Rabobank is partnering with Nxchange to provide small and medium sized business with access to a tradable bond platform for loan financing.
The Rabo&Crowd service combines a bank loan with funding from private investors through the integrated stock exchange of Nxchange. Companies on the platform can issue a bond for investors to buy and sell on the secondary market after issuance.
Investors can join the Rabo&Crowd community for as little as €100, investing in businesses by purchasing bonds over Nxchange. Businesses can issue both short-term and long-term bond loans, while investors can sell bonds before the expiration date. The minimum application amount is €200,000.
Marcel Gerritsen, executive VP strategy & innovation at Rabobank says the service was inspired by the bank's own experience with Rabo&Co, a platform through which high-net-worth individuals can invest substantial amounts in businesses together with Rabobank.
“We’re seeing a growing demand among SMEs for alternative financing solutions," he says. "Rabo&Crowd provides businesses with access to investors through a regulated stock exchange. Rabobank will always provide a portion of the funding by means of a bank loan or credit facility.”
Currently at the pilot stage, the first business on the platform is retail credit provider Billink, which has issued a total of €700,000 worth of bonds.