We provide a range of alternative business funding solutions.
We administer the preparation and delivery of Bond certificates for our Subscribers and their clients.
Banks no longer the right tool for financing SME’s
Small to medium sized enterprises (SME’s) are an essential part of the economy, it’s where innovation, growth and job creation come from. However, SME’s are facing huge challenges in terms of funding, banks have come under the increasing pressure of *Basel III. lending has tightened, and businesses have seen their traditional source of funding dry up.
Since 2008 Global Financial Crisis, the implementation of *Basel III, the (Australian) Hayne Royal Commission into the banks and more recently the Global Corona Virus pandemic, the SME financing framework has changed dramatically! Bank lending to SME’s has been shrinking and will reduce further.
*Basel III is a comprehensive set of banking reform measures, developed by the (global) Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector and was developed in response to deficiencies in financial regulation revealed by the global financial crisis of 2008.
Credit Easing & SME Bonds
SME Bonds offer an innovative instrument that is simple and cost-effective. It enables start-ups and early stage companies as well as established businesses to source funding.
Even with the current low interest rate environment, the strict prudential (bricks & mortar) requirements of the Banks on business lending make it impossible to borrow on the merits of the business alone.”
SME’s can issue Bonds too!
You might have noticed that during the Covid-19 pandemic, governments around the world have been creating $billions in new cash through the issue and sale of Treasury Bonds to help prop up the economy.
Just as governments can issue Treasury Bonds and large companies can issue Corporate Bonds, sole traders and smaller companies also can issue SME Bonds to raise funds for business innovation, development or expansion, or to acquire another business.
What is a Small Business Bond?
A Small Business Bond or SME Bond is a type of debt security that is issued by a business and sold to investors. The backing for the bond is generally the ability of the business to repay.
A Bond is a written promise, legally enforceable, to pay on demand, or on one or more specified dates, a specified sum and sets forth the terms and conditions of the loan arrangement between a lender and the borrower.
How Money is Created
Meet the Founder
The founder, Anthony Puls, has had over 40-years experience in raising funds for SME’s and and holds a wealth of information on the subject. He is recognised as one of the founding fathers of crowdfunding globally. See: SME Bonds launched.
In 2013 he was invited to Washington by the Securities and Exchange Commission to help with the development of crowdfunding regulations as part of President Obama’s Jobs Act initiative. See World Bank report – pages 18 & 46 where it references ASSOB as being the World’s most successful equity crowdfunding platform.
Anthony was founding Chairman of the Australian Small Scale Offerings Board Limited (ASSOB), one of the World’s first equity-based crowdfunding platforms which raised in excess of $150 million for over 300 start-ups and early stage businesses before retiring from that role in 2015. He has since advised the Australian Government on developing a legislative framework to allow equity-based crowdfunding. In 2016 he was granted a life member of the Crowdfunding Institute of Australia (CFIA).
Can you Consult to Business?
The Financial Services sector will continue to grow and provide new opportunities throughout 2021 and beyond. Our Subscriber training will enable you to start your own side-line consulting business earning fees and commissions providing financial intermediary services to small business owners and entrepreneurs in your area.
Subscribing to Vendor Bonds will also help those interested in business broking, or the buying and selling of distressed (but viable) businesses for profit.
Alternative Business Finance for Entrepreneurs & Innovators
Remember, wealth is created by solving problems. If you solve a million-dollar problem, it will make you millions!