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We are very pleased to announce our cooperation with the Lithuanian company DEBIFO, which provides invoice financing services to small and medium enterprises with their invoices (i.e. accounts receivables) as collateral. DEFIBO has been in operation since May 2015 and has already financed over EUR 1 million of invoices. This is great news for our investors as the cooperation opens up even wider possibilities to diversify investment portfolios using the new short-term investment product on the Mintos platform.
DEBIFO’s clients are SMEs, for whom stable cash flow is critical to maintaining sustainable operations. These companies usually supply or provide services to trustworthy and large corporates. Such clients typically require long payment terms that are difficult to endure for small suppliers. DEBIFO clients operate in numerous business sectors, including production and trade of chemical products, trade of industrial equipment, production of beverages, trade of medical supplies, medical services, forestry and construction.
The forecast for this year’s return is 13%.
DEBIFO finance up to 90% of the total outstanding invoice amount which may not exceed EUR 30 000. On average, invoice amount is in range of EUR 5 000 to EUR 10 000. In most cases, the payment term is 30 to 60 days.
DEBIFO has developed stringent credit risk assessment policies. The key indicators evaluated when considering a potential lending client include the company’s and its debtor’s financial data, the terms of the contract, prior receivables payment history, corporate structure, client portfolio, business operations, and various other factors. As a result, the delinquency rate of the DEBIFO portfolio has remained negligible despite continuous growth.
All invoices are originated, pre-funded, and serviced by DEBIFO. This means that the loans we put on the platform have already been funded so you can start earning interest as soon as you have invested in a loan. To align interests with investors, DEBIFO will retain 5% of each invoice on their books.
Get to know and invest in DEBIFO’s financed invoices: www.mintos.com/en/invest/available-loans/