Invest in
SMEs

Invest in the lifeblood of our global economy while receiving an attractive yield.

Excellent
returns

Bank lending is the most common source of external finance for many SMEs and entrepreneurs, which are often heavily reliant on traditional debt to fulfill their start-up, cash flow and investment needs.

Traditional bank funding poses challenges to SMEs, in particular to newer, innovative and fast growing companies, with a higher risk-return profile. In the current low-interest environment investing in SMEs can offer excellent returns (6-8%), while also improving the diversification of a portfolio.

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A diversified
portfolio

Nxchange offers a diversified portfolio of SME loans in collaboration with SME credit provider Swishfund. Swishfund is a technology driven and fast growing B2B lending company, focused on short term loans to SMEs in the Netherlands and the UK. Swishfund focuses on financing SMEs with collateral and a healthy cash flow. Swishfund has a proven track record and heavily standardized processes of providing credit to SMEs with automated onboarding, credit management, and monitoring processes, through their proprietary machine learning algorithms.

Swishfund has a highly diversified portfolio and has provided credit to more than 4,000 different SMEs in the Netherlands and the UK, with an average loan amount of EUR 21k in NL and GBP 55k in the UK.

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The Swish
bond

You can invest in SME on Nxchange by buying the Swish bond. The Swish bond is a 8% junior bond with a nominal value of Eur 100,000, duration of 4 years and monthly interest payments. The Swish bond is a junior bullet bond, which means that it will be repaid at the end of the duration. You as a Swishfund bond-holder will act as a junior funder. The junior funder finances a SPV that buys all loans from Swishfund on a daily basis. A SPV (special purpose vehicle) is a subsidiary created by a parent company to isolate financial risk. Therefore, the SPV is fully protected in case of default of Swishfund. The junior bond finances 13% of the pool of loans financed by the SPV and is subordinated to the 87% senior debt provided by NIBC.

The Swish bond will be listed on Nxchange. 20% of the total issued outstanding bonds will be held in liquidity to provide a repurchase facility on the secondary market. 20% of the investors that wish to sell their bonds before the end of the duration are guaranteed to be able to sell their bonds at 98% of the nominal value.