Rabobank combines bond trading and bank loans for SME business financing

Rabobank combines bond trading and bank loans for SME business financing

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.

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