Be proud of where you invest with small business loans, crowdfunded by you. Honeycomb Credit unlocks growth opportunities for small businesses to build vibrant, financially empowered communities. Earn 5-12%+ interest and get a whole lot more: deeper connections with your community and the businesses you love. The average Honeycomb investment is $1,000, and you can start investing with as little as $100. Small business investing used to be something only available to a select few. Now, anyone can invest!
How you make money
You will own a promissory note of the business that borrowed the money. Kind of like a loan from a bank, they'll make repayments back every month. Except, unlike a bank, all of the repayments will go back to you, the investor. If a business pays on-time, your share of the repayment will be distributed to your bank account every 3 months.
How Honeycomb makes money
Honeycomb charges Stroll LLC a $100 posting fee and a 6.0% loan origination fee on the total amount funded. Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.
Is it safe?
In the event that a business stops making principal and interest repayments required under the Note Purchase Agreement you sign with them, the loan will be considered to be in default. At this time, as an investor, you will have the opportunity to vote on your desired remedy whether that be seeking maximum reimbursement, forgiving all or part of the remaining loan, or some alternative in between. Some loans will be personally guarantied by the business’s ownership and/or have collateral which may be used to recover some investor losses in the event of a default.