Once you make an investment, your funds are committed for the entire loan term, which is displayed for each asset. No, early redemption of investments is not available on Debitum Investments. Once an investment is confirmed and its status is marked as "Invested," the funds are contractually committed for the full term of the loan. This means that the principal amount and any accrued interest will only be returned according to the asset’s repayment schedule, typically at maturity. As Debitum does not currently offer a secondary market, it is not possible to sell or exit positions early.
How your principal (the initial investment) is returned depends on the asset's repayment schedule:
1. Bullet loans
This is the most common type on our platform. For a bullet loan, your principal is committed for the full term and is returned to your account in a single payment at the end of the term. You will typically receive interest payments regularly (e.g., daily or monthly) during this time.
2. Amortizing loans
For loans with a full or partial amortization schedule, your principal is returned to you in installments throughout the loan's term, along with your interest payments.
What if an asset is late?
If a borrower is late with a payment, your invested funds remain committed. If the loan becomes overdue (e.g., by 60 or 90 days, depending on the originator), the loan originator's buyback obligation is triggered. Your outstanding principal and any accrued interest will be returned to your account at that time.