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Merchant Cash Advance FAQ

What is a Merchant Cash Advance?

A Merchant Cash Advance is a type of funding available to business owners in need of immediate access to working capital. Rather than a traditional loan, a Merchant Cash Advance is structured as a lump sum payment to a business in exchange for an agreed-upon percentage of future credit card, debit card or cash sales.

Why invest in Merchant Cash Advances?

As an investment, Merchant Cash Advances offer a variety of benefits to investors. Due to the nature of Merchant Cash Advances, Investors typically see a higher return on average compared to traditional loans.. Due to a shorter term (ranging from 3 to 14 months) investor capital is returned much faster and regularly. Correlation to traditional public equity and credit markets is typically low.

What is required for a business to qualify to receive MCA dollars on the supervest platform?

Merchant cash advances are acquired by applying from a lender. Financial statements are then examined by underwriters in order to verify the applicants current financial circumstance. Once this information has been verified, lenders determine a financial offer for the applicant. While applications are typically more relaxed than traditional loans, the application process still provides a thorough inspection to verify the business owner is able to repay the loan.

How are Merchant Cash Advances Different from loans?

A Merchant Cash Advance is not a loan — rather, they are a sale of a portion of future credit,debit card and/or cash sales from a merchant. Therefore, merchant cash advance transactions are not subject to state usury laws that limit lenders from charging high-interest rates.

Why are Interest rates so much higher on Merchant Cash Advances?

Due to the speed of the Merchant Cash Advance approval and funding process, Lenders typically apply a higher interest rate to balance their risk vs. potential return. Additionally, lenders are purchasing future receivables and are not secured against any hard underlying fixed assets.

What are the default rates of a Merchant Cash Advance?

Historically we have seen default rates between 8.5% to 10.5% on the Supervest platform.

How is my investment used by a business owner securing a Merchant Cash Advance?

Use of a Merchant Cash Advance is decided upon by the business owner. Typically a Merchant Cash Advance is used to purchase inventory, acquire new equipment, or expand their business. In order to secure the lenders investment, Merchant Cash Advances are not typically available to business owners looking to complete payroll, pay rent, or pay debts.

What return can I expect to see on a Merchant Cash Advance investment opportunity?

Supervest users have reported returns of 15% to 25%, each investors return may vary based on their individual preset investment deal criteria. Please keep in mind that past returns do not dictate future performance.

Do I have to wait for the investment to be fully funded before they start earning interest?

Yes, with respect to MCA deals, an investor will not begin to see remittances (interest) until they have fully funded their portion of the deal participation.

Frequently Asked Questions About The Supervest Platform

How do I open an account?

In order to get started on Supervest, you can apply here once your accredited status has been confirmed, we will then be able to provide your with account access to the Supervest platform.

How do I deposit money onto my Supervest account?

Supervest users can ACH or wire their deposit directly into their account.

How do I withdraw my balance from Supervest?

Supervest Users can withdraw their cash balance via ACH or via wire instructions.. Withdrawals typically take 24 to 48 hours to process. Any balance that is currently being used to fund deals are inaccessible until the balance of the deal is paid off.

How is cash in my account used?

Any balance that is not being used for an active investment is held in your account. Once an investment opportunity is found the Supervest software directs a portion of your available balance to that opportunity. Cash balances are always available to be withdrawn.

What are the minimum investment requirements?

In order to use the Supervest platform, we require a minimum $25,000 deposit in order to activate your account.

How are investments managed on Supervest?

Investments are selected based on the users preset deal criteria based on their personal risk tolerances.. Investors will be automatically matched to deals based on their set criteria and deals tend to fund that same day. Investors do have an “opt out” window if for any reason they prefer to not participate in a matched deal.

What am I investing in?

Supervest provides access to a variety of alternative investments.

Can Supervest users get an allocation to an investment ahead of launch?

While this may change in the future, Supervest does not currently allow allocations to an investment before launch.

Where can I find documentation for an investment opportunity?

For investment opportunities please contact info@supervest.com or call (888) 548-3801

Are there maximum limits on Supervest investment opportunities?

At the moment, Supervest users are able to invest as much capital as they would like.

How can a family office sign up to invest on Supervest?

The Family Office sign up process is identical to the single user sign up process. We can create individual accounts, or work with one master account to which you can allocate yourself.

Frequently Asked Questions For Accredited Investors

How do I know if I’m an Accredited Investor?

The SEC describes an Accredited investor as any individual, couple, or business entity that matches any of the following requirements:

  1. Earns $200,000+ per year or, with my spousal equivalent, $300,000+ per year.
  2. Has $1,000,000+ in assets excluding primary residence
  3. Owns an entity (ie. family office) with $5,000,000+ in assets
  4. Holds a series 7, 65, or 82 license currently in good standing.

Supervest has partnered with InvestReady as our third party verification entity for investor accreditation

Why is Supervest only available to Accredited Investors?

SEC guidelines that we follow are meant to protect investors and our current structure allows for only accredited investors. Over time, we are looking for ways to include Non-accredited investors in this opportunity, but at the moment, we are unfortunately not offering any services to Non accredited investors.

What verification documents are acceptable to use to confirm my accreditation?

Supervest Users can submit the following documents: 1040, W2, K1 or 1099s

Frequently Asked Questions About New Investment Opportunities

Are There Other Assets Available for Investors on the Supervest platform?

Supervest is continuously looking to provide investors with a variety of investment classes to choose from. We are currently in the process of adding more opportunities to our platform, so please make sure to check in daily for updates about new asset classes.

How often are new investment opportunities added to Supervest?

Supervest users can expect to see a wide selection of investment opportunities available to them on a daily basis. We will be alerting current and potential investors as those offerings become available.

Contact Us Today!

Supervest, LLC

P: 888.548.3801
E: info@supervest.com

1900 E Golf Road
Suite 550
Schaumburg, IL 60173

Supervest, LLC

P: 888.548.3801
E: info@supervest.com

1900 E Golf Road
Suite 550
Schaumburg, IL 60173