Business bonds and debentures are longer term investments where you are lending money to an ethical business or charity for a fixed amount of time, of anything from 1 to 20 years or longer.
Business bonds and debentures provide the charity or business with the finance they need to expand their activities. And they might be cheaper or more flexible for the business than borrowing from a bank.
Debentures are unsecured loans i.e. they are not secured against any assets or collateral that the business has, such as a property. Instead you are lending based on the creditworthiness of the business issuing the debenture in the belief that the business is likely to be able to pay the interest promised and make the repayments of the original investment amount.
Bonds are sometimes secured, sometimes not.
Bonds and debentures do not give you a vote in the business.
The business pays you interest and returns the money you originally invested plus the interest at the end of the term.
Business bonds and debentures should not be confused with savings bonds, which are essentially long term deposits in a savings account. Business bonds are not covered by the government’s Financial Services Compensation Scheme, only savings bonds are. Please make sure to check these details for each investment.
Your money will be tied up for the full term and so you will not be able to access it. However you may be able to sell the bond to another investor on Ethex, although neither the sale nor the price you receive will be guaranteed.
Business bonds and debentures are more risky than savings, and you should consider these risks carefully before investing. Your money will be tied up for the full term and so you will not be able to access it. However, you may be able to sell the debenture to another investor, although neither the sale nor the price you receive will be guaranteed.
Abundance Debentures are very long-term investments where you are lending money to a business for 20-25 years. A debenture bought through Abundance is an unsecured long-term certificate that gives you the right to receive a proportion of the revenue or profits from an energy project.
When you purchase a debenture through Abundance you are lending money to a specific energy project. You are not investing in Abundance. It is the energy project who are the issuer of the debentures.
Debentures bought through Abundance mean you can invest in renewable energy from as little as £5.
Debentures can be listed for sale on the Abundance website and in some cases on the Ethex website.
The Ethex team are here to help from 9am to 5pm
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