What Debitum Network thinks and does regarding coronavirus?
We face a new challenge as we must contain the outbreak of the disease, while still working and ensuring the well-being of people around us.
Businesses, especially SMEs have an important role in the current situation and possibly will have an even larger one after this crisis is over. Hence, we are thankful to everyone who is using the Debitum Network platform and who plans on using it further on.
In our new blog post you may read what Debitum is doing to face the outbreak and protect our employees and investors.
How does coronavirus affect the internal operations at Debitum
As you might have noticed from the quality of the loans provided on our platform, we take risks very seriously. Hence, from the 16th of March, all our team is working remotely from home. We organized a secure connection to our platform for all employees. Our team will be able to connect to the platform remotely via VPN with authentication thus the access will be secured and safe. We are sure that all our daily operations will be held as usual.
Adjusted risk assessment of borrowers and Loan Originators
We have talked with our loan originators about the possible delays on the loans provided via the platform. We believe that the ones operating strictly in the B2B sector might see some delays. If that is to happen we believe in the covenants and our originators’ financial position to be able to ensure buybacks. All LO’s have enough liquidity to ensure buyback if needed. We will switch from quarterly to monthly monitoring of each Loan Originator. We will closely monitor the performance of Loan Originators, their financial covenants in order to ensure the safety of investments.
Some loan originators might actually be better off – Cardec Financing as they collect funds from the Dutch government and Triple Dragon as they finance the mobile game industry that should see a boost while so many people are at home.
How concerned we are in regard to a higher amount of funds being withdrawn
We observed higher withdrawals during the last few days. All withdrawals were transferred to investors’ bank accounts as usual.
We analyzed that some retail users with smaller invested balances withdrew money. All professional investors stayed calm and did not withdraw. This is an expected effect of virus-related panic and stock exchange volatility. We would like to remind all investors that Debitum never chased high returns for investors and always took low credit risk as a priority. Your investments have fixed income and are not dependent on the stock price. They also have a buyback guarantee in case of a loan repayment delay.
We do not expect a shortage of liquidity and delay with withdrawals: all repayments from Loan Originators are transferred to Debitum weekly, thus we have enough liquidity for withdrawals of our users and for new investments.
How we need to react to face the outbreak
Lastly, we fully agree with those who are calling all people to act slowly and not to damage the financial market by unthoughtful actions. We believe that Debitum Network will be an important tool for businesses to access funding and for our users to earn interest, while some other financial instruments might be unstable.
Please also remember: “virus” of panic now is more dangerous than the coronavirus itself. Stay calm and take all possible precautions to contain the outbreak!
Debitum Network team