Debitum what is it
According to statistics, approximately 70% of medium-sized and lower enterprises lack access to credit. This creates serious obstacles to their normal development. The World Bank issued a review stating that the total cash deficit exceeded $ 2 trillion.
There are two reasons for this phenomenon. The first is an outdated policy pursued by credit and financial organizations, the second is an insufficient level of financial literacy of entrepreneurs themselves. Banks often arrange the provision of loans with a huge number of difficult (or even impossible for small businesses) conditions, because they do not want to finance any risky projects, startups, etc. And business owners often themselves worsen their credit history, and, accordingly, their financial reputation, when they violate the terms of repayment of loans taken earlier or simply irrationally dispose of the funds provided by investors.
But since the lack of free liquidity is taking place and is growing, inevitably there is a demand for alternative financing. And after the demand, there was an offer. Now this sphere is developing rapidly and, according to experts’ forecasts, by 2020 it will reach the level of $ 90 million, that is, it will more than double as compared with today’s $ 34 million.
The main purpose of the Debitum network is to reduce the gap and remove obstacles between credit sources and their consumers, and the use of smart contracts of blockchain technology provides it with transparency and objectivity. It is assumed that all participants in the lending process, such as borrowers, lenders, risk experts, insurers, etc. Unite in a single system. Organizations and specialists working in the field of alternative financing will have the opportunity to expand their supply market through a free connection to the system.
The three main principles of Debitum:
- Decentralization and global.
- Stable feedback through the system of chats, reviews, etc.
- The simultaneous use of cryptocurrencies and traditional means of payment, when the digital currency will be mainly used for internal financing of the system, and all external settlements and payments will be carried out by traditional means.
The basis for Debitum
It is important that the Debitum network is not organized from scratch. The basis for it became two quite successful companies.
Debifo, a startup launched in 2015, has become one of the main platforms for innovative financing of SMEs. At the end of 2016, the prize “financial services of the year” was awarded. Since the beginning of work, 25 million euros have passed through it, and 3 million euros are in the current portfolio.
“Inntec” is one of the most innovative and successful Northern European IT companies, it provides services of impeccable quality. Among her clients there are government bodies and services. The total duration of the projects reached 195,000 hours, and the average length of service for employees is 6.5 years.
It turns out that the developers can only establish financing through the ICO, and calmly continue development.