European Financing Platform Debitum Shares Key Updates, Strategy for 2023

February has started with “great news” from Debitum‘s UK Loan originator, the company Triple Dragon.

Two new A+ ABS programs are added to Debitum. Both programs are “on increased interest rate – by 1% p.a. compared to the regular rate.”

1st ABS program details:

  • Total loan amount – 270 000 EUROS
  • Interest – 9.00% p.a.
  • Period – 6 months
  • Category – A+
  • Collateral – accrued game developer receivables. Overcollateralized with accruing future revenues from blue-chip gaming, advertisement companies, and governmental institutions

2nd ABS program details:

  • Total ABS amount 340 000 EUROS
  • Interest rate – 9.25% p.a.
  • Period – 8 months
  • Category – A+
  • Collateral – accrued game developer receivables. Overcollateralized with accruing future revenues from blue-chip gaming, advertisement companies, and governmental institutions

In another update from Debitum, it was noted that everyone who is active in business has forged plans at least for the year.

Debitum CEO Henrijs Jansons said:

“We have stepped into 2023 with many great learnings from the previous year about what’s important for the business and for our investors. Based on those lessons we have built the roadmap for 2023 and I’m confident this year will bring great results for us and the community around Debitum. Continuous and significant improvement of customer service, bringing new products to market, and offering more attractive investment options for investors, are Debitum cornerstones for plans to become true.” 

And first milestone in this year’s roadmap is already launched.

Starting from February new Loan Originator – company Flexidea Polska – “with a great offer to investors is available.”

Currently, there  “are two Flexidea Polska ABS programs with 3-and 6-month periods and interest rates 11% and 11.25% p.a. available.”

Flexidea, the mother company of Flexidea Polsa in Latvia “operates since 2018 and is well known to Debitum investors. On Debitum more than 20.3 mln euros have been invested in Flexidea Latvia assets.”

Flexidea follows its growth plans.

As mentioned in a blog post:

“If we look back, the year 2022 was a great milestone for Flexidea. We signed the credit line with the US fund that provided us with a 5 mln euros credit line. In July as the new institutional investor Helenos Impact Fund (Belgium) joined Flexidea as a shareholder, we received a new equity injection which is used to launch Flexidea in new countries. Our plan is to open several new markets in CEE and in 2022 we started implementing our plan.”

In May registered company Flexidea Polska in Warsaw and only a few months later – in July 2022 first invoices “from Polish SME were financed.”

Sergei Demchuk, a member of the board at Flexidea Polska is “highlighting key success milestones in current business development events.”

Poland with a population of 37 million people is “the biggest economy in CEE and a very attractive market for factoring services (8th largest factoring market in Europe).”

Since Flexidea Polska launch in mid-2022 “over 400 invoices for 12 mln Polish zloty (2.5 mln euros) have been financed.”

With 25 active clients at the end of 2022, the portfolio size “has reached 4,5 mln zloty.”

All financed invoices are “repaid in time or within the grace period and no default happened.”

As noted in the update:

“The profile of our clients in Poland will remain generally the same as it is for Flexidea Latvia. We will service SMEs and micro-companies that do not meet the requirements of the banks due to their small size or the small financing amount required. These companies are not attractive to banks but very interesting Flexidea Polska. We service companies who match our risk assessment filters, like – 1) they are AML compliant, 2) their annual turnover is up to 1 mln euros and number of employees variates around 20, 3) these companies invoice established enterprises with high credit-rating and with low debtor default risk. Following these golden rules, we expect to grow fast and in the year 2023, Flexidea Polska aims to reach a portfolio of over 4 mln euros. For that, we need strong partners that can provide funding. And here Debitum steps into our business lifecycle. This year we expect to attract approximately 2 mln euros via Debitum platform.”

As Flexidea Polska due diligence and onboarding process is successfully finished and approval from Regulator is received, “the first ABS programs for approx 600 000 euros as new investment opportunities in Debitum are available.”

Flexidea Polska for those investment assets “offers a very attractive rate of return – starting from 11% p.a.”

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