Read Entrepreneur's review of the SMBX marketplace. "Real innovation often takes place under the radar. The SMBX is a straightforward way for small and medium-sized businesses to quickly raise capital."
One of the many questions raised during the Covid-19 pandemic is how all of us can support the small businesses in our communities. These businesses are the engine of job growth and they have been the most affected by local, state, and federal mitigation efforts.
That's not exactly why the SMBX was created, but it's a timely use case that showcases the power that community can have in helping support small businesses. SMBX is a platform where crowdfunding meets fintech. It's an interesting concept that has the potential to be a game-changer for the way small businesses approach raising capital.
An Equitable Alternative to an SBA Loan
SMBX is an online marketplace that allows individual investors (that is everyday people like you) to buy small business financial securities. It can be difficult for some small businesses to get a business loan. With SMBX, a small business owner is taking a different route. In this case, they are raising capital from the public. Like a bank loan, the investors provide the local business with the capital they need. The business then pays the investors back with interest. In essence, the investors become the bank.
Investors provide capital to the business of their choice by purchasing small business bonds in increments of $10 at a time. The small business bond is a fixed debt instrument issued at $10 par value that yields principal plus interest on a monthly basis.
The Bottom Line on the SMBX
Real innovation often takes place under the radar. The SMBX is a straightforward way for small and medium-sized businesses to quickly raise capital. The service is still in its infancy. As more businesses become aware of the platform it is likely to expand. As an investor, you can spread the word to your favorite small businesses to see if they can tap into this convenient source for raising capital.
Read more of the review on Entrepreneur here.