Debitum review 2025
Read our Debitum review, and decide if the platform is for you.
Debitum
Pros
Cons
Debitum review summary:
Debitum is one of the best P2P lending companies for small business financing. The platform is very popular among its investors, and it is one of the best-rated P2P lending companies on Trustpilot. Investors interested in lending money to businesses are highly recommended to take a closer look at Debitum, as it is one of the leading platforms in business financing right now.
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Introduction to our Debitum review
We examine how Debitum sets itself apart, assess its safety, and share our investing experience and opinions. Please note, this Debitum review is solely our perspective and not investment advice.
Learn about the following in our Debitum review:
- What is Debitum Investments?
- What is the return on Debitum?
- Is it safe to invest on Debitum?
- Who can invest on Debitum?
- How to invest on Debitum?
- How to withdraw money from Debitum?
- What are the best Debitum alternatives?
- Conclusion of our Debitum review
What is Debitum Investments?
Debitum Investments (formerly Debitum Network) is a Latvia-based peer-to-business (P2B) lending platform that connects investors with small businesses seeking funding. It was launched in 2018 and specializes in offering asset-backed securities, typically starting from investments of €10.
Debitum operates by listing business loans on its marketplace. Investors choose which loans to fund, and borrowers then use the capital to grow or stabilize their businesses. In return, investors receive interest payments until the loan is repaid.
The platform has attracted around 18,000 investors and has successfully funded over €112,500,000 worth of business loans.
Debitum is a regulated platform. It obtained its investment brokerage license in September 2021 and is supervised by the Latvian Financial Supervisory Authority under MiFID II.
Debitum statistics:
| Launched: | 2018 |
| Investors: | 18,000 + |
| Interest rate: | 9 – 16.5 % |
| Loan period: | 3 – 48 months |
| Loan type: | Business |
| Loans funded: | € 112,500,000 + |
| Min. investment: | € 10 |
| Max. investment: | Unlimited |
Debitum Investments Trustpilot rating
Debitum Investments has received a TrustScore of 3.5/5 based on 58 reviews on Trustpilot. While many investors praise its regulated status, responsive support, and timely interest payments, others cite slow account verification, ongoing issues with war-affected or frozen funds, and a lack of certain features like an advanced auto-invest or secondary market. Nonetheless, Debitum’s transparent communication, diversified loan options, and overall reliability continue to earn it support from a significant portion of its users.
What is the return on Debitum?
Debitum’s average annual investment return is 14.83%. Compared to many other P2P lending platforms that hover between 10% and 12%, this higher figure can imply an elevated level of risk. Investors may experience a gap between advertised and actual returns if their funds remain idle too long — an effect known as “cash drag” — which can reduce the overall effective yield.
The interest rates on Debitum ranges from 9% to 16.5%, reflecting a relatively competitive bracket within the P2P market. While Debitum’s returns have generally demonstrated stability, the precise outcomes can still be influenced by overall market conditions, loan availability, and each investor’s individual strategy.
Time-limited welcome bonus
Readers of this Debitum review are eligible for a 1% cashback bonus on all investments for 30 days. To unlock this time-limited offer, new investors must sign up using the button below and invest at least €10. No Debitum promo code is required.
Does Debitum withhold taxes?
Debitum is legally required to withhold taxes on interest income from loans on its platform. This can make handling your taxes more complex than on platforms such as Maclear, EstateGuru, or PeerBerry, which do not withhold taxes.
The standard withholding tax rate on Debitum is 5% for EU/EEA tax residents and 20% for all others, including Latvian tax residents. Investors from Lithuania can reduce their tax rate to 0% by providing a valid tax residency certificate.
Tax report
Debitum provides a tax report to help you declare your earnings to local authorities. You can easily download your account statement from your dashboard on the Debitum platform.
Is it safe to invest on Debitum?
Debitum is one of the safest P2P lending platforms in Europe. It has been operating since 2018 without any capital loss reported for investors. The vast majority of loans on Debitum include a buyback guarantee, and the platform is known for having a reliable buyback in time. Currently, 98.23% of all investments are repaid or are on track, with only 1.77% restructured assets related to war-affected loans in Ukraine.
Licensed and regulated platform
Debitum Investments is a regulated under the supervision of the Latvian financial regulator FCMC since 2021. Its regulated status indicates that Debitum is a legitimate platform and not a scam.
Profitability
Debitum is a profitable P2B lending platform.
Insolvency protection
Debitum participates in the national investor compensation scheme of the Republic of Latvia, aligned with the EU Directive 97/9/EC. If the platform becomes insolvent and cannot provide investment services, retail investors are eligible for compensation covering 90% of any irreversible loss, up to a maximum of €20,000.
Debitum is required to keep investor funds separate from its own account, which means that in the event of insolvency, investor funds are safeguarded and cannot be accessed by creditors to settle Debitum’s debts.
Loan originators
Debitum has 3 loan originators and 5 note issuers in 3 countries, resulting in a narrower diversification profile compared to larger marketplaces such as Mintos or PeerBerry.
Debitum requires loan originators to retain 10-30% skin in the game on each loan, with is better than the industry norm of 5-10%. By holding a portion of the loan themselves, originators share the risk with investors. This shared responsibility typically encourages more careful underwriting and discourages reckless lending practices.
A major advantage of Debitum is that loan originators are required to keep a junior share, rather than just having skin in the game as on most other platforms like Mintos. Since the P2P investors hold the senior shares, they will be paid first in the event of defaults or losses.
