There are 3 types of beneficiaries of Debitum Network - small and medium enterprises (SMEs) which need capital, funds or individuals seeking to allocate their capital and various service providers.
Today there are are a lot of investment funds, high net-worth individuals, family offices and similar players in the market who are searching how to diversify their investments and where to deploy excess capital. They struggle to do it safely because they lack global (or even local) lending/investing infrastructure.
Various service providers (risk assessment, provision/collateral valuation, verification, insurance, bad debt collection) are also fragmented and working on small scale serving some fragments of the market using different methodologies. Low demand for their services order quantity doesn’t allow them to raise their expertise to the suitable level.
The current credit gap for small businesses is enormous (up to trillion worldwide). That means they are willing to borrow, pay for it and confirm they are creditworthy, however financing is just not there. It is the result of banks’ limited willingness to get to know smaller businesses and inability of alternative financiers to overcome the geographical fragmentation and lack of infrastructure.
Let’s add Debitum Network to this picture. Our solution will create a new asset class and possibility to invest in global SME loan market by providing suitable infrastructure to do that. This infrastructure and trust of it will be ensured by various service providers and blockchain solutions. Many different experts will have opportunity to participate in global financing market by proposing professional services at large scale. And finally, small businesses will get the necessary capital for growth.
Why have these problems not been solved in the past?
In the past there were no technical solutions and no global infrastructure which would address this problem in an effective and trustful way. Banks and other financial institutions were not interested in funding SMEs as it was considered to be unattractive and cost ineffective area of business. Currently, with blockchain, crypto and emerging fintech technologies, the problem might finally receive an explicit and transparent solution.