Debitum Network Puts Mobile Payments Principles to Work in Small Business Lending

August 28, 2024         By: Steven Anderson

Small business financing can be one of the toughest catch-22s in the entire business field. A small business more than any other needs the right kind of cash flow to live. But lending—the option that most commonly keeps cash flow stable between those times of feast and famine—is the option most often unavailable to the small business. It’s hard to blame lenders here, but the end result is the same. Enter Debitum Network, who recently dropped word our way about its upcoming plans to make lending a much easier proposition for small business

Debitum also has a unique point going for it: the payback period on its loans. While many bank loans run one to five years, Debitum wants its loans paid off in two to six months, which means it’s good for the business which has outstanding invoices, but those invoices had better get paid in short order. Plus, Debitum can make its loans quickly, sometimes taking an hour to make a decision for or against a potential borrower.

Given that banks reject over half of loan applications from small and medium-sized businesses annually, according to some estimates, it makes it clear there’s a market for this sort of thing, and Debitum may be in a good position to step in. Small businesses do often have trouble with businesses repaying invoices—some can take months to settle up, a point that leaves small businesses in a bad position—so a measure like this should find some eager takers, at least until those small businesses get enough cash reserve behind them to weather a slow-paying client.

Getting a loan as a small business is a tall order, but Debitum may be able to make it a little easier. Considering how many small businesses are out there, it should be able to do quite well in the field.