Partner Stories: Meet Sandbox Funding, Our Key Loan Originator
“Why is Sandbox Funding everywhere on the Debitum Investments platform?”
This is a fair question we hear often. It’s true that Sandbox Funding has a significant presence on our platform. The “why” behind this reveals much about how Debitum Investments operates and serves its investors.
So, it‘s time we unwrap everything you’ve wanted to know about Sandbox Funding: its business model, recent financial performance, and collaboration with Debitum Investments.
Quick Facts
0%. 100%. 1843%.
These are the real numbers showing the percentage of defaults, repayments made on time, and the increase in Sandbox Funding’s equity since it was established 1.5 years ago.
But it’s more than impressive stats.
In practice, it shows how accountable and efficient Sandbox Funding is: loans are issued to vetted borrowers only (1 in 10 companies make it through the screening process), repayments are collected as scheduled, and the funds are promptly returned to investors along with earned interest—every time.
Even when something goes wrong (e.g., an underlying borrower, SIA Power Capital, reg. nr. 40203444130, faced repayment challenges), it’s not just the numbers that demonstrate Sandbox Funding’s commitment to its promise to investors. The borrower is undergoing loan restructuring, while Sandbox Funding fulfilled its buyback obligation on behalf of the borrower and ensured full principal and interest payments to investors on time—using its own capital (despite a late repayment of €1.785M on a €2.225M loan.)
The Origin Story
In 2023, we at Debitum Investments asked ourselves:
How can our investors gain access to more investment opportunities, faster?
The answer was simple. We needed a solution to streamline partner evaluation and loan origination.
This required a vehicle that could speed up the process of evaluating and onboarding potential partners through a synergy of an automated loan management system, extensive risk evaluation, thorough financial assessment, and an intentionally rigorous borrower vetting approach.
Putting it into action, however, was another story (and this is the story of how Sandbox Funding was established.)
Sandbox Funding’s Model
The collaboration between Sandbox Funding and Debitum Investments is elegantly simple.
Sandbox Funding carefully evaluates businesses, secures appropriate collateral, and issues loans using its own capital. When a loan is securitized, our investors gain access to these thoroughly vetted opportunities, backed by stable performance indicators.
Additionally, Sandbox Funding secures collateral from borrowers while maintaining a 10% “skin in the game” (meaning Sandbox Funding retains a 10% stake in every loan they issue), ensuring an added layer of protection for investors.
“Sounds good, but where’s the proof?” Well, the proof is in the numbers:
Now, with a current loan portfolio of €18M, Sandbox Funding has become our largest loan originator, serving sectors like forestry, energy production, construction, and finance, with:
- Total investments of €28.5M
- €18M in outstanding investments
- €1.2M in paid interest and €10.5M in repaid principal
- Average ABS returns equal to 13.21% per annum
It works that well because Sandbox Funding’s model has created a win-win scenario.
For investors, it provides access to highly vetted borrowers with stable performance indicators, faster.
For SMEs, it addresses a critical gap in Latvia’s financing sector, offering quicker and more accessible funding solutions than traditional banks.
For us, it solves a classic industry challenge: onboarding new partners to the platform more efficiently.
And Finally, The Most Frequent Question, Answered
“Isn’t Sandbox Funding owned by the same people as Debitum Investments?” Many investors ask this, and the answer is yes—with strategic intent.
It’s true that Sandbox Funding is our fully controlled ally company, and we aren’t hiding it. Quite the opposite: it’s how we ensure the highest quality of investment opportunities for our investors and we’re proud of that.
But our caution, due diligence, and transparency-driven approach remain the same when it comes to Sandbox Funding’s operations.
How?
We regularly publish quarterly Sandbox Funding financial reports to provide investors with a clear view of its performance (check the latest reports). This obligation is outlined in the Partnership Agreement between Sandbox Funding and Debitum Investments.
By sharing financial data regularly, we’re putting transparency front and center—keeping investors and stakeholders in the loop with clear, consistent updates on the company’s financial health and performance.
Closing Thoughts
The Sandbox Funding story is about building a bridge between ambitious SMEs and savvy investors. It‘s about creating a financing model that works for everyone. Most importantly, it’s about doing things right and transparently, one carefully vetted loan at a time.
Explore current investment opportunities by Sandbox Funding.
This is a marketing communication and should not be interpreted as investment research, advice, or an endorsement to invest. The historical performance of financial instruments is not indicative of future outcomes. Investing involves risks; the value of investments may fall as well as rise. Be sure to assess your knowledge, experience, financial situation, and investment goals before investing.