Honeycomb Credit launches Loyalty Bonds for small businesses
Last updated 4/28/2020 at 11:52am
Honeycomb Credit has announced a new product for small businesses that offers debt free capital in the form of ”Loyalty Bonds.”
Loyalty Bonds enable small businesses to raise cash quickly by selling gift card subscriptions that will keep customers coming back for years to come. The customer receives a gift card worth 1.3x their contribution, and will receive their gift card in four equal installments every six months over the course of two years. By creating a centralized market for these gift card bonds, customers can infuse cash into their favorite business now, and treat themselves to the rewards beginning in six months.
Small Businesses can easily start a Loyalty Bond campaign, and it can be up and running in as little as 24 hours. The minimum campaign amount is $3,000, and there is no maximum. The only requirements are at least one year of operating history, a strong social media and/or email following, and a physical or online shop that accepts gift cards. There is no credit check or financial review.
Loyalty Bond campaigns are now live for three businesses: Simply Elegant Catering in Cleveland OH, Status Grooming Excellence in Pittsburgh PA, and Pawcasso in Long Island NY.
“Purchasing gift cards can be a great way to support small businesses right now, but unfortunately as businesses reopen if all of their customers come back shopping with gift cards, businesses risk a cash flow catastrophe. The Loyalty Bond program solves for this problem while ensuring that customers will keep coming back for years to come. Businesses win with money to help them weather the storm, and contributors win with a great bargain at their favorite small businesses,” Honeycomb CEO George Cook explained.
A list of all Loyalty Bond campaigns can be found at: https://loyalty.honeycombcredit.com/
Small Businesses who are interested in learning more about how to start a campaign can visit http://www.honeycombcredit.com/loyalty
Honeycomb Credit is a Pittsburgh-based investment crowdfunding website that connects small businesses looking for expansion loans with community members who want to invest locally.