The Supervest platform is a way for people to invest in a particular type of alternative asset called a merchant cash advance. A question we get asked a lot by new clients is: How do inventors on the Supervest platform build their self-directed portfolios?
To use our platform, you do have to be either an accredited investor or a registered investment advisor, but that doesn’t mean that all of our clients are experts in merchant cash advances and how best to structure an MCA portfolio. Ultimately, our clients are ordinary, smart people who invest by a few simple guidelines.
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They invest by carefully choosing deals
Our most impressive users make the most of the multi-profile setup that you can create on the platform. They tend to create multiple criteria sets and get really targeted in the type of deals they want to participate in. These criteria can include:
- The maximum participation in any one deal- our best users tend to be extremely well diversified across the deal flow
- FICO ranges based on their own risk tolerance
- Factor rates – balancing low factor rates ( lower risk) vs. higher factor rates ( greater) risk are key considerations.
- Industries that they are particularly interested in or knowledgeable about
It is common to see new clients starting off more moderately and then taking on greater risk later on after they see the performance. In this way, they use their first few months on the platform to test out different kinds of deals and different portfolio criteria to see what they prefer.
They diversify their investments
They don’t invest in just one deal, they invest in multiple deals. Our highest-performing investors are engaged in thousands of different MCAs.
There isn’t much more to say about this really. The more deals you invest in the more likely your portfolio is to counterbalance its losses and gains for a more robust performance overall. Diversification is extremely important in any investment strategy.
They like to do a little research before they start investing
If you’re looking to make good investments, it helps to understand the business you’re investing in and how that company fits into the larger economy.
Due diligence is important to ensure that merchants are legitimate businesses. Ensuring only the highest quality merchants are available to you as an investment is part of the service that Supervest provides. All of the merchants available on our platform go through a rigorous, multi-level vetting procedure to qualify them for the cash advance.
They’re not afraid to ask questions.
The most successful investors on the Supervest platform are those who are not afraid to ask questions. We are always on hand to talk you through any questions you may have, and our strongest investors take advantage of this. Some common questions are:
- How does this investment work?
- What are the risks involved?
- What are my expected returns over the next 12 months or 24 months, or 6 years?
- Can you talk me through these factor rates / FICO scores?
- How do I automate immediate reinvestment of my daily ROI?
You can make healthy returns on your MCA investments by remembering these simple guidelines.
- Honor your own risk appetite and timeline requirements.
- Consider the type of deals you want to invest in and create your portfolio criteria accordingly. Adjust it as often as necessary.
- Invest in hundreds if not thousands of deals.
- Ask questions – profit from the expertise of our team.
- Take advantage of the daily remittances by immediately reinvesting them into more MCA deals.
Want to take our advice and ask us some questions? We are looking forward to hearing from you.