The ongoing concern of the business financing to small and medium-sized enterprises is an inevitable matter to discuss and to resolve. Various organizations have been trying to address this difficulty by creating alternative solutions, but all are still bias and demands to contract with intermediaries.

With the continuous economic prejudice to SEMs, a group of young entrepreneurs and technology experts assembled with one aim which is to create a decentralized system utilizing the blockchain technology focusing on solving this global financial issue. They’ve called this project, the Debitum Network.

What is Debitum Network?

Debitum Network is purposed to provide access to funds for various underbanked small and medium enterprises globally. It permits investors worldwide to finance in loans directly, i.e., avoiding traditional agents such as banks or investment funds. It is also a blockchain-based solution to unite multiple parties, operating different levels of a lending process, involving risk assessment, insurance, and debt collection, in a single, transparent, trust-based and conveniently accessible ecosystem.

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Decentralizing Using The Blockchain Technology

Disrupting the lending industry with a newer approach entails three principal characteristics: trust, full end-to-end financing process and structuring that maintains exponential growth. Any solution to meaningfully decrease the existing credit gap requires these main aspects:

A transparent and supportive framework.

Dealing with investment failures, to ensure certainty of global investors in credit assessment and debt collection methods.

Gaining distribution via an efficient sales channel.

The existing centralized solutions overpower several global counterparties with diverse cultural and experiential environments to trust a single party operating the marketplace. If the central party moves out of business, possibly, investors will not be capable of acquiring their investments back straightly from the borrowers. The blockchain technology is the only innovation that can provide the most significant solution.

The Ecosystem Pillars

The Debitum Network is comprised of three essential pillars that guarantee uniqueness, disruptiveness as well as assurance for a positive result on resolving the credit gap:

True Decentralization

Communities are decentralized and accessible worldwide, composing of multiple service providers and institutional borrowers or the alternative finance groups that are subsequently assisting SMEs that could bring more global investment and recreating their portfolio by utilizing Debitum Network.

Hybrid Connecting Crypto And Fiat

Blockchain assets or crypto tokens are not perceived as a traditional currency in most countries excluding Japan as most cryptocurrencies are considered too unpredictable. Business

borrowers and investors in short and medium duration would favor dealing with loan principal and interest payments in its conventional legacy way by fiat payments. Therefore, Debitum Network will only apply cryptocurrency for the network’s other transaction charges.

Trust-based

By connecting fiat services with highly trusted and valuable blockchain based financing processes, Debitum Network guarantees high interest from SMEs and investors. As lending is essentially directed by trust in the borrower’s capability to repay, Debitum Network ensures that all transactions interconnect with a trust arbitrage smart contract that provides fair trust ratings for every single counterparty and communities of counterparties such as risk assessors community in a single country.

The Debitum Token (DEB)

“Building a fast growing, trusted, self-governing and global business financing ecosystem,” is the primary goal of Debitum Network. They aim to develop a system around its members and operates a single ecosystem’s cryptocurrency, the Debitum token, to compensate for all the services performed. Only those owning Debitum token will be authorized to purchase several features via Debitum Network.

The DEB Token has two intrinsic values:

Value Exchange – as Debitum token is the only means of payments inside the Debitum Network

Toll – as all service providers should ‘freeze’ a particular amount of Debitum tokens to ensure execution of future assistance through the Trust Arbitrage mechanism.

Token Allocation

The specific utility of funds acquired will be balanced by the total amount of funds collected. The concept is that the more funds received, the more countries may be ‘launched’ within a shorter timeline. For Debitum Network to become a leading global company, they must make haste; as competition rises, ‘copy-cats’ with no regard for copyright infringement pounce on the opportunity. Another implication is that most of the funds are routed right back into market making and business expansion ensuring growth.

The Core Team

The Debitum Network team originate from the advanced technology company INNTEC and DEBIFO, a successful traditional invoice financing corporation in Europe. Headed by the three founders, Martins Liberts, Donatas Juodelis, and Justas Šaltinis, the company has a promising future because of the experience and expertise these leaders possess in their individual fields as distinguished technology and finance specialists.

The core team is comprised of motivated finance and technology experts who already have a strong track record of formulating working alternative financing ecosystem in Europe.

The team has utilized the solutions based on reviews, comments and suggestions contributed by the advisor team and community. They believe that Debitum Network, due to its design and architecture in both business and technical aspects can transform the SME financing into a reliable and secure network for all types of industries.

The Future of Debitum

Debitum Network has much greater potential for success in comparison to its competitors. A pertinent reason is that it can accommodate client’s demand to a required size and smoothly alter its focus to more profitable regions where there’s more demand. Secondly, it can with relative ease, incorporate cryptocurrencies to bring principal capital gain and further types of guarantees, including those new smart-contract-based varieties. Yet most significantly, Debitum Network will expand applications invested into it over time in the form of structural improvements of distributed software; not as tangible and intangible assets presented to political uncertainty.