through all the basics. We’ll talk about its returns, loan diversification, features, user interfaces, pros and cons, and more. Read on and get more details now.
What is Debitum Network? Understanding the basics
Debitum Network is a P2P lending platform based in Latvia. It was first founded in 2017, making it relatively new in the world of P2P lending. It’s open to global investors, so you can invest from anywhere in the world.
Mostly, this platform focuses on lending to businesses in the form of both business loans and receivables. Since it was first founded, Debitum Network has brought in more than €5,970,000 in loans. It has also attracted a total of more than 2,269 investors. So while it may be new, it is growing quickly in popularity. It has already attracted quite a few qualified investors.
Returns on investment at Debitum Network – Earn 10-15%
When it comes to return on investment, Debitum Network provides pretty solid returns. You can earn between 10-15%. The average annual return hovers around 9.82%, according to the Debitum Network platform.
Naturally, these relatively high rates mean that you will be taking on some risk. However, the business loans and receivables loans at Debitum Network are secured by a buyback guarantee. We’ll discuss that more in a later section.
There are a lot of loans available for investing, too. As of publication time, there were over 32 loans available for investing from various loan issuers, with plenty of diverse options available.
Loan diversification at Debitum Network – Good, not great
Debitum Network focuses only on receivables and business loans. These loans are issued mostly in Lithuania, Romania and Latvia. Loans are issued exclusively in EUR. This means that it doesn’t have the most diverse set of loans to choose from.
However, it does work with a number of different third party loan originators. This helps decrease risk somewhat, and adds some more diversification. The length of the loan terms also vary quite a bit – from as short as 7 days to 2-3 years. This helps you diversify your portfolio a bit more.
Overall, loan diversification at Debitum Network is okay, but nothing to write home about. We do not recommend using it as your only P2P lending platform unless you exclusively want to invest in receivables and business loans. It’s a better idea to diversify by using some other P2P platforms, too.
Debitum Network features – Most of what you need:
Debitum Network has some good features like a buyback guarantee, which helps protect your investment. If your borrower does not repay, you will not lose your capital. If the borrower is more than 90 days late on their payment, the loan will be repurchased by the broker.
Debitum Network also has an auto-invest feature, which will allow you to automatically invest in loans that meet your specified criteria. You can set your own requirements for loans, and automatically build a portfolio.
Debitum Network does lack a secondary market. However, it has a low investment minimum of just €10, and it’s quick and easy to deposit money via a bank transfer.
Debitum Network user experience – Quick & easy
The Debitum Network platform is very well-designed. It’s easy to navigate, sign up and transfer money. The process of getting started takes only a few minutes. However, you may have to wait a few days for your bank deposit to come through.
Browsing loans is quite simple and straightforward. It’s easy to learn more about each loan, see available interest rates and loan terms, and more. Then, you can choose the loans that are right for you. We did have some intermittent issues when refreshing pages, though, and the overall loading times could be faster.
Should I use Debitum Network? Risks & recommendations
The risks of investing using the Debitum Network P2P lending platform are mostly the same as using any other P2P lending platform. The primary risk is that your borrower may fail to repay. However, thanks to the buyback guarantee offered by Debitum Network, this is less of a risk.
In addition, there is the risk that Debitum Network itself may fail. However, because it works with third-party loan issuers, this is less of a risk compared to other P2P platforms. As long as you invest wisely, the risks of using this platform are minimal.