Frequently Asked Questions
Don't see your question here? Feel free to email us at hello@honeycombcredit.com!
Honeycomb Credit is a web-based platform that allows small business owners to borrow loans from their own customers and community. We recognized that many great local business owners struggle to get access to small growth capital loans for their businesses while many individuals are looking for ways to invest locally in causes and companies they believe in – Honeycomb connects these two groups through our platform to build communities one small business at a time.
Yes, we believe in democratizing the lending process by allowing individuals to invest relatively small amounts in loans for businesses they care about. All of the opportunities at our site are offered under section 4(a)(6) of the Securities Act of 1933, which is often referred to as “Title III Crowdfunding” or “Regulation Crowdfunding” or “Reg CF.”
Not really. At Kickstarter/GFM, you make donations to businesses and get nothing in return other than “rewards.” – this is referred to as Reward Crowdfunding. On our platform you are actually making a loan with the expectation of getting your money back plus interest.
Anyone can invest, as long as you’re 18 or older.
You will only be charged a transaction fee when you make an investment. This fee helps cover Honeycomb’s expenses and may vary depending on your chosen funding source, such as a bank account, credit card, Google Pay, Apple Pay, wire transfer, Individual Retirement Account (IRA), or your Honeycomb Wallet. Before completing your investment commitment, you’ll have the chance to review the exact fee amount. See our Education Materials for additional information on transaction fees.
Yes. We use SSL (Secure Sockets Layer) for security by making an encrypted link between your browser and our associated servers. SSL is an industry standard for protecting the integrity of online transactions.
Under our Privacy Policy, we won’t sell or share your personal information with anyone.
No, these are not safe investments. All of the opportunities on our site are offered by small businesses with limited resources. It is very likely that some of the companies listed on our site will fail to repay their loans. These opportunities are only for investors who can handle losing some or all of their investment.
Our Educational Materials list some of the generic risks of investing. You can also find additional risks specific to the business listed on the "Form C" which can be found on the Investor Info tab of the campaign's page.
When you click on a business, you’ll see a lot of information right away on the campaign page. For more information, after you click on the project, click on the Investor Info tab. There you’ll find the company's "Form C" which provides more in-depth information about the project and the investment.
At the bottom of each campaign page, you'll see how Honeycomb Portal is compensated. Generally, Honeycomb receives a percentage of the total amount raised for each successful campaign.
Additionally we have a posting fee for the issuer and a small percentage-based investment fee to cover our costs to host and manage a campaign.
Our compensation structure may change from time to time and you can find the latest information in our Educational Materials.
When you invest, you'll be opening an investment account at our partner U.S. bank to make your investment and subsequently receive principal and interest payments back from the business.
Under U.S. Federal law, the bank needs your social security number to open an account on your behalf.
Based on U.S. Federal Law, investors need to have a social security number, OR an Individual taxpayer identification number (ITIN) with a valid U.S. bank account. For questions, please contact support@honeycombcredit.com.
Simply select the “Apply for a Loan” button and complete the short form. We’ll reach out within 48 hours if we need any further information. If your loan request meets our standards, you will be invited to create a campaign which will be reviewed by us before going live.
Once your campaign is live you will need to encourage your customers and other community members to invest in your loan.
No. Business owners or managers can apply for a loan at no cost and with no risk of impacting their personal credit score.
Right now, the maximum is $250,000.
We are looking for borrowers who want to invest in the growth of their businesses. If you’re unclear if your use of funds would qualify, feel free to submit an application and we can discuss in more detail.
Our loans are typically fully amortizing with a term of 2-5 years based on the preference and needs of your business.
No. Personal guaranties are an option that will help lower your rate, but for some businesses would not be a requirement.
Once all of your information has been submitted and you have answered any additional questions, we will have a decision to you within three business days.
No, Honeycomb is only a portal that connects small businesses with potential investors. The loans will be made by investors who sign up at our site.
