Since the launch of the ‘Shaving Bond’ by the men’s grooming brand, King of Shaves, in 2009 there has been a fair amount of publicity surrounding ‘mini-bond’ issues by various companies.
Mini-bonds started life as an alternative financing method at a time when the country was in the depths of a recession and bank lending was scarce. They have since been used not only for fundraising, but also as a tool for companies to engage with their customer base by allowing customers to participate in the company’s future and (hopefully) its success story. Many of the more recent mini-bond issues have also been structured to reward loyalty so the issuer gives the investor a cash coupon which is greater if cashed for goods or services provided by the issuer.
Read the full article on Business Shapers.