Interview with an institutional investor on Debitum Network platform
Since its’ inception Debitum Network has aimed to be a platform that is open for both individual and institutional investors. We want to grow and offer a large variety of assets with attractive interest and all safety guards for users on our platform. It has been 9 months since it went live, and we managed to attract quite a large number of individual investors and some institutional ones. We sat down to talk with one who invests for his company and asked about his experience investing on our platform. Below is the interview!
DN – Debitum Network
INV – Institutional Investor
DN: What is your investor’s profile – how and what do you invest in?
INV: I represent an investment company which is investing significant amounts into the SME sector throughout Europe. We analyzed this sector and we believe that currently, it’s a great opportunity to get a really attractive risk and return ratio. This sector seems to be healthy, growing and there is a possibility to earn two digit returns.
DN: How could you describe your investment in Debitum Network goals?
INV: I guess that most of the investors and our investment company is not an exception, seek for safe and liquid investments with attractive return rate. Our goal is to earn at least 10% p.a. return. We are also satisfied with around 8% return p.a., provided the investments are short-term and we have more flexibility.
DN: When did you decide to invest on Debitum Network platform?
INV: We have been investing on Debitum Network platform almost from the beginning – from late 2018. We are using Debitum Network and consistently increasing our investment.
DN: I understand you have invested on other lending platforms. What advantages of Debitum Network do you see over other P2P (P2B) platforms?
INV: First of all, most of the platforms in the market focus on consumer lending. According to our research and our investment strategy, SME loans are safer and more attractive for use. Secondly, the product – the platform itself is one of the best in the market and we already saw screens of a new version of the platform – it will be even better. Thirdly, loans on the platform are really good quality. We have made our own research about current loan origination and the results speak for themselves.
DN: How do you select assets for investments?
INV: Currently we invest in almost all the loans as they are all quite short term and with a buyback guarantee.
DN: Do you prefer any industry? How do you diversify?
INV: We have a stake in almost every loan (consequently, in every industry) on the platform.
DN: What have been the returns?
INV: Currently we have a 9% average interest rate from all the loans we have invested in. Interest rates on the platform are rising and we will soon reach 10% average interest.
DN: Have there been any late repayments or defaults?
INV: The platform is great and we can clearly see all the loans which are late. There are some loans which are late – it’s normal in the lending business. The good thing is that we earn additional penalty interest from a late loan. After using the platform for more than 6 months, I can testify to the fact that we have had 0 defaults until now.
DN: Do you invest manually, or use an auto-invest feature?
INV: We invest manually.
DN: What do you think are the advantages of investing in short term loans over other investment options?
INV: Liquidity and possibility to have flexibility are always good in the investment world.
DN: Do you think that investments in Debitum Network are sustainable? Why?
INV: Definitely sustainable and they have a very bright future. There will always be a lot of SMEs and they will always need money. Banks’ financing is shrinking and players like Debitum Network will be game changers in SME financing world.
DN: What features do you wish Debitum Network to implement or how to improve our platform in the future?
INV: For us, as professional investors, more analytical tools would be great. Likewise, if SMEs would be able to apply for a loan directly on the platform, it would also be a great feature.
DN: Thank you for the interview. We wish you long lasting and even better results investing on our platform.
INV: Thank you.
Want to be an investor on Debitum Network platform?
Investors join our platform every day and earn attractive interest by investing in low-risk short term loans for SMEs. You can do the same and start making profits from day one. All the assets have a buyback guarantee, the minimum deposit is 50 Euros, minimum investment amount – 10 Euros. You can leave any time you want.
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.