No. If we accept your application, it just means that you will be invited to create a campaign which will be listed on our site.
You can download the Honeycomb Credit mobile app from the Apple App Store or Google Play Store. Simply search for "Honeycomb Credit" and tap "Install" to begin the download.
If you're having trouble downloading the app, try the following troubleshooting steps:
Ensure you have a stable internet connection.
Check that your device has enough storage space.
Restart your device and try downloading the app again.
If the issue persists, contact our support team at support@honeycombcredit.com.
Here are a few tips that might help free up some space:
Delete Unused Apps: Review your installed apps and remove any that you no longer use.
Clear Cache/Data: Go to your phone’s settings and clear the cache or data from apps that take up a lot of space.
Transfer Photos and Videos: Consider transferring your photos and videos to a cloud service or an external storage device.
Remove Old Files: Check for any old files, downloads, or large attachments that can be deleted.
After trying these steps, please attempt the download again.
If you already have an account with Honeycomb Credit, simply enter your email and password to log in. If you're new, tap on "Sign Up" and follow the instructions to create an account.
Tap on "Forgot Password?" on the login screen, and follow the prompts to reset your password. You'll receive an email with instructions on how to reset it.
You can enable biometric login through your device settings. Go to the app’s settings, tap on "Security," and toggle on Touch ID or Face ID.
If the app crashes, try closing it completely and reopening it. If the problem continues, ensure your app is updated to the latest version. If the issue persists, please contact our support team at support@honeycombcredit.com.
You can manage your push notifications through your device's settings. Currently, we don't offer granular notification controls within the app, but this feature will be available in future updates.
If you experience any issues with your investments, please contact our support team immediately at support@honeycombcredit.com with details of the problem.
To leave a review, visit the Honeycomb Credit page on the Apple App Store or Google Play Store, scroll down to the reviews section, and share your experience.
Our support team reviews all feedback within three business days. We appreciate all feedback and use it to improve our services.
We are planning to introduce advanced filters, such as distance from your location, interest rates, and investment types. Additionally, we will be improving the document search functionality and providing more granular notification controls. If you have any feature requests, please email support@honeycombcredit.com.
You can reach our support team at support@honeycombcredit.com for any assistance or questions related to the mobile app.
Your Honeycomb Wallet is a free and secure digital wallet that allows you to store repayments from your investments. Similar to offerings from your bank and other institutions (PayPal, Venmo), the funds in your Wallet are yours, and can be used to invest in campaigns or transferred to your bank account at any time.
No, it is not cryptocurrency. The funds in your wallet are real dollars, held by a real bank, which you can reinvest or transfer to your own bank account.
When you use the Honeycomb Wallet, loan repayments arrive more quickly than if they were to go to a traditional bank. Plus, you can reinvest those repayments with lower fees than with other payment types.
Honeycomb's processing fees for Wallets are lower than processing fees for traditional banks. By forgoing the banks in favor of the Wallet, we are passing those cost savings on to you.
Absolutely, and you can choose to transfer your funds to your bank account, or use them to invest in additional Honeycomb campaigns with lower investor transaction fees.
From your dashboard, select Honeycomb Wallet, then Transfer Funds. The funds will arrive in your bank account in 2-4 business days.
Yes. All data is encrypted in transit and at rest, and your funds are held securely in our partner bank.
Yes, and other banking wallets.
Our financial technology partner is Dwolla, who provides this service for many major technology companies.
Absolutely, and Wallet investments enjoy a lower processing fee than investments from bank accounts.
No. Your wallet funds may only be transferred to your bank account on record.
Yes. Contact support@honeycombcredit.com and we'll get this set up right away, though you’ll be missing out on faster repayments and lower investment fees.
Not yet. At this time, repayments are the only way your wallet funds are populated.
Not at this time. You can log in and transfer the funds at any time, or contact support to have repayments routed directly to your bank.