A representative from SMBX shot me a message because my foodservice business is in a building full of food startups and a lot of us are kind of at the point where we need to expand. Good timing I guess.
Here's their site: https://thesmbx.com
Basically, they facilitate the issuance of bonds to community investors (across the country and locally) in order to fill whatever funding you want. It sounds similar to gofundme in the sense that you build a pitch video, provide materials, and then sling a link around, but the contributors actually get a return on their investment of something like 7 to 11%
Looking at current SBA loan rates, we will have a tough time getting anything lower than 7 or 7.5%, and we'll have to put up collateral (house) to get funding. SMBX isn't asking for that. It sounds like the risk is put a little more in the hands of the investors.
SMBX gets a check from us each month and they distribute it to the investors.
All I've been able to find on the company is from the investor side: How people like what the platform promises. How it's easy. How the returns are good.
Has anyone funded their business using this or a similar platform? What was it like?
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