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Funding for SMEs on the blockchain is about to become a possibility (Photo by Omar Marques / SOPA Images / LightRocket via Getty Images)
What to do when you is refused finance? Start your bank.
Of course, things are never so simple but with blockchain expansion, it was a logical step for an SME in Lithuania owned by Martin Liberts and Donatas Juodelis [19659003] There are a multitude of sayings about the situation in which the couple found themselves in 2012.
"Stuck between a rock and a hard place", "Catch22" or simply the old "I can not do well for to hurt "It was like they felt when their software company needed to scale quickly for a new project, for as long as it tramped over water waiting for a big payment from a major company. The standard 3-month payment terms almost have paralyzed the company, and with the banks refused to lend and finance from other outlets, it became a result only to pay the salary of the staff.
Liberts said:
In 2012, we were in the middle of developing two large-scale IT projects. At that time, we had the opportunity to start working on two more. However, this required much higher daily funding, as our team had to be doubled for this. After downloading our accounts, borrowed from friends and relatives and refused the loan from traditional financial institutions, we were forced to sell most of our company's shares to grow our successful IT service business. This feeling of having to tell your staff that this is over, even if they did an incredible job, made us realize that business owners should not be forced to make this kind of decision just because they have less access to finance.
Merged from the injustice of all this, the two started to create a solution for both problems together with Justas Šaltinis. First, a company that would lend on the condition of the invoice, ensuring that the payment was timely while waiting for the original terms to be met. And secondly, a lending platform for small businesses that aims to overcome the current financial model of banks and high-interest outlets over the next 5 years.
This bold outlet is called Debitum and is set for launch on 3 September after a successful ICO that raised $ 17 million
Why is it necessary?
According to some estimates, banks reject more than 50% of loan applications from small and medium-sized enterprises (SMEs). In developing economies, the picture is even worse: a 2017 World Bank report estimates that 70% of small, medium and micro businesses are not able to access the credit they need.
Even for those lucky enough to have their loans approved, the outdated practices of traditional banks can mean a mountain of paperwork and burdensome requirements that leave entrepreneurs less time to do what they do best: manage their business.
Slow approval times and conservative stance risk are two further reasons why small business owners are turning their backs on conventional banks and opting for the convenience, speed and flexibility of alternative finance (AF).
Last year in the UK, for example, loans to companies via AF rose 43% year on year. Recent data from the World Bank estimate that the global alternative finance market for small businesses could reach 90 billion dollars in 2020, from the current figure of 34 billion dollars
How will it work? [19659003] Based on blockchain, Debitum has amassed an impressive community of 30,000 users who will benefit from its initial capital hoping to increase to € 10 million by the end of the year. It has already announced partnerships with a number of alternative institutional borrowers in the Baltic region, including DEBIFO, Credital and Monify, which work with the financing of invoices and with regular loans to businesses. Other partners include Finpass, a KYC / AML solution provider for potential lenders (investors) and Scorify, which releases automatic scores to all potential loans on the Debitum platform.
Abra 1.0 will attract EUR or USD investors who are exploring more attractive investment opportunities and cryptocurrency investors who are exploring options to invest a portion of their volatile capital in more stable financial instruments such as loans to SMEs, as well as receiving returns from interests on their cryptocurrencies.
In the meantime, groups of borrowers envisage institutional borrowers, such as sales and professional associations, which can provide a broader channel of potential borrowers, while at the same time conducting an initial screening. While it also attracts small and medium-sized businesses that need larger tickets that want to apply directly through the platform.
A cult following
The idea of a borderless loan system has already attracted the attention of YouTube filmmakers, New Kids On The Blockchain . In a documentary film produced by NKOTBC, they will cover the increase and the possible fall of the ICO. Debitum is part of a group of companies that directors have followed since the ICO boom, and will represent the company as a subway story, as it is an ICO that has delivered a product and is on track to reach its aims.
The documentary is in production from the beginning of 2017 and, in addition to involving the influential people "from within" the crypt world, will cover the encryption, the possible transition to security token offers (STO) and take a close look at the countries that are embracing crypts like Lithuania, Malta, South Korea and Gibraltar.
Small print
Unlike other P2P lenders, Debitum Network will focus on small businesses that use blockchain technology to automate its processes. The transactions are carried out in fiat currency, an alternative commodity to money, making it accessible to small inexperienced traders in the cryptocurrency market.
The removal of fixed costs means that the company can offer significantly lower commissions to borrowers with faster processing time – sometimes less than an hour.
While commercial bank loans often have a maturity of 1 to 5 years, Debitum undertakes to offer shorter payback times of 2 to 6 months, providing businesses with timely injections of money when they need it.
