SME Bonds for more established companies:
An issue of SME Bonds provides a way for more established businesses with strong cash flow to obtain debt finance without watering down the existing investors in the company. Investors receive regular interest payments until the end of the bond term and receive their initial investment back at the end as well.
SME Bonds can be purchased by retail* and sophisticated as well as professional investors with fixed rate terms of 1 to 3 years for established businesses.
SME Bonds are not without risk to your capital. Interest payments and forward looking financial projections are not guaranteed.
*Currently, in Australia, the limit on retail investors is set by the Corporations Act, at 20 in any 12 month period.