What are the differences between Crowdfunding bonds and corporate bonds?

Crowdfunding bonds and corporate bonds are similar and different in the following ways: 

Differences 

1. Shorter investment period. Crowdfunding bonds tend to have a shorter maturity compared to corporate  

    bonds. PeerPower offers Crowdfunding bonds with an investment period between 1 to 36 months.

2. Higher interest rates. Crowdfunding bonds on PeerPower platform generally offer a higher interest rate compared to     

    corporate bonds. However, crowdfunding bonds can also carry higher investment risks. Size of issuer. 

3.  While corporate bonds are issued by big corporates and public companies, Crowdfunding bond issuers are usually            mid-caps or smaller businesses.

4. Repayment options.Some of the Crowdfunding bonds on PeerPower platform have amortization repayment, while other 

    have bullet repayment. Investors can choose to invest in the bonds with repayment method that suits their preference. 

5. An individual can become a Crowdfunding investor by registering with PeerPower and identifying themselves online         

    through the e-KYC system. 

6. The minimum amount of investment is 20,000 baht. 

7. Currently there is no secondary market for Crowdfunding bonds on PeerPower platform. This is different from other 

    bonds sold in public markets which has the primary market in the stock market, and secondary market which allow 

    trading between investors. 

Similarities 

1. One of the repayment methods of PeerPower Crowdfunding bonds is bullet repayment, which is similar to corporate 

    bonds. 

2. PeerPower Crowdfunding bonds are also given credit ratings of A/B/C/D. Ratings are assessed by PeerPower specialists.