Crowdsourced finance business Crowdcube has launched a new financial solution for fast growing businesses: a mini-bond product that offers high interest rates to investors.

The idea brings retail bonds to the crowdfunding community and allows businesses to grow without giving away equity – unlike the standard crowdfunding model.

It enables issuers to access finance from a crowd of registered investors, as well as their own customer base and the general public.

The first company to use the service is Chilango, a London-based Mexican restaurant chain, founded by two former-Skype executives in 2007.

Chilango’s ‘Burrito Bond’ aims to raise up to £1 million and offers investors an eight per cent annual return over a four-year term.

Added benefits are free burrito vouchers for all investors and a VIP bondholder party for the first 100 investors.

Those that invest £10,000 will be entitled to free food for the duration of the bond.

Chilango’s co-founder Eric Partaker said: “Our Burrito Bond is the perfect way for us to engage with our loyal following as well as Crowdcube’s investor base and accelerate our expansion plans with additional growth capital.

“As big fans of Mexican food we love everything that is vibrant, fresh and fun and Crowdcube is all of these. Its mini-bond platform is a breath of fresh air amongst the complexity and expense of existing solutions.”