Discover the BeeBonds podcast, which gives you the keys to boosting and investing your savings in new products. meaningful projects thanks to our crowdlending platform.
This podcast presents :
- the mechanism of crowdlending
- The advantages (and risks) of participatory financing
- How to invest on the BeeBonds platform
Episode 1: Discovering BeeBonds and crowdlending
In this episode, we'll explain in detail :
- What is crowdlending?
- What triggered the creation of BeeBonds?
Transcript
Crowdfunding or participative lending in French is an innovative way to invest at no cost in SMEs and the real economy via a digital platform.
Our alternative financing platform is approved by a supervisory authority: the FSMA (Financial Services and Markets Authority). It allows us to legally put investors and project owners in direct contact with each other.
We offer individuals and companies the chance to support a business project directly. The carriers do what we call : "a public offering in the form of a loan.
In exchange for this loan, you receive a return in the form of interest that varies according to the borrower's project, profile and the term of the loan.
The projects that we offer are carefully considered by a selection committee made up entirely of experts, including financial professionals from the stock market world.
BeeBonds focuses on transparency and is based on a model for analysing, selecting and monitoring files, with quarterly reporting.
Each project is validated and audited by a "big 4". This means that the issuer's figures are carefully studied before being presented to you.
We are selective and this is an integral part of our DNA. innovative, useful and profitable projects with an impact on the local economy.
To understand our DNA, we need to explain where we come from: Founded by Joël Duysan, a former stockbroker, in 2011. BeeBonds emerged in the career of its founder as a way of supporting projects with real added value and meaning.
At the age of 6, while some of his friends wanted to be racing drivers, he wanted to be a stockbroker. After studying commercial engineering at Solvay and a traineeship, he became a stockbroker. He became a stockbroker and spent his entire career on the stock exchange. He was involved in client order execution, trading, arbitrage and wealth and asset management.
The birth of BeeBonds is a response to frustration and an observation linked to developments in the financial market.
In 2008, the Fortis collapse was largely due to the introduction of such complex products that even the chairmen of the financial institutions ended up missing the mark. Joel, an industry professional at the time, came to realise that the market had gone too far in structuring products.
It got to the point where the financiers themselves were only thinking of issuing financial products to make money for themselves before thinking of the benefit to the end customer.
BeeBonds is a return to the source and to the foundations of a financial market, i.e. to enable investors to invest in a project that they understand, that is realistic, transparent and that moves society forward.
Unlike a purely speculative stock market investment with little social value, or bank investments that no longer yield any return, crowd platforms enable direct contact between the project owner and the investor by offering local, useful and comprehensible projects with total transparency.
BeeBonds responds to a simple problem: you have a project that could be profitable, but you don't have the means to carry it out yourself. BeeBonds helps you raise the necessary funds.
In exchange, you pay the investors a remuneration, which is the interest rate over a given period, and that's all there is to it.
Direct contact BeeBonds' mission is to create a financing network without intermediaries that promotes the concept of a short financing circuit!
Episode 2: How to invest with BeeBonds
In this episode, we'll explain in detail :
- What happens when I invest in a BeeBonds project? ;
- How does BeeBonds manage to offer an average rate of return of over 7 gross per annum?
Transcript
One of the advantages of crowdlending is your ability to invest your savings in such a way as to obtain a return of between 6 and 9 % gross annual interest For each bond, i.e. loan subscribed, the coupon is the regular income generated by each bond on the basis of the interest rate paid to the bondholders.
On average, you receive an annual interest payment (7.7 gross) for a fixed period (from 2 to 5 years, depending on the project). At the end of the project, you recover your entire initial investment. Interest is paid once a year on the anniversary date of the bond issue.
The amount paid is fixed on the basis of the rate set out in the prospectus and the capital is repaid on the maturity date of the bond. in the information memorandum.
Let's take a simple example If you invest 10,000 euros in a project 3 years, offering a gross rate of return of 8% per annum:
- In year 1 : on the anniversary date of the bond issue for the project you have subscribed to, you will receive the interest, i.e. 800 euros.
- Year 2: on the same anniversary date, you will still receive 800 euros.
- In year 3 : you will receive €800 on top of the €10,000 loan that will be repaid to you.
The total amount you will have received will therefore be 12,400 euros. That's 2,400 euros more for your savings (before withholding tax of 30%). At that point, the interest is paid directly into your bank account, which you will have entered in your investor profile.
We'll now answer a second question you might be asking yourself: How does BeeBonds manage to offer an average rate of return of over 7 gross per year?
There's one thing you need to know: the BeeBonds loans we organise are always complementary to a bank loan.
And this is very important because it means that the project to be financed has been validated, certified and analysed in detail by the credit committee of the bank in question.
A bank has therefore given the green light to finance the project to the tune of 70%, for an average annual bank rate of 7%.
If the bank provides 70% of financing for the project, the project owner must provide 30% of equity to complete the project.
It's simple: the amount that the company has to repay to investors at a high rate only represents part of the project's financing (i.e. around 20%, since it will in fact be contributing 10% itself).
In a nutshell:
- 70% for banking,
- 20% for BeeBonds investors, and
- 10% for the project leader.
So you'll understand that, in the end, 20% to 7% of interest is "expensive" for the project promoter, but absolutely essential: without it, the project won't get off the ground.
Episode 3: The advantages and disadvantages of crowdlending
In this episode, we'll take a look at :
- What are the advantages and risks of crowdlending?
