What are the differences between Crowdfunding bonds and corporate bonds?

Crowdfunding bonds and corporate bonds are similar and different in the following ways: 

Differences

1. Shorter investment period: Crowdfunding bonds tend to have a shorter maturity compared to corporate bonds. PeerPower offers Crowdfunding bonds with an investment period between 1 to 36 months.

2. Higher interest rates: Crowdfunding bonds on PeerPower platform generally offer a higher interest rate compared to corporate bonds. However, crowdfunding bonds can also carry higher investment risks. 

3.  Size of issuer: While corporate bonds are issued by big corporates and public companies, Crowdfunding bond issuers are usually mid-caps or smaller businesses.

4. Repayment options: Some of the Crowdfunding bonds on PeerPower platform have amortization repayment, while other have bullet repayment. Investors can choose to invest in the bonds with repayment method that suits their preference. 

5. An individual can become a Crowdfunding investor by registering with PeerPower and identifying themselves online through the e-KYC system. 

6. The minimum amount of investment: 20,000 baht. 

7. Secondary Market: Currently there is no secondary market for Crowdfunding bonds on PeerPower platform. This is different from other bonds sold in public markets which has the primary market in the stock market, and secondary market which allow trading between investors. 

Similarities 

1. One of the repayment methods of PeerPower Crowdfunding bonds is bullet repayment, which is similar to corporate bonds. 

2. PeerPower Crowdfunding bonds are also given credit ratings of A/B/C/D. Ratings are assessed by PeerPower specialists.