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Debitum Network provides an easy way for businesses to borrow and invest globally. Below is our recent interview with Mantas Povelauskas, CMO at Debitum Network:
Q: Could you provide our readers with a brief introduction to Debitum Network?
A: Essentially, Debitum Network is a marketplace where SMEs that need capital can create assets (loans) and Investors can invest into those assets. An asset is essentially the amount that is being borrowed, for how long and details about the company. Investors then can go through the list of available assets see the risk score, trust score, interest rate and select the assets that fit his investment needs.
Q: How did you come up to the idea for Debitum Network?
A: A while back in one of the previous companies we faced short-term cashflow issues. We needed a bit of capital to sustain us for the next 4 months. Bank and financial institution procedures were too long or our business profile did not fit their strict policy. It was a stressful and frustrating process where instead of focusing on the business we had to direct all of our energy towards finding capital. In the end, we managed to secure a few private investments, but the whole process taught us just how badly underfinanced are small businesses. And it’s not the lack of capital, there are businesses out there that would like to invest short-term (1-6 months) into other business and earn interest as well as help other businesses succeed. Its the lack of infrastructure or an easy way to do this. Currently, it’s complicated and requires expertise in legal, investing, financial risk management that most small businesses do not typically employ. This is where we want to bridge the gap and enable any business to invest and get investments.
Q: What are the key advantages of Debitum Network?
A: Simplicity and globality. Debitum Network simplifies the whole borrowing and investing process by providing infrastructure and 3rd party services. Each borrower or lender on the platform will have their own individual wallet and balance, this enables them to do transactions directly on the platform and transfer of funds happens fast. Think a few minutes for funds to be delivered from a business in Hong Kong to a business in Brasil. 3rd party services is a core functionality that makes the platform great. 3rd party services like risk assessment, insurance, debt collection will be performed by independent parties, which means that anyone can enter assets and investors get to select the risk that they tolerate when investing.
Q: Tell us more about DEB tokens and their role on your platform.
A: Financial services are typically centralized. This stems from having necessary capabilities in-house or distrusting other parties service quality. Decentralization opens the capabilities for 3rd party services which is fundamental in providing high-quality risk assessment, insurance or debt collection. We believe this is fundamental for connecting borrowers and investors across the global market.
Q: Why is there a necessity for decentralization?
A: Financial services are typically centralized. This typically stems from having capabilities in-house or distrust in other parties service quality as it is directly connected to money. Decentralization opens up the capabilities for 3rd party services which is fundamental in providing high-quality risk assessment, insurance. We believe this is fundamental for connecting borrowers and investors across the global market.
Q: What is on the roadmap for Debitum Network moving forward?
A: “Debitum Network 1.0 Abra” platform goes live 2018 September. We are excited after a year of development to present the platform to our early customers. The platform launch event is scheduled for the 1st week of September in London.
We already working on Debitum Network 2.0 which is scheduled for late Q4 2018, Early Q1 2019. Which will bring even more functionality in the platform and should become more easily accessible?
2019 is planned to be a strategic expansion year, where will use our best practices to enter new markets and we hope to cover the EU and Eurocurrency markets.