- In what way BeeBonds stands out from other crowdlending platforms.
Transcript
Becoming a BeeBonds investor has its advantages, but it also means exposing yourself to risks that you should be fully aware of before investing your own funds.
First, we'll take a look at the various advantages of investing in projects.
Be a BeeBonds investor, is to benefit from an attractive return on your savings, but, above all, it means investing free of charge in local projects with real added value and meaning.
By investing with BeeBonds, you are supporting the people behind the projects, you boost public savings and company cash flow. Our mission is to give everyone the opportunity to finance their project and not to restrict financial lending to the big players.
So, by selecting projects with real added and societal value, such as eco-responsible property projects or cultural projects, as an investor you not only get a financial return, but also a "philosophical" return.
In addition to this advantage linked to the positive social impact, investing with BeeBonds also means taking advantage of an innovative financial product with a number of exclusive features:
- The BeeBonds team consists of financial professionals from the stock market world. BeeBonds stands out in the crowdlending sector for a dual financial analysis of projectss offered to investors, that of its own team and that of a "big 4", to guarantee maximum transparency and quality.
- With BeeBonds, you have direct interaction with transmitters and you are kept up to date on the progress of projects through quarterly follow-ups.
- What's more, BeeBonds is the only platform for the stock market liquidity of issues. via Expert Market.
And it's far from trivial. If you want to sell your bonds, or if someone dies and the estate wants to sell the person's portfolio: it's possible!
In addition, for each project financed on the platform, BeeBonds undertakes to sponsor a beehive in partnership with uKeepers beekeepers who have been working to develop beekeeping in Brussels that respects bees and the environment since 2016.
Protecting bees is a major challenge for our planet. Bees are essential to maintaining biodiversity. And that's why BeeBonds wants to do its bit.
Finally, the fascinating way in which the beehives work is a perfect illustration of the model of solidarity and usefulness that BeeBonds advocates in its approach to participatory financing.
Indeed, there is a real analogy, in other words a similar symbolism, between BeeBonds and a swarm of bees. In a way, the investors have contributed their pollen, i.e. their own funds, their investments.
And like the beekeeper who does everything possible to ensure that his hive develops and produces pure quality honey, BeeBonds supports projects and ensures that investments result in a pure, simple and natural financial product.
Having discussed the various advantages of investing with BeeBonds, we will now talk about the risks of investing in a financial equity loan.
First of all, like any loan, investing in a project means potentially exposing yourself to a number of risks. For one thing, the bonds offered are debt instruments. Lending to SMEs exposes you to the risk of losing all or part of your investment.
For individuals resident in Belgium for tax purposes, interest income is subject to a withholding tax of 30%.
Before investing, we advise you to read the information note and the descriptive note relating to the project which accompanies the detailed sheet for each project. All this can be consulted on the BeeBonds website.
The only advice we can give you to limit the risks: diversify your portfolio and the projects you invest in !
Like the well-known expression "don't put all your eggs in one basket".The more you diversify, the more you get a recurring return in Year 2, and the more you limit the risk if a project fails.
Episode 4: Discovering the BeeBonds platform
In this episode, we'll explain :
- How to use the platform ;
- How to create an investor account
Transcript
To invest in BeeBonds projects, you need to complete two steps. First, create an account on the BeeBonds platform, which will give you access to all the fundable projects. Then, if you want to invest, you need to create an investor account.
In just a few clicks and in less than 5 minutes, Your two accounts are created and you are ready to invest in the project of your choice.
Step 1: Create your free BeeBonds account
Creating an account on the BeeBonds platform is completely free and takes less than two minutes. This account gives you access to all the information about the projects you can finance.
You must specify the type of account you wish to create. You can choose between an account for a natural person or for a legal entity.
All you have to do is complete the questionnaire fields :
- your name
- your first name
- mail address
- password
- and accept the terms and conditions and the privacy policy.
Now that you've created your account, you can browse through the various projects to be financed.
Each project is accompanied by a detailed fact sheet containing all the important information, including :
- the minimum investment amount
- the amount to be raised or already raised
- the interest rate and even the maturity of the project.
Beyond this purely financial information, you also have access to other data, such as :
- a full description of the project
- its advantages
- who are the directors?
- How will they repay?
Step 2: Create a BeeBonds investor account
To be able to invest, you will need to create an investor account in advance. However, to create an investor account, you need to meet certain criteria:
- not be a US citizen within the meaning of FATCA)
- not be resident for tax purposes in a country outside the European Economic Area.
To avoid wasting time, we recommend that you carry a few administrative documents in PDF, PNG or JPEG format:
- your identity card
- proof of address.
If you have a tax residence outside Belgium, you must also provide a copy of your latest tax return or proof of your foreign tax identification number.
Next, you'll come to a three-step form:
- The first, entitled Appropriate character test, consists of 10 short MCQ questions on the world of finance and financial lending.
- You will be taken directly to step 2, called account information. You must fill in the form with some of your personal details.
- You will then be redirected to the third stage, finalising your identification, where you need to upload several documents.
In just a few clicks and five minutes, your investor account is created. But it's not yet active. BeeBonds teams will get back to you as soon as your account is active.
If you would like more information on investments, please consult the tab "Investing of the BeeBonds website, including frequently asked questions If you would like more information about BeeBonds, its employees and how it operates, please visit the following page About us.
You can also read our blog posts on company news, new projects and fundraising campaigns on the Blog.
