Investor FAQs
FAQ institutional investors - DEBITA
Debita is a technology solution designed to help issuers streamline their private debt issuance processes. We are not an exchange, regulated marketplace, or investment advisor. All aspects of the issuance—including regulatory compliance, due diligence, and private, bilateral agreements—are the sole responsibility of the issuer. Offerings on Debita are not public offerings, and investing in private debt involves risks such as potential default or loss. Each investor should carefully consider their own risk tolerance and seek independent professional advice as needed. Debita is not a party to any issuance and assumes no liability for the accuracy of information provided by issuers or for any outcomes related to the issuance process.
What is Debita ?
Debita is a web‑based application that offers an integrated platform that unifies the origination, structuring, servicing and placement of private debt for mid-sized companies and fintechs in Latin America—markets where access to capital is scarce and local banks cannot meet demand. By bringing risk assessment, compliance controls, data-room management, servicing and syndication processes together in one environment, we tangibly streamline workflows that were previously scattered across multiple actors.
Thanks to this standardization, issuers can structure their deals efficiently and reach global investors at a lower operating cost.
Why private credit tokenization is the future (and present)?
Programmable Cash Flows. Smart contracts encode bond terms (coupon rate, payment schedule, covenants). Once deployed, they execute automatically—removing manual errors, reducing servicing costs and ensuring investors are paid precisely on due dates.
24/7 Global Settlement. On‑chain rails bypass geographic cut‑off times and correspondent‑bank layers, enabling near‑instant delivery‑versus‑payment across borders, even on weekends and holidays.
Transparency. Every coupon, principal repayment and secondary‑market transfer is immutably recorded on the public ledger, giving investors, issuers and regulators a shared, tamper‑proof audit trail in real time.
Fractional Ownership & Deeper Liquidity. Tokens can be issued in much smaller denominations than traditional bonds, lowering minimum ticket sizes and opening emerging‑market credit to a broader investor base.
Embedded Compliance. KYC/KYB checks, transfer restrictions and whitelist updates can be enforced directly in the token’s transfer logic, keeping issuances compliant throughout the asset’s life without constant manual monitoring.
Interoperability. Once tokenised, fixed‑income instruments can plug into a growing ecosystem of custodians, analytics tools and lending protocols, enhancing price discovery and collateral utility.
Cost Efficiency. By compressing settlement cycles, reducing reconciliation work and automating corporate‑action processing, tokenisation can shave basis‑points off the all‑in cost of funds for issuers while preserving—or improving—net yield to investor
Why should I as a institutional investor participate in Debita?
Debita gives institutional lenders a turn‑key, no‑strings‑attached way to reach high‑yield private credit in markets that were previously labor‑intensive to access. The platform is free for investors and carries no volume commitments; our business model is a straightforward technology fee paid by each issuer. That means a fund can browse, due‑diligence and deploy at its own pace without lock‑ins or platform charges eating into returns. Every deal listed has already been structured to international best practice—complete data room, perfected collateral, waterfall, local legal opinions and on‑chain servicing—so transaction desks avoid months of bilateral paperwork. Because Debita’s rails drive down fixed origination costs, institutional and professional investors can participate at smaller ticket sizes than a traditional dealwhile still obtaining the same depth of diligence and covenant monitoring. Tokens settle DvP and positions appear in the portfolio dashboard (or via API) in real time, giving risk teams continuous visibility instead of quarterly PDFs. Finally, tokenization turns each loan into abuilding block that can be syndicated or re‑balanced post‑close. Funds can scale exposure up or down, invite co‑investors or slice participations across strategies—all while relying on Debita’s live on‑chain audit trail for servicing and compliance. In short, the platform offers speed, flexibility and transparency with no upfront cost, making it an efficient conduit for yield‑seeking credit funds.
Why SMEs private credit in emerging markets?
According to the IFC, small and medium-sized enterprises (SMEs) account for nearly 90% of businesses worldwide. However, in emerging markets, up to two-thirds of these SMEs face significant challenges in securing the financing they need. This shortfall results in an estimated $5 trillion financing gap.
Under frameworks such as Basel III, banks are required to meet stricter capital and solvency requirements, limiting their ability to lend to segments perceived as higher risk, particularly in volatile economies. This is not due to a lack of willingness on the part of banks but rather regulatory constraints that make lending to SMEs more costly or complex.
For many SMEs, accessing public debt markets or institutional sources of capital is prohibitively expensive and difficult. Credit ratings, extensive financial disclosures, and high liquidity thresholds are often required, excluding smaller companies without the scale or resources to meet these demands.
Investors in private debt often report stable returns, even during periods of economic volatility. Additionally, private debt typically has a low correlation with traditional asset classes—such as publicly traded equities and government bonds—making it a valuable tool for diversifying risk and strengthening portfolio stability.
What types of deal structures are currently supported on Debita?
Debita is structurally agnostic and built to support a range of private credit formats depending on asset type, jurisdiction, and investor preference. Currently, most transactions are structured either as corporate private placements, where investors subscribe to a senior unsecured or secured note issued directly by an operating company, or as asset-based deals, where (i.e) receivables are transferred to a bankruptcy-remote trust or SPV and funded against via senior notes. In both cases, Debita handles onboarding, KYC, documentation execution, compliance monitoring, and payment distribution, standarizing the legal schema. The platform is modular and can accommodate other formats over time, including hybrid or public structures if required.
Why do we see a great opportunity in asset-based deals?
