Borderless SME business financing
Debitum Network is an innovative hybrid ecosystem for small business financing - utilizing Ethereum blockchain based process together with principal and interest moved using fiat. This ecosystem based on decentralized and motivated communities brings together SME borrowers, local and regional risk assessors, debt collectors, insurers as well as global investors with interconnected trust-based smart contracts.
Three main pillars of the ecosystem
Debitum Network is based on three important pillars that ensure its uniqueness, disruptiveness as well as will ensure positive results on smalling the credit gap:
- True decentralization
As Debitum Network is initial market maker and facilitator for solving worldwide credit gap by connecting SMEs with global investors who can rely on service provided by local or regional counterparties, i.e., verification, risk assessment, insurance, debt collection. It is possible to attract global investors to distribute their available capital as well as attract SMEs to borrow and finance their growth; however, to make the whole ecosystem truly decentralized, global and self sustainable service providers will be organized in ‘communities’.
- Setting up a community
Debitum Network provides an implementation of Community trust arbitrage smart contract. Community leader may order implementation of Community trust arbitrage smart contract from Debitum Network Trust Arbitrage smart contract factory. Community is listed on Debitum Network portal if and only if Community’s trust arbitrage smart contract passes audit
- Feedback management
Community and community leader must take responsibility for ensuring that provided service from their members is appropriate and performed on decent level of quality. Otherwise they must ensure the underperforming counterparty improves or is removed from the community. If service requestor (borrower or investor) won’t get any follow up actions from particular community, it will be possible to register feedback with Debitum Network Trust Arbitrage. It will investigate if community actions were sufficient. If not, Debitum Network Trust Arbitrage may take a pre-designed action, i.e., use counterparty’s frozen Debitum tokens to compensate feedback provider, manually drop rating for the counterparty or its community, or even ban the counterparty or its entire community from Debitum Network.