Why investors choose note products
- Defined terms: Fixed coupon, stated maturity date, and clear payment schedule.
- Rate visibility: Coupon is known at subscription (subject to the specific offering).
- Portfolio fit: Useful for income targeting, cash-flow planning, and laddering maturities.
Supervest offers multiple note offerings over time. Details such as coupon, payment frequency, minimums, and maturities are offering-specific—review the documents for the note you select.
The anatomy of a Supervest note (what you’ll see in each offering)
When you open the Investments page, you’ll typically see:
- Coupon / Interest Rate: Fixed annual rate (e.g., 10%–15% APR) stated in the offering.
- Term / Maturity: The number of months until principal is due (e.g., 12, 24, or 36).
- Payment Frequency: Monthly, quarterly, or balloon (see the offering).
- Minimum Investment: The smallest subscription amount accepted.
- Funding Deadline / Cutoff: The date by which funds must arrive for a given cycle.
- Offering Documents: Subscription agreement and disclosures governing the note.
Important: Each note product can differ. Your rights and obligations come from the documents for that specific note.
Step-by-step: From “interested” to first interest payment
1) Browse current offerings
Go to supervest.com/investments to compare coupons, terms, and payment frequencies. Align the note’s term to your cash-flow horizon and the note’s coupon/frequency to your income goals.
Pro tip: If you like consistent cash flow, consider building a ladder: subscribe to multiple notes with staggered maturities and payment frequencies (e.g., 12, 24, and 36 months).
2) Confirm eligibility and complete KYC/AML
Supervest note products are for accredited investors. You’ll be asked to verify your status and complete identity checks (KYC/AML). This is standard for private note offerings.
3) Review the documents (don’t skip this)
Download and read the offering materials. Look for:
- Coupon, payment frequency, and day-count basis (if stated)
- Funding instructions and deadlines
- Maturity date, extension/renewal mechanics (if any)
- Servicing/administration details
- Risk factors and disclosures
If something is unclear, ask questions before you subscribe.
4) Execute the subscription agreement
Electronically submit the subscription docs (entity details if applicable), confirm your allocation amount, and receive funding instructions.
5) Fund your subscription
Send funds by the stated cutoff via the accepted payment method(s) listed in the offering (e.g., bank transfer/wire). Your subscription becomes effective per the offering’s terms once accepted and funded.
6) Accrual & payment schedule
Interest accrues from the Effective Date (as defined in the offering documents) and follows the schedule set out in those documents. Most notes pay monthly or quarterly (check the exact dates and “record date” vs “payment date” language). Your first interest payment will arrive on the first scheduled payment date after the Effective Date, per the offering’s accrual and payment rules.
Example (illustrative only):
- Funding received: November 10th (before the November cutoff)
- Effective Date per docs: November 15th
- Payment schedule: Monthly, paid on the 15th for the prior period
- First payment: December 15 (covers days in November as specified in the docs)
Actual timing depends on the offering; always defer to your note’s governing documents.
7) Ongoing reporting
You’ll receive statements and/or dashboard visibility showing:
- Your principal balance
- Accrued/paid interest
- Next scheduled payment date
- Maturity date
8) Maturity and principal return
At maturity (absent any stated extensions or renewal options in the documents), remaining principal is due as described in the offering. If a renewal or new allocation is available, you’ll be notified per the normal process.
What affects your first interest payment date?
- Funding cutoff: Missing the cutoff can push your start into the next cycle.
- Acceptance date: Your allocation must be countersigned/accepted per the docs.
- Payment frequency: Monthly vs quarterly changes the wait to your first check.
If you have a target cash-flow month, subscribe and fund ahead of cutoffs.
A simple cash-flow illustration (hypothetical)
Purely illustrative; not an indication of any current offering.
- Allocation: $100,000
- Coupon: 15.0% fixed (annual)
- Frequency: Quarterly
Approx. quarterly interest (simple, ignoring day count):
$100,000 × 0.15 ÷ 4 = $3,750/quarterly
Over a 12-month term: $15,000 total interest (before taxes), plus principal return at maturity per the offering.
Your actual results will depend on the specific note’s terms, accrual basis, timing, and any compounding or reinvestment mechanics disclosed in the documents.
Risk, liquidity, and other key considerations
- Principal at risk: As with all private investments, you can lose money. Review risk factors.
- Liquidity: Notes are generally not designed for daily liquidity or secondary trading. Plan your horizon.
- Diversification: Consider spreading allocations across maturities or multiple notes (when available).
- Operational risk: Follow funding instructions precisely and watch cutoffs.
- Tax treatment: Many fixed-income investors receive Form 1099-INT for interest (confirm with your tax advisor and the specific offering).
How to match a note to your goals
- Cash-flow now: Favor higher coupon and monthly frequency (if available).
- Known expense in 12–36 months: Match the note’s maturity to your date; avoid premature liquidity needs.
- Rate certainty: Fixed-rate notes provide visibility for budgeting.
- Laddering: Stagger maturities for rolling liquidity (e.g., 12/24/36 months).
Common mistakes to avoid
- Waiting past the funding cutoff. This can delay accrual and your first payment.
- Skimming the docs. The payment convention and dates live in the offering, not assumptions.
- Allocating short-term cash you’ll need early. Notes are commitment instruments.
- Ignoring minimums or increments. Make sure your amount meets the offering’s requirements.
Quick start checklist
☐ Confirm you’re an accredited investor
☐ Compare current offerings on /investments
☐ Read the full offering documents
☐ Execute subscription docs
☐ Fund before the cutoff date
☐ Track your dashboard for payment timing
☐ Revisit maturity options well before the due date
FAQs
Do I need to be an accredited investor?
Yes. Supervest note products are offered to accredited investors. You’ll complete verification during onboarding.
When do I receive my first interest payment?
On the first scheduled payment date after the Effective Date, according to the offering’s accrual and payment rules.
Are note coupons fixed?
Coupons are specified in each offering. Many Supervest notes carry fixed rates; confirmed in the documents.
What’s the typical payment frequency?
Varies by offering (typically monthly or quarterly). The exact schedule is in the documents.
Can I exit early?
Notes are not designed for daily liquidity. Early exits, if any, are governed strictly by the offering documents.
How are interest payments taxed?
Generally as ordinary income (often reported via 1099-INT), but always consult your tax advisor and the specific offering.
What are the minimums?
Minimums are offering-specific and will be clearly listed on the Investments page and documents.
Compliance & disclosures
For accredited investors only. This blog is for informational purposes and is not investment, legal, or tax advice. All investments involve risk, including loss of principal. Actual terms—including coupon, payment frequency, accrual conventions, minimums, fees (if any), and maturity—are governed solely by each offering’s documents. Review all materials carefully before investing.
