HoneyComb Credit is an investment platform that provides access to capital via crowdfunded loans. HoneyComb is a FINRA regulated Funding Portal that utilizes Reg CF, a securities exemption that allows issuers to raise up to $1.07 million in a securities offering.
HoneyComb seeks to help small businesses refinance pricey credit card debt or high-cost loans. Many small businesses struggle to gain access to affordable credit as banks typically do not like to provide SME loans as they are not profitable for the brick and mortar centric operations.
Recently, Honeycomb shared that Clarion River Organics, the first small business on the Honeycomb Credit platform, completed their full loan repayment in just 16 months.
While the offering was small, it was impactful for Clarion, a family farm co-op that borrowed $25,000 from 39 community investors to help them install three greenhouses so that they can grow and sell their organic produce year-round.
According to Honeycomb, investors received an average 8.4% Return on Investment in 16 months.
Unlike most business loans, Honeycomb Credit loans have no prepayment penalty, giving businesses the flexibility to pay their community investors back early.
The results are indicative of what is possible for platforms that facilitate online capital formation for issuers seeking millions of dollars or less than $100,000.
Honeycomb is establishing itself as a bank replacement Fintech for small businesses in need of credit while providing investors access to vetted investment opportunities. Honeycomb is taking “shop local, invest local” approach to investment crowdfunding.
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