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  • Writer's pictureChip H.

Introducing Loyalty Bonds

Updated: Aug 10, 2021

A graphic that reads "I invest local!"

Today, we’re announcing a new product for small businesses that offers debt-free capital, and a new way to engage their communities during a time of crisis. We call them ”Loyalty Bonds." Loyalty Bonds enable small businesses to raise cash quickly by selling a gift card “subscription” that will keep customers coming back for years to come.

It works like this: a customer purchases a loyalty bond via crowdfunding contributions on the Honeycomb platform, for which they’ll receive gift cards or store credit worth 1.3x their contribution. Here’s the interesting part— they receive their gift card in four equal installments every six months over the course of two years… kind of like a maturing bond. The business owner avoids a cash crunch when they reopen, and the customers infuse capital into their favorite business now and treat themselves to the rewards beginning in six months.

Are you a small business looking to sell loyalty bonds on Honeycomb? Get started here.

Graphic explaining how loyalty bonds work with four steps

Small Businesses can easily start a Loyalty Bond campaign, and it can be up and running in as little as 24 hours. The minimum campaign amount is $3000, and there is no maximum. The only requirements are at least 1 year of operating history, a strong social media and/or email following, and a physical or online shop that accepts gift cards. There is no credit check or financial review.

Honeycomb CEO George Cook explains: “Purchasing gift cards can be a great way to support small businesses right now, but unfortunately as businesses reopen if all of their customers come back shopping with gift cards, businesses risk a cash flow catastrophe. The Loyalty Bond program solves for this problem while ensuring that customers will keep coming back for years to come. Businesses win with money to help them weather the storm, and contributors win with a great bargain at their favorite small businesses.”

If you want to purchase loyalty bonds for great local business, head here.


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