Look Ma, No Banks. Small Business Bernal Cutlery Shop Issues SMBX Bonds Instead

August 24, 2019 | FinTech

Small businesses getting the go-round from banks now have an alternative: Issue bonds on the SMBX platform

Bernal Cutlery, a well-known cutlery shop in San Francisco, raised $130,000 within two weeks. The company floated a small business bond on SMBX. Analysts say this was the world’s first transaction using these bonds.

SMBX: a meeting place for investors and small businesses (banks not invited)

The firm is a blockchain-powered platform approved by the FINRA as a Reg CF funding platform. It exhorts investors to provide debt-financing to small businesses that may not be able to access loans from banks:

  • Earn the bank’s profits
  • Invest in businesses you know and love
  • Make an impact by directing your money to businesses that share your values

There are no costs for investing, and investors can put in as little as $10.

Bernal Cutlery

The cutlery shop planned to raise $200,000 via bonds yielding in the range of 6-8% and repayable over 120 months. The shop said it will use the funds for a new website, new equipment, new products, and content marketing.

In addition, Bernal Cutlery plans to relocate its San Francisco Mission District store to a much larger premise on Valencia Street.

Finally, SMBX is considering a secondary exchange for the trading of the bonds issued on the main platform.

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