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Funding for SMEs on the blockchain is about to become a possibility (Photo by Omar Marques / Images SOPA / LightRocket through Getty Images)
What to do when you are refused finance?
Sure , things are never so simple but with blockchain expansion, it was a logical step for an SME in Lithuania owned by Martin Liberts and Donatas Juodelis.
There are a multitude of sayings about the situation the couple found themselves in 2012.
"Stuck between a stone and a hard place", "Catch22" or simply the old "You can not do well to hurt" was how they felt when the software company needed to Quickly climbing a new project, all the time treading water waiting for a big payment from a large company The standard 3-month payment terms almost paralyzed the company, and with banks that they refused to pres to sell and finance other outlets, it has become a success only to pay the salary of the staff.
Liberts said:
In 2012, we were in the middle of the development of two large-scale IT projects. At that time, we had the opportunity to start working on two more. However, this required much higher daily funding, as our team had to be doubled for this. After downloading our accounts, borrowed from friends and relatives and refused the loan from traditional financial institutions, we were forced to sell most of our company's shares to grow our successful IT service business. This feeling of having to tell your staff that this is over, even if they did an incredible job, made us realize that business owners should not be forced to make this kind of decision just because they have less access to finance. [19659033] Spurred by the injustice of all this, the couple started to create a solution for both problems together with Justas Šaltinis. First, a company that would lend on the condition of the invoice, ensuring that the payment was timely while waiting for the original terms to be met. And secondly, a loan platform for small businesses that aims to overcome the current financial model of banks and points of interest in the next 5 years.
This bold cheeky is called Debitum and will be launched on 3 September after a successful ICO that raised $ 17 million
Why is it necessary?
According to some estimates, banks reject more than 50% of loan applications from small and medium-sized enterprises (SMEs). In developing economies, the picture is even worse: a World Bank report of 2017 estimates that 70% of small, medium and micro businesses are not able to access the credit they need.
Even for those lucky enough to have their loans approved, the outdated practices of traditional banks can mean a mountain of paperwork and burdensome requirements that leave entrepreneurs less time to do what they do best: manage their business .
Slow approval times and a cautious attitude to risk are two further reasons why small business owners are turning their backs on conventional banks and opting for the convenience, speed and flexibility of alternative finance (AF).
The last year in the United Kingdom, for example, the indebtedness of companies through AF increased by 43% per annum year. Recent data from the World Bank estimate that the global alternative finance market for small businesses could reach 90 billion dollars in 2020, from the current figure of 34 billion dollars
How will it work? [19659003] Based on blockchain, Debitum has amassed an impressive community of 30,000 users who will benefit from its initial capital hoping to increase to € 10 million by the end of the year. It has already announced partnerships with a number of alternative institutional borrowers in the Baltic region, including DEBIFO, Credital and Monify, which work with the financing of invoices and with regular loans to businesses. Other partners include Finpass, a KYC / AML solution provider for potential lenders (investors) and Scorify, which releases automatic scores to all potential loans on the Debitum platform.
Abra 1.0 will attract EUR or USD investors who are exploring more attractive investment opportunities and cryptocurrency investors who are exploring options to invest a portion of their volatile capital in more stable financial instruments such as loans to SMEs, as well as receiving returns from interests on their cryptocurrencies.
In the meantime, groups of borrowers envisage institutional borrowers, such as sales and professional associations, which can provide a broader channel of potential borrowers, while at the same time conducting an initial screening. While it also attracts small and medium-sized businesses that need larger tickets that want to apply directly through the platform.
A cult following
The idea of a borderless loan system has already attracted the attention of YouTube directors, New Kids On The Blockchain. In a documentary film produced by NKOTBC, they will cover the increase and the possible fall of the ICO. Debitum is part of a group of companies that directors have followed since the ICO boom, and will represent the company as a subway story, as it is an ICO that has delivered a product and is on track to reach its aims.
The documentary is in production from the beginning of 2017 and, in addition to involving the influential people "from within" the crypt world, will cover the encryption, the possible transition to security token offers (STO) and take a close look at the countries that are embracing crypts like Lithuania, Malta, South Korea and Gibraltar.
Small print
Unlike other P2P lenders, Debitum Network will focus on small businesses that use blockchain technology to automate its processes. The transactions are carried out in fiat currency, an alternative commodity to money, making it accessible to small inexperienced traders in the cryptocurrency market.
The removal of fixed costs means that the company can offer significantly lower commissions to borrowers with faster processing time – sometimes less than an hour.
While commercial bank loans often have a maturity of 1 to 5 years, Debitum undertakes to offer shorter payback times of 2 to 6 months, providing businesses with timely injections of money when they need it.
