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Investing Amid Uncertainty: MCA Notes vs. T-bills

May 30, 2023

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Investing Amid Uncertainty: MCA Notes vs. T-bills

Are you on a quest for a compelling investment opportunity? Let’s talk about Merchant Cash Advances (MCAs), a little-known but potentially lucrative alternative to the traditional 12-month and 24-month US treasury bills.

A man jumps in the air with a smile on his face
MCA notes may help to ease the burden of ongoing T-bill stagnation. Photo by Jonathan Sebastiao on Unsplash

The treasury bill landscape has historically been a stable and safe haven for investors. It’s a guaranteed return, backed by the full faith and credit of the US government. But with current returns for 12-month and 24-month bills at 5.07% and 4.28%, respectively, are they really the best investment for your money, especially during periods of uncertainty?

Enter Merchant Cash Advances

An MCA is a financing tool, that allows businesses to borrow against future earnings. It’s a thriving marketplace, and Supervest offers MCA notes that aim to deliver attractive returns; 10% for a 12-month note and 12% for a 24-month note.

You’re potentially looking at nearly double the return on your investment compared to treasury bills.

Meticulous due diligence

The immediate question that might pop up is, “What about the risk?” It’s an important consideration. MCA notes, like any investment, do carry risk. However, Supervest’s rigorous underwriting process carefully vets each business and diversifies investments across multiple MCA notes, mitigating risk and safeguarding your capital.

At Supervest, we take immense pride in our stringent vetting and due diligence processes. Each merchant, prior to qualifying for a Merchant Cash Advance, must pass through an intensive review process that ensures they are capable and reliable in servicing an advance.

two men working over papers and laptops uncertainty
We have a granular, multi-layered due diligence process for all merchants. Photo by Scott Graham on Unsplash

Furthermore, we’ve partnered with a renowned, nationally recognized collection recovery company to diligently monitor all MCA notes on our platform for any missed payments. This company has direct access and reporting capabilities through our platform, allowing them to swiftly identify and address any payment discrepancies.

In the event of a missed payment, the recovery company immediately initiates communications with the Funder to collect payment information and status updates. Should an MCA display signs of delay or default, the recovery company ensures that the funder is proactively pursuing a resolution. As changes in status occur, updates are promptly reflected on our platform, maintaining transparency for our syndicate partners and for you.

This meticulous attention to detail throughout the entire process not only enhances the security of investments on our platform but also fosters trust and confidence amongst our investors.

Lackluster T-bills

While treasury bills are traditionally a low-risk investment, their returns, particularly in the current low-yield environment, may not be keeping pace with inflation. Your investment might be safe, but it could be losing purchasing power over time. Meanwhile, the significantly higher target yields offered by MCA notes at Supervest could potentially help you to outpace inflation and grow your capital.

A deflated balloon with a smiling face lies on the road uncertainty
T-bills may no longer offer the security that they once did. Photo by Nathan Dumlao on Unsplash

The dynamic world of MCA notes brings a whole new perspective to investing, especially during periods of uncertainty, and when compared to the current returns of treasury bills, it certainly offers a compelling case. If you’re seeking potentially higher returns, you might find MCA notes a valuable addition to your portfolio, especially amid uncertainty.

Supervest’s MCA notes are not only designed for better potential returns but also for the ease and simplicity of investing. You don’t have to be a seasoned investor or finance expert to dip your toes into this exciting opportunity. Our dedicated team is always here to guide you through the process.

Investing isn’t merely about safety; it’s also about growth. You have the power to make that choice.

Ready to explore a potentially lucrative path with MCA notes? Reach out to us today. We can’t wait to work with you.

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