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  • Writer's pictureCalla Norman

How to Get Paid Back after Investing in a Crowdfunding Campaign

So you decided to make an investment in a small business on Honeycomb - congratulations! Not only should you be proud of the impact your investment is making on a small business owner and their community, but you can also anticipate the potential of a return!*

*Disclaimer: this article is for educational purposes only and should not be taken as investment advice. Investing is inherently risky and investors should be prepared to lose some or all of their investment.

Wait, I get paid back for contributing to this crowdfunding campaign?

Yes! One of the differences between Honeycomb and a rewards crowdfunding platform like Kickstarter is that when you invest in a business on Honeycomb, there is the expectation that you will receive your money back, plus interest.

We do this for multiple reasons - for one, as an investor, you’re more likely to invest, and invest more if you know there’s a potential of a return on your investment. Secondly, lots of small business owners don’t like to ask for “hand-outs” from their community, which is why facilitating an investment allows them to fairly access capital that they will eventually pay back.

When do I get paid back on my Honeycomb investment?

Business owners start paying back their Honeycomb loans in monthly payments, which then get disbursed to investors (you) quarterly. You’ll get a notification when a business makes their first repayment, mostly to show that they’re on their way to paying back the loan, and another when the funds are on their way to your bank account.

Honeycomb loan terms are usually 3 to 5 years, though some accomplish their goals sooner. So for the next few years, you’ll be getting these emails every few months telling you when you get a payment back - plus an update on how the business is doing!

How do I keep track of my Honeycomb investments and repayments?

On our new platform (ta-da!), you have the opportunity to track your Honeycomb investments and impact using the Investor portfolio! It’s super easy to find - you just click on the three horizontal lines in the top right corner by your profile picture, which will bring up your dashboard. Then you click on “Portfolio,” which will show you your total investments, total repaid so far, your projected returns, the principal left on your investment, and the time left until your next payment.

Check out below to see what it looks like (and don’t worry - mine’s empty because as a Honeycomb employee I can’t technically invest, due to SEC compliance. Yours will look a lot better than mine!)

Start investing in small businesses today, and see those payments roll in

Understanding how the payment process works is all well and good, but actually investing in small businesses on Honeycomb is where the fun is. Browse live campaigns now and see if there’s one you’d like to invest in!


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