Debt Investments: Overview

What is a debt investment?

In general, debt investments on NextSeed means businesses are offering monthly payments to investors and to make payments in full by a certain maturity date. Usually, these are short/middle-term investments of up to 6 years. Investors have no ownership in the business and the investment ends when payments end. If a business liquidates its assets, debt holders are first in line and have a claim to those assets before equity stakeholders. This means debt holders will be paid first before equity holders get anything.

Who can make a debt investment?

Anyone can invest in a debt investment in a Regulation Crowdfunding offering. Anyone can invest at least $2,200 every 12 months, and investments limits apply to those making larger investments.

Only accredited investors can make an investment under Regulation D offerings.

How do I make a debt investment?

You will need to sign up and create an investment account on NextSeed. This investment account is held at our partner bank, GoldStar Trust. You will need to link your bank account to your NextSeed account so you can easily transfer funds in and out. All investments are made from your NextSeed account, and any payments made by businesses will be deposited into your NextSeed account.

You can invest through the offering page by clicking on “Invest Now.”