What Are Bonds?
A bond is a debt security, similar to an I.O.U. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency, or other entity known as an issuer. In return for that money, the issuer provides you with a bond in which it promises to pay a specified rate of interest during the life of the bond, and to repay the face value of the bond (the principal) when it matures, or comes due. Among the types of bonds available for investment are: U.S. government securities, municipal bonds, corporate bonds, mortgage- and asset-backed securities, federal agency securities, and foreign government bonds.
The characteristics of several different types of U.S. bonds are described in the Bond Basics Glossary at the end of this section. Market practices described here apply to the U.S. bond market, and may differ from those in other countries. Bonds can also be called bills, notes, debt securities, or debt obligations. For more information about bonds, click here.
Financing Using Bonds
This program arranges the issuance of bonds for you when you seek non-dilutive financing, in order to realize the potential of a project. Many companies are using the bond market to diversify their funding sources, raise more new capital than ever before, and get it on favorable terms that improve profitability.
Currently, bond financing is proving better than relying on investors, industry partners, or banks for long-term financing. Bonds are a much better long term financing alternative than bank loans. For information on bonds vs. bank loans, click here.
Advantages of Bond Financing
There are many benefits to bond financing. For instance, you can lock in a historically low fixed interest rate for up to 10 years. You can also avoid the expense and stress of a banker or other traditional lender periodically reviewing your loan.
Other advantages include:
- Non-Recourse Financing
- No Personal Guarantees Even in Startup Situations
- Highest Amounts of Financing Available in the Industry
- Financings Completed in Reasonable Time Frames
Tax-Exempt Bond Financing
Tax-Exempt Bond Financing provides long-term below market interest rate financing for the construction, acquisition, and rehabilitation of affordable rental housing. If you are looking for ways to finance you project, we can help. Some areas of bond financing we have available are healthcare, senior living, religion, education, pharmaceutical, manufacturing, and waste. After an initial review of your project, we will tell you if your project, as presented, has a realistic chance of being funded.