Frequently Asked Questions
How can we help?
FAQS
FOR ISSUERS
How is Token Interest different from Kickstarter?
Kickstarter uses rewards/pre-orders: customers pay upfront for a future product.
Token Interest operates under Regulation Crowdfunding (Reg CF): your community invests in a loan (a security) to fund things like equipment, property, or working capital—options Kickstarter doesn’t offer. It’s financing, not donations.
Why crowdfunding?
Crowdfunding turns your community into a source of capital and momentum. Investors tend to be your most loyal customers—sharing updates, sending referrals, posting reviews, and helping your business get noticed.
It’s also a practical market test. When people commit real dollars, that’s proof of belief. If commitments don’t materialize, you’ve learned early and inexpensively and can move on to your next idea without heavy sunk costs.
With Token Interest, issuers help set key loan terms—the interest rate, repayment schedule, and overall duration—subject to our platform and legal requirements. That flexibility can make funding possible when traditional loans feel too restrictive.
What is the maximum/minimum I can raise?
Minimum target (recommended): $10,000 You set your target; if you don’t meet it, you don’t close and investor funds are returned.
Maximum in a 12-month period: $5,000,000 (subject to SEC limits).
You can also set a target maximum amount up to the legal maximum.
What are the financial disclosure requirements?
The financial disclosure requirements vary for different levels of capital raised. The more a firm raises, the more disclosure and review is required. Below are different levels of capital you can raise with the associated disclosure requirement.
- $124,000 or less: If outstanding capital raised through crowdfunding plus current capital raised is less than or equal to $124,000, then information from the most recent tax return should be posted. This information must be certified by the principal executive officer. In the event that the company has financial statements available, they must be posted in lieu of tax return information.
- Between $124,000.01 to $618,000: If outstanding capital raised through crowdfunding plus current capital raised is between $124,000 and $618,000, the company must provide financial statements reviewed by a CPA. If audited financial statements are available, they must be provided.
- Between $618,000.01 to $5 million: If net capital raised is above $618,000, audited financial statements must be provided. If this is the company’s first time funding capital through Regulation Crowdfunding, audited financial statements are only required if the company is raising $1,235,000 or more.
These financial statements are posted to the SEC’s website in addition to the funding portal’s website and are available for review by investors during the funding period.
What are the cons of crowdfunding?
Public financials: your financial statements are publicly available on the SEC’s site.
Ongoing reporting: issuers file an annual Form C-AR with updated info and financials. It is similar to Form C filed at the begin of the campaign and includes basic information about the company and the financial statements. If a company has less than 300 holders of record, then the Form C will only need to be filed once. If the company’s net worth is less than $10,000,000, they are only required to file a Form C for three years.
What is a Form C?
Form C is the filing you submit to the SEC to launch a Reg CF offering. It includes company details, use of proceeds, risks, financials, and terms. Investors can’t invest until Form C is filed and live. Click here to learn more.
Is my company a good fit for crowdfunding?
Any U.S. company with a supportive community can succeed. Crowdfunding works best when you can mobilize your own audience.
Not eligible: non-U.S. company and companies not abiding by federal laws
How do I start a campaign?
Beginning your campaign may seem like an overwhelming task. At Token Interest we assign a specialist to guide you from prep to close. Click here to view the campaign guide for a step-by-step checklist. Contact us at support@tokeninterest.finance with any questions (we can help with disclosures, terms, and launch timelines).
Can I use my own loan contract?
To reduce cost and errors, Token Interest uses standardized, customizable smart-contract loan agreements. Because traditional legal documents don’t translate cleanly to code, we don’t accept external templates. Most common loan structures are supported — contact us at support@tokeninterest.finance to confirm your needs.
How does Token Interest select investments?
We screen for fraud and assess basic business fundamentals. Factors may include founder experience, working capital, tangible net worth, and other indicators of ability to repay. Only offerings that meet our baseline standards appear on the site. (Screening is not investment advice.)
How long will I need to campaign?
By law, offerings must be live at least 21 days. We generally recommend 2–3 months: long enough to market effectively, short enough to keep urgency.
What happens if we don’t hit our minimum target?
If you don’t reach your minimum by the deadline, no funds are released and all commitments are canceled/refunded. You can regroup and try again.
How are repayments handled?
Repayments follow the schedule in your terms (e.g., monthly interest-only with a balloon, or fully-amortizing). Payments are processed through our servicing flow and distributed to investors pro-rata, minus any servicing fees.
What does it cost?
Issuers typically pay a portal fee (percentage of funds raised), plus escrow/payment processing and closing/servicing fees. We provide a transparent fee sheet before you sign.
Can we close early or do rolling closes?
If you meet the minimum and satisfy notice requirements, you may close on a rolling basis and continue accepting investments up to your maximum. We’ll coordinate timing and required updates.
What can we say publicly while raising?
Reg CF has rules for advertising and updates. In short, stick to “tombstone”-style facts in public promo and keep detailed terms and projections on your campaign page. We’ll give you do’s & don’ts and review key materials.
This is not investment advice and should not be considered as such.