Debitum Network Tests Blockchain Financing Tech

With only days to go before its official launch, Debitum Network is demonstrating its blockchain-powered small business financing solution.

The company issued a press release Monday (Aug. 27), revealing tests completed in front of members of the crypto community at the Blockchain Centre Vilnius. The company plans to launch its offering on Sept. 3.

Debitum emphasized that it is not looking to compete directly with traditional financial service providers, but rather to enhance the existing small business finance market.

“We do not consider other FinTech startups or traditional banks to be our competitors,” said Debitum co-founder Martins Liberts. “We invite them to partner with us and hope to create a better future for SMEs together. All of us work towards the same goal — to allow entrepreneurs to be in charge of their companies and get the funds they need in a timely manner.”

Lithuanian Vice Minister of Economy and Innovation Elijus Čivilis was also at the event and remarked on the importance of solutions addressing the issue of small businesses’ access to finance.

“The SME funding gap is a global problem,” said Čivilis. “In such countries as Lithuania, where small enterprises are the main economy drivers, projects like Debitum Network are crucial.”

According to reports, Debitum Network raised $18 million in an initial coin offering (ICO) crowdsale earlier this year. The company offers its proprietary coin to investors that can choose which type of loan product to finance, and deposit their investments on the Debitum platform.

The company will also look to connect with third-party service providers that want to participate in the small business financing process, including debt collection and insurance companies.

Debitum will join a growing list of FinTechs using blockchain to disrupt and ease friction of small business financing, including Populus, which launched in the U.K. last year.