Our product intends to decentralize the financing process. Currently, all steps of the financing process are carried out by one financial institution in a centralized manner from the very beginning to the very end. As a result, such financier can only operate in the local market due to the lack of infrastructure abroad (otherwise it becomes very expensive). Moreover, the capacity of financing is also limited, resulting in only a fraction of SMEs’ needs being fulfilled. Debitum Network will be an ecosystem where participants from all around the world will perform separate steps of the financing process. For example, a German SME needs funding, so it joins to Debitum Network; a risk assessor from Germany rates the risk; credit insurance company from France performs the insurance; a fund from the UK provides the money; a local debt collector from Germany either collects or buys the debt.
Relations between business borrowers and lenders are complex, but they can be standardized and streamlined. We build Ethereum-based decentralized ecosystem where operators of the financing market can access their clients in a more advanced way and lower costs. Operators are companies (or even individuals) who either aggregate the demand (investors/lenders) or supply (borrowers), or both. There are service providers like risk assessors, insurers, debt collectors, provision/collateral valuators, etc. Debitum Network will also act like a integration medium for various technical solutions which are related to financing process.
While technically, in terms of economical effectiveness, Debitum facilitates the process of financing, it is an opportunity for professional operators in the financing industry to enter the global market with no barriers. For example, local risk assessors working in their domestic market would be able to sell their services for global investors willing to invest in their market.
Debitum aims to create a self-growing network based on trust by uniting fragmented regional registers of business borrower trustworthiness on the blockchain basis.
Debitum purpose is to provide an access to the lucrative SME capital market for everyone. Today, investments in SME debt are profitable, relatively safe, and yet not easy to get engaged into. Debitum Network will directly face and solve this problem.