Crowdfunding isn’t just for helping families in-need with medical bills or getting the third installment of a movie franchise made; it can be used to help your business during the COVID-19 pandemic and beyond!
At the beginning of the COVID-19 pandemic in the United States, small businesses placed a heavy emphasis on gift cards and shopping small to keep their businesses going. If your gift card promotions have run out of steam, it may be time to take a look at trying a Honeycomb Loyalty Bond.
What is Honeycomb?
Honeycomb Credit is an investment crowdfunding platform made for local businesses to borrow funds from their community of customers. On this platform, Honeycomb offers loyalty bond campaigns which can aid the business and incentivize the customer in return. These bonds or “maturing gift cards” will create a reason for customers to come back to your business at least four times over the next two years, and likely spend more.
How Does a Honeycomb Loyalty Bond Work?
After you have set up your platform and have set your campaign raise goal (minimum of $1,000), your customer can purchase their bond on Honeycomb for any amount of $50 and up. The amount purchased has a bond multiple of 1.3, giving the customer more than what they initially are paying for. That matured dollar amount is then divided into fourths and is disbursed to the customer every six months over a two year period. For example, if your customer bought a $100 gift card, they would receive $32.50 every six months for two years, with a grand total of $130 over the length of the bond. Six months after the purchase is made, your customer will receive their first “matured” gift card via a redemption code that is emailed to them. The only fee that comes with the loyalty bond is Honeycomb’s 6% “success fee”.
Is My Restaurant/Small Business Eligible for a Honeycomb Loyalty Bond?
There are a few essential criteria that businesses must meet to be able to apply for a Honeycomb Loyalty Bond.
- 1 year minimum of operating history
- Strong social/email following
- Physical or online shop that can take gift cards
It’s that easy! Since this is crowdfunding and not a traditional loan, there is no credit check or financial review that needs to be performed. You can fill out the application on Honeycomb and get your campaign going in as little as 24 hours
We know this is a difficult time for all restaurants and small businesses and we hope resources like Honeycomb can help you succeed!