Very soon, Susan, who runs a small dry cleaning shop in Bangkok,
will find herself engaged in a small conversation with a client,
hoping to distract herself from the boredom of her day.
“It was, like, the whitest and softest shirt of my life, the one I
cleaned here” the client tells her happily.
“I will recommend your place to our administrative director.”
Soon enough, Susan is looking at a copy of the massive
outstanding invoice of hers, the order behind it being from
the entire corps diplomatique, ten times beyond her current
capacity. The money is hers but not quite yet — she must wait
for up to 120 days. She neither has the working capital needed
at the moment nor a lack of willpower to keep the client by all
Perhaps she could use some traditional extended overdraft,
but to get financing, businesses often have to struggle through
an inadequate ‘presumption of guilt’ with ‘judges’ [salaried
non-entrepreneurs] unwilling to listen. Good borrowers are
in a position to prove that two plus two isn’t five and remain
unfinanced, albeit the whole point for institutional financiers
to exist in this fundamentally inflationary economy is to ensure
the maximum circulation of capital. While alternative financing
channels have emerged as a necessary measure, effective
international marketplaces and transparent pledge security
registries have not been developed.
“When I work hard, when my clients respect me and
I receive large orders from them, the idea that my
business has problems with accountability sends me
into angry fits,” Susan told a friend of hers, Mario.
He shared an idea with Susan: large businesses spend a lot of
money trying to predict the eventual cost of capital and the
cash flow, but you should use the power of an open market—
Debitum. In a matter of minutes, Susan turns her invoice in and
receives her funding while associated interest and charges start
travelling as a cryptocurrency that is liquidly trading in pairs to
major fiat and cryptocurrencies. Thus, the market tariffs her
on the prediction of when the client will pay and provides the
money immediately. The open-source, distributed network of
hundreds of local debt validators and millions of global loan
providers quickly makes up a customized offer for Susan.
Mario was the right guy to ask because back in his days of glory,
having him on vacation seemed too stressful for the entire
domestic financial community. When he was on leave from his
office at the Anti-Fraud Dept., financiers could expect bizarre
and disturbing developmentsto occur at any moment. Picture
this: a local exporter issues a large invoice to a foreign buyer and
offers it to several invoice financing firms, receiving funds from
at least three and cashing in 0.8×3=2.4 of the invoice sum. While
one financier later receives the payment from the buyer, others
don’t. As the exporter goes bankrupt, the question arises: who
has secured the buyer’s payment in the first place? The financier
who’s got the money is in trouble too, because the other firm
has secured the receivable with tax authorities and has the real
case to claim. What makes it even worse is that the buyer makes
a mistake and double-pays upon the same invoice to the seller.
Not to mention the buyer never gets his goodsdelivered.
The gallows humor of this story is that a person like Mario has
never existed to prevent frauds, nor is he around to advise a yet
inexistent but highly demanded service like Debitum.