How is Debita solving the problem?
Historically, many small and medium-sized enterprises (SMEs) have found private debt markets inaccessible due to complexity, high costs, and lengthy timelines. We address these challenges by integrating artificial intelligence (AI), distributed ledger technology (DLT), and smart contracts into a single platform. This approach reduces complexity, costs, and issuance times while enabling the creation of high-quality, risk-adjusted tokenized debt instruments aligned with institutional standards.
1. Streamlined structuring with Pabblo (BETA)
Pabblo, our AI-powered structuring assistant, automates the design and preparation of private debt issuances in several key ways:
Customized bond terms By analyzing both financial and non-financial data, Pabblo tailors bond terms to each SME’s specific requirements.
Automated documentation Core materials such as the private placement memorandum (PPM) are automatically generated and adapted for each issuance.
Reduced complexity and cost This lowers barriers so smaller enterprises can more efficiently access private debt markets.
2. Tokenization and smart contracts: efficiency, automation, and transparency
We combine tokenization with automated smart contracts to modernize issuance, settlement, and bond management processes:
Near-instant settlement By leveraging DLT, we enable same-day (T+0) or near-instant settlement, shortening procedural delays and unlocking liquidity.
Fractional ownership and fewer intermediaries Flexible investment sizes and fewer third parties help significantly reduce overall issuance costs.
Automated payment execution Smart contracts automatically handle coupon and principal payments, minimizing manual errors and enhancing investor confidence.
Real-time tracking Issuers and investors both gain a transparent, up-to-date view of debt instrument performance.
3. Enhanced credit-risk analysis powered by Wiserfunding
Robust credit-risk assessment underpins sustainable private debt markets. Through our partnership with Wiserfunding and its SME-Z Score methodology, we deliver detailed insights into borrower creditworthiness and risk:
Advanced scoring models The SME-Z Score incorporates both financial and non-financial data to gauge default probabilities and repayment capacity. This covers solvency, liquidity, sector factors, governance quality, and macroeconomic conditions.
Continuous monitoring Dynamic tools track operational and financial indicators over time, enabling real-time risk adjustments and proactive risk management.
Institutional-grade standards Wiserfunding’s methodologies align with globally recognized frameworks, ensuring high transparency, detailed data-driven evaluations, and adaptability across different regions and industries.
4. Standardization and high-quality issuances
Our platform delivers consistent, well-structured issuances that meet institutional expectations:
Strict quality controls We maintain transparency and reliability through robust documentation, governance protocols, and regulatory compliance.
Scalable model The streamlined approach can be replicated across multiple industries and jurisdictions, further promoting liquidity in private debt markets.
By integrating AI, DLT, and smart contracts into a unified ecosystem—and reinforcing it with institutional-grade risk analysis—we reduce the cost, time, and complexity of issuing private debt. This ultimately paves the way for more SMEs to access quality funding, while providing investors with transparent, risk-adjusted opportunities.
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