How to make the most of Debitum Network

A year has passed since the launch of Debitum Network. Within the year close to 8 million EUR worth of assets were uploaded on the platform, more than 5 million EUR were invested in them, more than 1 million EUR were deposited by investors, and more than 2000 users registered on the platform. If you haven’t registered yet, it is high time to do it. In this post, we want to show you how to make the most of your Debitum Network experience as an investor. 

Create an auto-invest plan

“Work smarter, not harder” cliche best defines a smart investor. We have taken care of this for you by creating an auto-invest tool, which helps you to maximize your investment opportunities. You can create as many plans as you want. You may choose among three core templates: Conservative, Moderate, and Aggressive and set further parameters inside the plans. The tool helps you to stay ahead of other investors as the moment a new asset that meets your pre-set criteria is uploaded on the platform, the tool immediately invests in it. This ensures you never miss good opportunities. Previous week the asset we recommended on our blog post and newsletter was funded in a couple of hours. If you hadn’t invested in the asset before our recommendation you would have probably missed it. Thus, we highly recommend creating and enabling an auto-invest plan today. 

Choose credit scores that appeal your risk tolerance best

We want to remind you that one of the key advantages of Debitum Network over other alternative investment platforms is that we use independent third parties for risk assessment. It increases transparency, you get a more precise credit score, and it serves as an additional safeguard for your funds. Platforms that do their own generic risk scoring can be manipulated scores to their advantage giving better scores to poorly performing companies to increase investment in the assets those companies provide. You can be sure that we do not do that on our platform as we use local risk assessors who have resources and access to finance/business databases of specific countries. 

The best risk score on our platform is A+, the worst F. We do not accept assets with F scores as the probability of default for these assets are very high. Typically, the higher the credit score, the lower the interest rate, and vice versa. The vast majority of assets on our platform B, B-, and B+ scores. However, it is up to you. If you want higher returns and ready to invest in riskier assets, C-D credit score assets might be right for you. Refer to the table below to see the probabilities of default for specific credit scores.

Diversify

Among short-term and long-term assets

Most of the assets on our platform are short term: from 1 week to 2 months. These are really good for a fast turnover of your capital and earning compounding interest. On the other hand, if you want to spread your investments over many assets, be sure to include also assets that have repayment beyond 2 months: 3 months – 3 years. The advantage of long term assets is that you do not have to think about the repayment date, as it is far away. You can simply invest and forget. Monthly interest will be automatically paid to your account (if interest is set to be paid monthly). 

Among various industries

Assets on our platform come from various business industries: Wholesale, Logistics, Services, Construction, Real Estate and etc. As American economist Robert J. Shiller said: “The future is always coming up with surprises for us, and the best way to insulate yourself from these surprises is to diversify.” Most of the assets on Debitum Network are protected by buyback guarantee. Yet, it is smart to diversify and earn interest among various industries. In this way, you can also earn an extra penalty rate if the borrower fails to repay the loan in time (after the grace period is over). We strongly recommend looking at the assets from the Real Estate industry provided by our newest partner and loan originator Vihorev Investments. The industry is getting more traction and most of the assets are long term. However, interest is paid monthly. Consider adding the assets to your portfolio.  

Among various risk classes

Various risk classes will offer different returns. Therefore, if you are an investor who likes to diversify and spread your capital among many assets, you can implement three different auto-invest plans and invest in all risk classes. Some institutional investors who invest on our platform, invest in all available assets. You can do the same, as the minimum investment amount into a single asset is just 10 euros. If you do not like auto-invest and want to do your own analysis and invest manually, you are most welcome to do so. 

Comment from our Risk Analyst Gytis Juskys

“Taking into consideration the safety of the platform I would consider investing in riskier assets. For instance, there are assets that are ranked with D credit rank and have the buyback guarantee. There is a higher probability that these assets will be late for more than 15 days and the penalty rate will be added to your returns. At the price of 1% of interest (which is usually negligible amount, if we consider short-term investments) you can achieve much higher returns at the same risk level. Even if we account for the probability of default, the aggregate result will be better than constantly re-investing the same amount many times. Saving time, earning higher returns, and keeping the same risk level – sounds good to me!”

Top asset of the week

The top asset of the week comes from our partner and loan originator Chain Finance. The borrowing company is a European based distributor of vehicle parts and accessories with a focus on service structure and quality, creating the highest value for the customer in the auto exploitation market. The Company has more than 14 million EUR in revenues, employs more than 80 people, and has been in business for more than 27 years. Sounds good enough? Check out the asset and if you like it, be sure to add it to your portfolio.


Disclaimer: Investments in financial products are subject to market risk and any investment should only be done with risk capital. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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