Rabobank, Nxchange launch alternative funding platform for SMEs

The new service combines a bank loan provided by Rabobank with funding from private investors through the integrated stock exchange of Nxchange.

Rabo&Crowd enables medium-sized enterprises to attract funding by issuing tradeable bonds from out of its own web environment. Investors can buy and sell these bonds on the secondary market after issuance. Currently at the pilot stage, Rabo&Crowd will be further refined and upgraded with the input of early adopters and investors.

Investors can join the Rabo&Crowd community for as little as EUR 100, investing in businesses by purchasing bonds on the integrated Nxchange stock exchange. Subject to market demand, the bonds can be traded on the integrated Nxchange stock exchange before the expiration date, which is attractive for both SMEs and investors. Businesses can issue both short-term and long-term bond loans, while investors can sell bonds before the expiration date.

Businesses who have applied for funding through Rabo&Crowd – the minimum application amount is EUR 200,000 – are assigned a Rabo&Crowd coach who manages the application process. Once the application is approved, the coach also helps set up an online campaign to attract investors through the integrated Nxchange stock exchange. The market exposure this generates also allows businesses to attract ambassadors and potential new customers.

The first company looking to raise funds through Rabo&Crowd and Nxchange is Billink, which specializes in payment solutions for online retailers that allow consumers and businesses to make purchases on credit.