Debitum is a regulated investment brokerage platform, which means we do not lend money directly to businesses. Instead, we connect investors with professional lending companies "Partners" who have already issued loans to businesses.
Here is a simple, step-by-step explanation of the funding process:
A business needs a loan: A small or medium-sized enterprise (SME) applies for a loan from one of our trusted Partners.
The Partner issues the loan: The Partner conducts its own due diligence, verifies the borrower, secures collateral, and issues the loan to the business from its own funds.
The loan is listed on Debitum: The Partner then bundles this loan (or a pool of loans) into a financial instrument (an Asset-Backed Security or Note) and lists it on the Debitum platform.
You invest: You (the investor) browse the available assets on our "Invest" page and decide to invest your funds.
Your funds go to the Partner: Your investment money is transferred to the Partner, which refinances the original loan. This frees up the Partner's capital, allowing them to issue new loans to other businesses.
Repayments are managed: The end-borrower (the SME) makes its repayments to the Partner. The Partner then passes these repayments (both principal and interest) to Debitum, and we immediately distribute them to your investor account.
You can also find a simple visual explanation of this process by going to our "Partners" page: https://debitum.investments/en/partners/