Small business financing
(also referred to as startup financing or franchise financing) refers to the
means by which an aspiring or current business owner obtains money to start a
new small business, purchase an existing small business or bring money into an
existing small business to finance current or future business activity. There
are many ways to finance a new or existing business, each of which features its
own benefits and limitations. In the wake of the financial crisis of 2007–08,
the availability of traditional types of small business financing dramatically
decreased. At the same time, alternative types of
small business financing have emerged. In this context, it is instructive to
divide the types of small business financing into the two broad categories of
traditional and alternative small business financing options.
The
principal advantages of borrowing funds to finance a new or existing small
business are typically that the lender will not have any say in how the
business is managed and will not be entitled to any of the profits that the
business generates. The disadvantages are the payments may be especially
burdensome for businesses that are new or expanding.
·
Failure to
make required loan payments will risk forfeiture of assets (including possibly
personal assets of the business owners) that are pledged as security for the
loan.
·
The credit
approval process may result in some aspiring or existing business owners not
qualifying for financing or only qualifying for high interest loans or loans
that require the pledge of personal assets as collateral. In addition, the time
required to obtain credit approval may be significant.
·
Excessive
debt may overwhelm the business and ultimately risks bankruptcy. For example, a
business that carries a heavy debt burden may face an increased risk of
failure.
Sourced from the World Bank's review, about 70% of small
to medium-sized enterprises (SMEs) have difficulty in obtaining loans or credit
markets. At the same time, the potential of small and medium enterprises (SMEs)
is the most promising for the public and investors share owners. Among industry
experts, small and medium enterprises are categorized as a world problem to be
resolved. The total turnover of the SME world reaches half of gross domestic
product income in developing countries.
Debitum Network is designed to unite borrowers
and those who help them apply: investors (lenders), risk assessors, document
validators, insurers, etc.Companies or individual professionals who work in the
alternative finance space can connect-in to the network for free and
immediately begin facilitating cross-border deals.All actions are processed
through the Ethereum Blockchain, making Debitum Network a secure and
incorruptible infrastructure. It’s made up of an Ethereum-based family of smart
contracts, facilitated by one internal means of payment.
Transactions run through Fiat currencies, ensuring businesses can
actually use the service easily in their locality, and from day one.Based on
DEB token usage within its lifetime for each loan, total needed to buy DEB
tokens will surpass total ability to sell DEB tokens, thus creating upward
pressure on DEB token price.
How it works
Solution - Network Debitum
Lending money is all about trust and mechanical gears like collateral, measurable reputation, and fear of punishment. However, to address the global credit gap we must mostly operate in young countries where business confidence is not granted. By using a trust-based blockchain solution the Network Debitum ensures the trust required for all partners, especially investors, to operate within the ecosystem.
Lending money is all about trust and mechanical gears like collateral, measurable reputation, and fear of punishment. However, to address the global credit gap we must mostly operate in young countries where business confidence is not granted. By using a trust-based blockchain solution the Network Debitum ensures the trust required for all partners, especially investors, to operate within the ecosystem.
Making the market within the Hybrid platform
As the Network Debitum operates on a three-sided market. The problem of reaching critical users on all sides (borrowers, investors and service providers) is very important.
TRUST-based
Such an approach that measures the level of trust of each party will enable informed decision-making:
Investors will clearly see the level of trust of potential borrowers and will be able to make a decision of vs. confidence. interest rates. Anyone will clearly see the level of trust of other counterparty offering services and will be able to create vs. confidence. price decision service. Communities to see how their members behave individually, allowing organizational decisions based on acquired beliefs or losing the ability to have goal-based information and trust to decide the distribution of available capital to finance SMEs and loans are opportunities that currently do not exist for investors Therefore, the Debitum Network creates a new market, a new asset class that will meet global investor demand, attract their available capital and solve the worldwide credit gap challenge for SMEs.
As the Network Debitum operates on a three-sided market. The problem of reaching critical users on all sides (borrowers, investors and service providers) is very important.
TRUST-based
Such an approach that measures the level of trust of each party will enable informed decision-making:
Investors will clearly see the level of trust of potential borrowers and will be able to make a decision of vs. confidence. interest rates. Anyone will clearly see the level of trust of other counterparty offering services and will be able to create vs. confidence. price decision service. Communities to see how their members behave individually, allowing organizational decisions based on acquired beliefs or losing the ability to have goal-based information and trust to decide the distribution of available capital to finance SMEs and loans are opportunities that currently do not exist for investors Therefore, the Debitum Network creates a new market, a new asset class that will meet global investor demand, attract their available capital and solve the worldwide credit gap challenge for SMEs.
Infrastructure
Debitum Network is a comprehensive middleware with its core running in Ethereal blockchain and a number of gateways ready to incorporate counterparty running other standard distributed applications.
For security purposes, system infrastructure will be public, easily available to everyone, and private, controlled by system administrators, subnets. The adapter will communicate with the ecosystem through load balancers in the public subnet https: //debitum.network
The ultimate goal is to send data to ecosystems on a private subnet. On a personal subnet, EVM for communication with blockchains, will be used. Also, kubernetes cluster where the application, which will communicate with blockchain, and provide data changes intelligent contract status. All infrastructure not supported by Ethereal) will run on the Amazon Web Service infrastructure.
Blockchain proves the existence of content, both related to the borrower and associated with the transaction. A hashed note is used for the current time stamp and transaction status. The main textile system stores metadata to complement versions of documents stored elsewhere, in other special blockchain-based systems. Some fair automation will be applied, provided that it does not force contributors to change their normal legal means. If the etereum ecosystem gets legitimate acceptance, we will enter the appropriate update. Maximum indexing and labeling of data for future data use and machine learning will be applied.
Debitum Network is a comprehensive middleware with its core running in Ethereal blockchain and a number of gateways ready to incorporate counterparty running other standard distributed applications.
For security purposes, system infrastructure will be public, easily available to everyone, and private, controlled by system administrators, subnets. The adapter will communicate with the ecosystem through load balancers in the public subnet https: //debitum.network
The ultimate goal is to send data to ecosystems on a private subnet. On a personal subnet, EVM for communication with blockchains, will be used. Also, kubernetes cluster where the application, which will communicate with blockchain, and provide data changes intelligent contract status. All infrastructure not supported by Ethereal) will run on the Amazon Web Service infrastructure.
Blockchain proves the existence of content, both related to the borrower and associated with the transaction. A hashed note is used for the current time stamp and transaction status. The main textile system stores metadata to complement versions of documents stored elsewhere, in other special blockchain-based systems. Some fair automation will be applied, provided that it does not force contributors to change their normal legal means. If the etereum ecosystem gets legitimate acceptance, we will enter the appropriate update. Maximum indexing and labeling of data for future data use and machine learning will be applied.
For more information plase visit :
Website : https://debitum.network/
Whitepaper :
https://debitum.network/whitepaper
Ann
Thread : https://bitcointalk.org/index.php?topic=2321064.0
Telegram : https://t.me/joinchat/G6KFmURKsu0FIfJetJ3mOA
Telegram : https://t.me/joinchat/G6KFmURKsu0FIfJetJ3mOA
Twitter
: https://twitter.com/DebitumNetwork
Facebook
: http://facebook.com/DebitumNetwork
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