Mini-Bonds  are debt instruments typically issued by a company to a wide number of investors in order to enable a company to raise money.

 

The principal amount of the bond is repayable to the bondholder after a set period of time and, prior to repayment, the bond will also attract a specified amount of interest, paid to the investors on an agreed basis.

 

Bond isuance can be suited to a wide range of businesses, but would typically exhibit the following traits:

 

- strong board / management team

- good track record

- strong financial management

- good reason / story for raising the money

- ability for investors to understand the business

- ability to show that interest and capital repayments can be met

- usually a well established business

- works very well where a business has a database of members / customers