Asset-backed finance (ABF) is already aUS $ 20 trillion marketplace—roughly thirteen times the size of corporate direct-lending—yet fewer than 5 % of those loans are currently funded by private-credit investors. The sweep of collateral is enormous, spanning autos, equipment leases, trade-receivable pools and other cash-flows secured by real assets; importantly, ABF structures have recorded virtually no investment-grade defaults since 2008, according to Moody’s longitudinal data, giving them a risk profile closer to bank paper than to high-yield credit.
Is this a public offer?
No—each deal is a private placement with no general solicitation or public order book; tokens are only issued and transferable between KYC‑approved wallets under the same contractual terms, ensuring the offer remains restricted at all times.
Who can invest?
You must qualify as a professional/qualified investor under your own jurisdiction’s private‑placement rules (e.g., Reg D accredited or Reg S non‑US person in the US, Professional Investor in the EU); this status is represented in the subscription agreement you sign, and your account is only whitelisted after KYC/AML and eligibility checks.
What is the usual size of a deal?
Debita channels transactions ranging from USD 1 million to USD 50 million. In the ABF area, current transactions range from USD 3 million to USD 12 million.
The role of fintech and alternative platforms
Today, fintech solutions and alternative financing platforms are also playing a role in closing the financing gap. These platforms streamline processes like loan origination, risk assessment, and distribution, making it easier for SMEs to access private capital, though their presence remains limited in many emerging markets
Are the tokens securities and how is compliance enforced?
No—the on‑chain token itself does not constitute the security nor grant the legal claim over the assets; those rights arise solely from the privately placed note and the bilateral agreements executed off‑chain between issuer and investor. The token functions as a digital representation/receipt to enable wallet‑to‑wallet settlement, tracking, and automated distributions, while compliance is enforced by limiting minting and transfers to KYC‑whitelisted wallets that are party to the same private‑placement documents.
What exactly am I buying and what stands behind it?
You purchase a privately placed note that is digitally mirrored on‑chain; settlement occurs wallet‑to‑wallet against stablecoin, giving instant DvP and immutable proof of ownership while the legal note off‑chain anchors enforceability
Where do the assets legally sit?
Underlying receivables are transferred via true sale into a bankruptcy‑remote fiduciary trust in the asset’s jurisdiction, with a regulated trustee controlling lock‑box accounts and an international security trustee empowered to act on behalf of all noteholders if enforcement is required.
What level of visibility and control do investors have over collateral monitoring in DEBITA?
DEBITA provides investors with full transparency and real-time oversight of collateral performance. Through the investor dashboard, users can continuously track key metrics such as collateral composition, concentration limits, delinquency, coverage ratios, and buffer levels.
The system is designed to detect early warning signs and automatically trigger alerts or enforce protective actions when predefined thresholds are breached. This automated monitoring framework ensures that investors are always informed and protected, with critical decisions executed instantly—without manual lag—safeguarding the integrity of the structure.
What happens if the structure drifts into default?
Early-warning trigger – Debita tracks delinquency, coverage ratios and covenant tests daily. If a preset limit is breached, the fiduciary trustee issues a default notice and Debita flashes the alert on every investor dashboard. New draws or reinvestments are suspended.
Cash-sweep mode – All incoming payments in the lock-box are diverted straight to principal amortisation; interest accrual stops so the exposure shrinks as the assets self-liquidate. Debita records each sweep in real time, giving investors a clear running total of outstanding balance.
Backup-servicer takeover – If the primary servicer cannot continue, the trustee executes the pre-signed step-in agreement.
Insurance recovery – Eligible assets that turn past due are filed with the trade-credit insurer. Claim submissions, approvals and payouts are tracked through Debita, and proceeds follow the same waterfall to further reduce investor exposure.
Collateral enforcement – Any shortfall left after insurance is addressed by enforcing pledged collateral or reserves under the jurisdiction named in the deal documents. Each enforcement action and recovery distribution is logged on Debita, giving note-holders an end-to-end digital record of the workout.
In corporate loan transactions, a restructuring agent is appointed upfront at closing through a step-in agreement with the security trustee so that, upon any default, it can immediately assume operating control of the loan; paid on a success-based fee (fixed retainer plus a share of recoveries), the agent is empowered to negotiate with senior and junior creditors, propose refinancings or stand-stills, oversee collateral enforcement and coordinate pre-pack administrations or 363-style sales, while Debita records every covenant breach, cash flow and proposal in real time, enabling investors to cast electronic votes within the Intercreditor Agreement timelines and providing an immutable audit trail that speeds decisions and mitigates litigation risk.
Which chains and stablecoins are used?
Debita currently deploys on EVM chains such as Arbitrum and Polygon and uses USDC/EURC/USDT for settlement efficiency, but investors are not required to handle stablecoins directly—funding and distributions can be routed in fiat through regulated third‑party providers/escrow who convert to and from stablecoins behind the scenes, while fiat rails remain available at all times for coupons and redemptions.
Who are our partners for managing funds and tokenized assets?
We work with top tier providers in the field of digital assets (i.e Bitso, Chainlink or Onyze).
Who is currently working with Debita?
On the investor side, more than 15 international private credit funds, development institutions and multilateral organisations access the platform to connect directly with issuers.
On the borrower side, through Debita, we work with large issuers, including some of Spain's top 10 companies, several of the main lenders in Latin America (including factoring, vehicles, loans to SMEs, payroll loans, etc.).
We also have the participation of investment boutiques, structuring agents and corporate banks that use our technology to channel/syndicate operations.
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