Wholesale industry on Debitum Network platform

The wholesale industry was the third in popularity among investors according to a percentage of funds invested into assets of specific industries in the month January; just 0.5% behind Logistics industry and 10% from the leader – ITT industry. We want to share the chart of the month of January and outline what are the benefits of investing in the assets of the wholesale industry on our platform.

Wholesale assets have high credit scores

Wholesale assets on our platform have the highest credit scores among the available industries. They range from B to A-. It means, that according to our risk rating partner Scorify (a veteran expert in the field) the assets are the least risky investment options and could be the best investment choice for an investor who is interested in the safest types of investments. As interest rates for the assets range from 8% to 11.5% they should be attractive for moderate risk and high-risk tolerant investors too.

All the assets in the industry have a buyback guarantee

One of the best ways to ensure the safety of an asset from a broker’s side is to offer a buyback guarantee. A buyback guarantee means that if the borrower is late with repayment of the given asset by a specific number of days set by a loan originator (in most cases it is 90 days, but it depends on the loan originator), the broker (loan originator) who issued the loan has to buy it back together with the outstanding principal and interest. Taking into account, that all the assets uploaded on Debitum Network platform are carefully handpicked by our partners loan originators, the likelihood of a default is very small and even if that happens, investors’ funds are protected under a buyback guarantee. All the assets in the Wholesale industry on Debitum Network platform have a buyback guarantee.

The assets in the industry have an extra guarantee from owners

Businesses that borrow will usually provide extra guarantees, which strengthens their credibility for loan originators and increase the likelihood that the loan amount will be covered even if the company defaults on its’ payments. The most typical guarantees that the businesses offer are personal guarantees (from 2-4 owners of the company), invoices for the goods sold, equipment (warehouse, machinery, cars, and etc.) future receivables, and a few more. Wholesale assets have at least one or a few of these.

Final payers of invoices are strong companies

Borrowers whose assets are placed on Debitum Network platform deal with other businesses by offering them various services. The companies the borrowers do business with are strong companies with revenues exceeding 100 million Euros, have a lot of customers from different geographical locations, and decades of experience in a specific market sector. Quite often, they are also regular customers of our loan originators, which proves that they are reliable business partners and will pay invoices as they had done it before.

The borrowers and their clients are well-established players in specific market sectors

The borrowers in the industry of Wholesale (whose assets are uploaded on our platform) have been in business for 19 years on average. Their revenues are steady, most of them have borrowed from our loan originators before, and have successfully repaid their debts. They are well-established players in their field and their steady revenues increase the probability that they will repay their loans. Purchasers of invoices are similarly long-term and strong market players. You can find that on your own by reading ‘Under Asset description’, which each asset page has.

If you want to find out more about a specific investment or the company that borrows, what it does, its’ financial statement, before committing your money to a specific asset, you should press ‘View’ button and ‘Asset Detail View’ window will pop up. Press ‘Borrower & under asset details’ and you will find the purpose for taking a loan, what sector the borrowing company is in, when it is registered, more description about the company (some numbers, experience in the field) and ‘Under Asset description’ (usually info about the purchaser about the final buyer of the invoices). You may find even more useful info and benefits (not discussed above) of investing in that specific asset.

Attached documents provide more financial info about the borrower

Loan originators typically provide a financial summary (this depends on the loan originator), which is uploaded and can be found on ‘Borrower and Under Asset Details’ page. The pdf file discloses financial info about the borrower and the purchaser of invoices, so an investor may know the financial situation of both the borrower and the invoice buyer. If you are a financial person, this page will be really helpful for you to get a better grasp of the financial well being of the borrower and his customers.

Selected assets from Wholesale industry

We hope you see the benefits of investing in the assets and, therefore, we want to offer the investors on our platform to consider adding some of the assets from the Wholesale industry to their portfolios. Below are the selected top 2 assets from the industry for this week. Both wholesalers sell stationery goods and have been in business for over 15 years. The assets are from our newest partner and loan originator TradeBacking that provides loans via trade financing. Do not hesitate as assets on our platform are funded quite fast.

Ready to invest?


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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