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Supervest, Due Diligence, and MCA Investments

August 28, 2023

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Maximizing due diligence in MCA Investments is a top priority for us, as it no doubt is for you.

At the end of the day, investment is as much about protecting capital as it is about growing it. Through comprehensive underwriting and review processes, continuous oversight, and a dedication to transparency, Supervest has built a platform where you can feel confident about the safety of your capital.

Let’s look at how.

Understanding MCA Investments

Merchant Cash Advances are not your typical investment vehicles. Lately, they have been capturing the attention of investors for their lucrative potential. Unlike traditional loans, MCAs are about exchanging a lump sum of cash for a percentage of future sales. You can read a detailed report on exactly what this process involves here. However, as with every investment, the inherent risks from market fluctuations and business performance can be daunting.

Why MCA Investments Can Be Risky

Short-term Nature: MCAs typically run for 12 to 24 months, a relatively shorter period than most traditional investments. This can mean greater volatility and less time to recover from market downturns.

Business Performance Dependency: The returns on MCA investments are closely linked to how well the business performs. If a company fails to generate expected sales, it can impact the repayment.

Market Fluctuations: Like all financial instruments, MCAs are susceptible to broader market dynamics which can introduce unpredictability.

Digital image of cash, coins, and credit card under a glass serving dish. Due Diligence  MCA Investments
Minimizing risk is a top priority. Photo by Monstera.

Supervest’s Approach to Minimizing Risks

Supervest is an industry leader in MCA investing. Here is a look into our due diligence process.

  1. Thorough Vetting Process: Every deal, every merchant, every time.
  • Only accredited investors are brought on board.
  • Every merchant undergoes a detailed background check, credit score evaluation, and full financial record analysis.
  • This combination ensures both the credibility of investors and the quality of deals.
  1. Strategic Diversification: We don’t put all your eggs in one basket.
  • Capital is syndicated across multiple advances, diversifying the risk.
  • With a cap of 5% on exposure to any single advance, the risk is judiciously diluted.
  1. Regular Vigilance: Constant monitoring, continuous assurance.
  • Supervest doesn’t just onboard and forget. We continuously monitor the deal flow and health of funding companies.
  • Any signs of potential risk are identified early, allowing for timely intervention and action.
  1. Transparency and Fluidity: Full visibility, no surprises.
  • Supervest gives you unparalleled clarity. When you invest with us, you have complete transparency about where and how your funds are used.
  • Once the term of your investment is up, it is easy to roll your investment into another note.
Digital image of cash, coins and an ascending line graph. Due Diligence  MCA Investments
We have funded more than 8,000 MCA deals, representing over $900m. Photo by Pexels.

Data-Backed Assurance

Supervest’s platform has shown remarkable resilience and success thanks to this proven suite of risk management approaches.

Since inception, our Mid-Term Note and short-term Note have performed as expected, making all scheduled interest payments on time and in full. Our notes’ strong performance is due to several factors, including our ability to partner with strong funding originators and the expertise to discern the quality deal investments that underlie the notes portfolio.

You can read our full Q2 investment report here for even more detail.

Conclusion: Safety Meets Opportunity

Supervest is the trusted partner of thousands of accredited investors. Together, we have funded over 38,000 MCA deals, representing more than $900m of wisely invested capital.

Explore Supervest’s platform today, and let your capital work in a space where safety meets opportunity.

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