What Are Bonds? - What Are Bonds? A Great Infographic From Mint.com - What are bonds? A bond is a loan from an investor to a company. When we need a new car, we typically go to the bank and borrow money and purchase the car with a car loan. The same can be true for a company. They can go to a bank and borrow funds for a new factory or to expand a product line. Or, they can borrow money from individual investors. When a company, needs to borrow money, they issue bonds.