How Sandbox Funding works
For a person to grow, nutrients and food are needed. They help the human body to develop and become stronger. For companies, the fuel for growth is financing.
Debitum investment platform is based on cooperation with SMEs. Our primary goal is to evaluate companies who are financing businesses and help them provide funding – nutrition and food – to new businesses in need. This is an investment object that provides attractive profits and are backed by solid collateral thus interesting for our investors.
Springboard for SMEs
Attending conferences and meeting with businesspeople, we see that still many companies – even those that have been operating on the market for several years and show healthy business parameters – are unable to get the necessary financing for business growth quickly and easily. We, Debitum, see the potential here, so we are expanding our scope, creating an environment or a place where such companies can get financing more easily, and on sustainable conditions” says Henrijs Jansons, CEO of Debitum.
Previously, our onboarding process for these types of companies was too time-consuming and bureaucratic and thus financially not reasonable as every company who wants to place assets in Debitum platform must comply with Regulator requirements which come with a considerable fixed cost. The burden of paperwork was disproportionately large compared to the funding needed.
To reduce paperwork and speed up the process, we have created Sandbox Funding (www.sandboxfunding.eu) – a company affiliated to the Debitum group, which we can consider as a starting ground for attracting funding for SMEs with stable performance indicators.
Sandbox Funding has undertaken the bureaucratic procedures, already meets the Regulator’s requirements, and is ready to evaluate and offer financing to companies in a way shorter period and with less fixed costs. For SMEs, this means new and more flexible opportunities in attracting financing.
For Debitum investors, this means new and promising investment objects on the platform. We forecast that the average annual rate of return for such investment objects will be 10-12%. Combining such rates with investor protection mechanisms offered by the platform will create very interesting investment opportunities.
The first on Sandbox Funding springboard
The first companies that are using the Sandbox Funding services are two Latvian energy plant companies. One of those companies has been operating in Latvia for more than 5 years with annual revenue of 6 mils Eur, a net profit of 1.2 mils EUR, and has contracts with a municipality heating provider.
“We are releasing a second Sandbox Funding ABS program in Debitum covered by the energy plant. The total amount is 480 000 euros (with 10% skin in the game) at a rate of 12% p.a. As we can see, the energy sector is and will be one of the hot industries in the foreseeable future, where steady growth and stable financial indicators are expected. Therefore, I invite investors to look closer to our newcomer, and to follow the events on the platform, because Sandbox Funding is working to recruit already the next businesses,” continues Henrijs Jansons.
Before investing we invite you to read documents related to Sandbox Funding and the new ABS. You can find these documents in ABS preview, document section – click here.
The SME sector is one of the key economic driving forces of each country. Yes, in general, this sector seems to be more difficult to predict. But if you look in more detail, you can find a lot of stable, successful, professional companies that operate in a certain niche and show outstanding results. Supporting these companies is the direction Debitum and it’s affiliated companies are going.