Why Diversify with MCAs?

October 16, 2023

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Diversifying with alternative assets is becoming more and more popular for their low-correlation, risk-reward profiles. Within alternative asset investing, including Merchant Cash Advances (MCAs) in your portfolio offers another way to moderate the risk associated with traditional investment vehicles, diversify out of the 60/40, access higher liquidity assets, and benefit from the compounding velocity of reinvesting returns on a daily basis.

This blog will address MCA considerations for investors and shed light on why MCAs are becoming a topic of interest in contemporary investment dialogues.

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Alternatives like MCAs can offer higher liquidity than some traditional asset types. Photo by Monstera Productions

Why MCAs Are Gaining Traction in Diversified Portfolios

Amongst the many alternative asset classes, MCAs stand out for a variety of reasons:

  • Alternative Revenue Stream: MCAs represent a non-traditional form of financing for businesses. By diversifying with MCAs, investors tap into a unique revenue stream that isn’t directly correlated with stock market fluctuations.
  • Flexibility: MCAs offer businesses the advantage of flexible repayment based on daily sales. This adaptability can mean reduced risk of default, providing a level of security to investors.
  • Transparency: Reputable platforms, like Supervest, give you detailed insights into MCA transactions, allowing you to make informed decisions based on world-class data.
  • Comprehensive risk management: Our 5% exposure cap gives extra levels of in-build risk management to investors. This cap means that you are not overly reliant on any one transaction, promoting a diversified investment approach and further shielding portfolios from potential market volatility.
  • Impressive track record: Our Q2 reports show that both our short-term 10% note and our mid-term 12% MCA investment notes achieved 100% of their target ROI for investors.
  • No fees: We do not charge you any fees on your MCA investment notes with us. Investing with Supervest means you get exposure to the benefits of alternative assets without incurring any hefty management, purchase, or settling fees.

For modern investors seeking to diversify their portfolio and build a resilient investment structure, MCAs provide both the novelty and the potential for solid returns.

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MCAs can bring diversification as well as regular income. Photo by Monstera Productions

Balancing the Portfolio: MCAs in the Mix

You’ve seen the news. You’ve watched the stock market. You already know that investment diversification is more crucial than ever.

Introducing Merchant Cash Advances to diversify your portfolio can bring some specific benefits that you might struggle to find elsewhere. Here’s why:

  • Adaptability to Market Dynamics: Unlike some traditional investment avenues, MCAs can exhibit resilience to broader market downturns, providing a buffer against unexpected economic shifts.
  • Predictable Cash Flow: Our investors love this one. The structure of MCAs can mean consistent returns, a big plus for investors looking to stabilize their income streams.
  • Risk Management with Caps: This is another platform favorite. At Supervest, we emphasize the importance of minimizing risk. The 5% exposure cap stands as a testament to this commitment, ensuring investors are not overly exposed in any single transaction.
  • Growth Potential: As banks continue to tighten lending criteria and small businesses seek flexible financing options, the demand for MCAs rises.

Incorporating MCAs into your investment strategy can offer both stability and growth potential, crucial elements for a well-rounded portfolio in today’s unpredictable financial climate.

Liking what you read? Explore our platform and discover how MCAs can redefine your investment approach.

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