Clovest is a funding platform for business projects. We enable small business to borrow money from members of their community – customers, partners, friends and family – in the form of a zero-interest loan. Specifically, we provide the web platform, marketing assistance, payment solution, and the framework necessary to make such community-led funding possible.
Unlike other funding platforms, funders on Clovest projects have their contributions repaid by businesses on a quarterly basis! This lets local businesses not only undertake growth projects at a reasonable cost, but also do so with the explicit support of their communities!
Most other funding platforms allow individuals to pledge money in exchange for some sort of reward or perk. While they have seen tremendous success in recent years, these models are generally better suited for artistic or niche projects and can, in fact, be quite cumbersome if used for small business financing. Managing the rewards and redemption process after a campaign can require considerable administrative resources and has, by nature, unpredictable financial costs.
With Clovest, we believe in making things not only cheaper, but also simpler for businesses seeking funding. Instead of rewards or perks, funders have their contributions repaid in full over time. Once a project is funded, the business simply sends Clovest a check each quarter during the repayment period, and we then distribute the owed principal repayments to each of the funders on behalf of the business. No customer service, no funder management, no runaway costs – just one simple check.
Your money matters. No matter where decide you put it – a bank account, the stock market, precious metals, your mattress – that decision directly affects other individuals. Buying gold benefits other gold investors; buying equity in a public company benefits other shareholders; hoarding cash in your mattress makes everyone else's money just a little bit more valuable. But these benefits are so spread out over such a huge group of people that your individual contribution to everyone else is negligible.
There are plenty of investment opportunities out there to satisfy the want of a return, but very few outlets to concentrate the benefits of your wealth in your own community. Storing your money in a local bank may ensure your dollars are loaned out locally, but you have no direct stake in the development of specific local businesses. At Clovest, we're trying to change that.
Clovest projects give you the opportunity to invest your money directly into local businesses and be a part of the economic development of your community. While your loan will not yield interest or perks, our platform enables you to circulate your wealth in your local community and build deeper relationships with the businesses that serve you.
Due to securities and investment regulations, we can only offer funders repayment of their principal contributions. In other words, any money you lend to projects on Clovest is obligated to be repaid in full (by the business), but no more– hence, zero-interest loans.
Though we cannot offer financial or in-kind returns at the moment, we are working hard to find new ways to provide value to our businesses and funders alike. One way we do this is by working with businesses to identify and host events that celebrate the success of their funding campaigns AND are open for the entire community to attend.
Also, keep in mind that funding projects on Clovest not only fosters the growth of local businesses, but also gives you, the funder, a direct stake in the economic development of your local community!
Yes. As with any investment, there is the risk of principal loss. Clovest does not run credit checks on Borrowers (though all businesses must certify that they have not declared bankruptcy or entered foreclosure in the prior 24 months and provide us with their previous years' tax returns). Additionally, all information posted on our website regarding the Borrower has been provided by the Borrower themselves. Repayment of loans made through Clovest is conditional on the Borrower making each of their quarterly payments and, as such, is not guaranteed.
That being said, when evaluating businesses that wish to raise funds on Clovest, we do our best to ensure that they have the support and and backing of the communities in which they operate. This is because, most often, funders on Clovest projects come from the business' base of local customers and community. As a result, businesses that raise funding through Clovest have strong incentives to repay it – not just out of their legal obligation (through the Funding Agreement), but also to maintain the trust and relationships they have built with some of their most loyal customers.
If a project meets its fundraising goal by the end of the pledging period, we charge a fee of 10% for our services rendered in helping obtain funding and facilitating quarterly repayments to funders. We withhold this fee from the amount raised during the initial funding. (This fee covers all the transaction costs incurred during the funding and repayment process.)
That's it. There are no application fees, no funding fees, no additional processing or repayment fees. Additionally, this cost is paid entirely by the business raising funds – funders are repaid their principal contributions in full and never have to pay any fees to use our platform.