How Crowdfunding bonds work

Modified on Fri, 30 Sep 2022 at 07:11 PM

PeerPower Crowdfunding bonds work much in the same way as corporate bonds, but more tailored to private businesses. As a business owner, when you issue Crowdfunding bonds through our platform, you effectively borrow money from our community of investors. The loan terms as well as interest rates will be fixed. At the end of the bond term, you will return the funds together with interest payment to the investors.   

Crowdfunding bonds are different from corporate bonds sold in the public markets in the following ways: 

  • They are not sold publicly, but only to registered investors through SEC regulated online platforms such as PeerPower. 
  • The process and criteria for issuing a Crowdfunding bonds are more suitable for medium-and-small private businesses, when compared to corporate bonds. 
  • The duration is usually shorter so Crowdfunding bonds tend to be more flexible. PeerPower Crowdfunding bonds have durations ranging from 1 to 36 months. 
  • PeerPower don’t currently have a secondary market for exchanging of Crowdfunding bonds.   

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