The securities in this case may be secured bonds, unsecured bonds, or convertible instruments.

Investments through debt crowdfunding are available with businesses that are thoroughly vetted by the Crowdfunding Intermediary to meet the requirements of the Securities and Exchange Commission. The issuer, that is the business raising the fund is required to submit an offering document stating the securities being offered for investment.

The business entity is profiled with details including name of business, nature of business, location of business, legal status, ownership structure, capital required and minimum investment amount. The offering document for the fundraising is made available for prospective investors.

Under debt crowdfunding, the amount invested is held in an escrow account until fundraising is closed.

Once the fundraising target is reached, documentation is completed to allocate securities and investment certificates to each investor, and funds are transferred to the issuer.

When the minimum target amount to be raised is not reached upon closure, the amounts invested are refunded to the investors.