What are the processes of issuing Crowdfunding Bonds

There are 4 steps in Crowdfunding Bonds process

Step 1: Application and credit assessment

Company applies on PeerPower platform 

  • proposal to raise funds i.e., business expansion, working capital, debt consolidation
  • upload documents for credit assessment

After PeerPower assess the company for credit-worthiness and assigns a credit grade then the company must agree to proposed credit grade and terms to proceed

Step 2: Subscribing to a Crowdfunding Bond

Once the Company agrees to credit grade and terms, PeerPower will list the Crowdfunding Bond campaign on the platform. Investors can review the Crowdfunding Bond prospectus before investing. When investors subscribe to Crowdfunding bonds, investors must transfer funds within 48 hours of subscribing to a Crowdfunding Bond, these funds are held by a custodian on behalf of the investor. Crowdfunding Bonds are issued when it is fully funded, if the subscription is not fully funded, investors will receive a refund of the subscription amount  

Step 3: Issuing Crowdfunding Bond Certificate 

The company reviews Crowdfunding Bond subscriptions and sign Rights and Duties of Issuer and Bondholders. At this time, funds are transferred from the custodian to the company  

Step 4: Ongoing obligations by Bond Issuer PeerPower maintains the Bond Registry on behalf of the company (the Bond Issuer) and tracks repayments to Investors over the duration of the Crowdfunding Bonds