Asset-Backed Securities (ABS)
Debitum offers investments in Asset-Backed Securities (ABS), which provides better diversification than claim rights.
Asset-backed securities are basically derived from a pool of underlying assets (loans). This is illustrated in the following:
Secured loans
Debitum Investments stands out in the P2P lending market by only offering investments in secured loans with easily convertible collateral. Common forms of collateral on the platform include commercial pledges, mortgages, invoice receivables, guaranteed state tax repayments, and even accrued gaming-platform receivables from App Store, Google Play and Steam. This diverse array of collateral types helps protect investors’ capital by enabling quick liquidation if repayment issues arise.
Buyback obligation
On Debitum, most loans are covered by a 90-day buyback obligation. This means that if a borrower is more than 90 days late with repayments, the loan originator automatically repurchases the loan from the investor along with accrued interest.
The Debitum buyback guarantee has a duration of 90 days, which is worse than the industry standard of 60 days, as seen at Mintos and VIAINVEST. The shortest buyback duration on the market is offered by Robocash and Loanch at 30 days.
Investors should keep in mind that the reliability of the Debitum buyback obligation depends on the financial stability of the loan originators. If the loan originators are unable to buy back the loans, the buyback guarantee becomes worthless.
Late penalties
Debitum Investments enforces substantial late penalties of 10–20% per year on loan originators to promote timely repayments. These penalties are directly passed on to investors holding the affected assets. Following a seven-day grace period, the penalty phase begins and can last up to 83 days. After this period, the buyback guarantee takes effect.
Two-factor authentication
Debitum offers two-factor authentication (2FA) to strengthen account security. This feature works with the Google Authenticator app, generating unique, time-based passcodes that protect investor funds from unauthorized access. Since hackers have targeted P2P lending platforms in the past, enabling 2FA is strongly recommended.
Who can invest on Debitum?
To be able to invest via Debitum’s platform, it is a requirement that you are at least 18 years old. At the same time, it is a requirement that you have a full and unrestricted legal capacity and that you are able to meet monetary obligations. Of course, one must not be declared insolvent.
How to invest on Debitum?
Before you can start investing on Debitum, you must complete the following steps:
- Sign up on the Debitum website.
- Verify your identity.
- Complete the KYC questionnaire.
- Deposit funds into your account.
The entire registration process usually takes about 5-10 minutes, including signing up, verifying your identity, filling out any required questionnaires, and making your first deposit.
You can deposit money into your Debitum account using SEPA transfers, UK local payments, and USA local payments. The minimum deposit is €10, and funds typically arrive within 1-3 business days. It is only possible to deposit funds in Euros (EUR).
Once you have funded your account, you can start investing in business loans on the platform. Debitum allows you to invest manually by browsing available loans or automatically using an auto-invest strategy.
Debitum auto-invest
Debitum provides an auto-invest feature to automatically allocate funds into suitable loan investments based on each investor’s predefined criteria, saving time and simplifying the investment process.
The auto-invest tool enables you to configure key parameters, including portfolio size, maximum investment per loan, interest rate, loan term, loan type, and loan originators. You can also automatically reinvest all returns.
Debitum’s auto-invest tool stands out from competitors thanks to its auto-withdrawal option, which automatically transfers interest income to the investor’s bank account on the 5th of each month. This feature is available only to investors whose balance exceeds €10,000.
Setting up a Debitum auto-invest strategy only takes 1 minute, and your funds should be invested within a few hours. If your auto-invest is not working, it is usually due to a lack of loans that meet your criteria. This can happen when your filters are too narrow or when no suitable loans are available.
How to withdraw money from Debitum?
You can withdraw your uninvested funds from Debitum at any time using the withdrawal section of your investor account. The minimum withdrawal amount is €0.01 and it usually takes 1-2 business days for your funds to arrive in your bank account.
Debitum does not charge any fees for withdrawing funds from your account, but your bank may charge fees for receiving international transfers.
To exit Debitum, you must first turn off all auto-invest strategies and wait for any outstanding loans to mature. If you hold non-performing loans, the platform must first recover the underlying debt before allowing withdrawals, which can negatively affect your liquidity.
No secondary market
Debitum does not have a secondary market, which means that investors must hold loans until they reach maturity. This is a major drawback for short-term investors as the loans have long durations of up to 530 days.
The lack of a Debitum secondary market is a major drawback compared to other platforms like Maclear and HeavyFinance, which offer secondary markets for enhanced liquidity.
What are the best Debitum alternatives?
Some of the best alternatives to Debitum are Crowdpear, Maclear and Scramble. These P2B lending platforms each offer a distinctive array of specialized projects, providing investors with unique alternatives that clearly differentiate them from Debitum Investments.
Conclusion of our Debitum review
Debitum is one of the best P2P lending platforms in Europe for SME loans. The platform stands out for its regulated environment, stable track record, and an asset-backed approach that helps mitigate risk.
While Debitum offers high average returns with a 0% default rate and a reliable buyback guarantee, it lacks a secondary market for liquidity and has limited diversification options.
Debitum is worth considering for investors seeking reliable exposure to SME loans and competitive returns. It is not good fit for short-term investors who need quick liquidity or those looking for a more diverse range of loan options. If you seek an option with quicker exits and more diversified loan selections, explore other P2P platforms.
Would you like to invest via the platform after reading our Debitum review? Then press the button below to sign up and get started:
