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Merchant Cash
Advances For
Accredited Investors

Find Out Why Merchant Cash Advances Are Now Appealing to Accredited Investors

Find Out Why Merchant Cash Advances Are Now Appealing to Accredited Investors

Are you investing as:

Individual
or
Business

Make Money Within Days

You Will Start Getting Money
Back Within A Week.

Diversify Risk

We Syndicate Investor Capital Across Multiple Advances to decrease risk and exposure.

Make Money Quickly

average advance only lasts between 3-12 months so you can make a great return in a short period of time.

Great wealth is created in great opportunity. Merchant Cash Advances are that opportunity.

Merchant Cash Advances are now open to investors through the Supervest Platform.

Supervest is a platform that allows accredited investors to fund advances, sourced by merchant cash advance funding companies.

MCA funding companies are in need of additional capital because the demand for advances outstrips their own  supply of capital. Supervest has vetted and selected several  funding companies interested in the syndication and participation in their deal flow.  Accredited investors can now access these funders and participate in their deal originations knowing that Supervest has performed full diligence and continues to monitor the funders deal flow and business.

Supervest allows investors to diversify across many funding companies, and thousands of merchants these funding companies advance too. In fact, when an investor puts their money to work on the Supervest platform, the maximum exposure investors have to one cash advance is 5%.

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Here’s why...

The lending industry has changed greatly over the last 30 years, particularly since 2008.

As a result of regulatory changes and changing risk profiles, it’s harder then ever for businesses to gain access to the funds they need to survive.

According to Delaware business now, on average, 70% of businesses under 5 million in revenue per year are being rejected on their loan applications.

The lead-up...

Regulations have tightened around lending practices.
  1. Banks are less risk-tolerant than they once were.
  2. If businesses have only been in operation for less than a year or do not qualify for traditional lending.
  3. If the business owners credit isn’t superb, usually they won’t qualify for traditional lending.
  4. Traditional lending takes time.
  5. COVID-19 has shrunk available capital for many industries

For multiple reasons, small businesses are denied traditional loans from banks or the Small Business Association and even if they are approved, sometimes business owners don’t want to wait.

This has lead to a build up in the non traditional financing market.

Debanked’s research estimated the MCA market at over 20 billion dollars worldwide.

If a business isn’t able to easily secure a financial partnership and doesn’t want to use multiple high interest credit cards, the next option is a merchant cash advance.

A merchant cash advance is a financial tool that allows a funding company to provide a business with money as an advance against future sales of the business.

Money goes into the business and it’s paid back as sales are made and the funding company is paid back as a part of every sale.

MCAs can help businesses expand, solve a short-term financial issue, purchase an asset, purchase inventory, launch a marketing campaign, or assist with other business-related ventures.

Merchant Cash Advances

The Basics of MCAs

This type of financing is short-term, typically anywhere from 3 to 12 months. Although, technically it is not a loan rather a business transaction in which there is an exchange of a lump-sum of cash for a percentage of future sales

The financing is unregulated, which means business owners can use the capital however they see fit, unlike traditional loans. To learn about the mechanics of an MCA and invoice factoring, you can look at our Merchant Cash Advance page.

Investing in an MCA

According to Investopedia, the annual average return of the S&P 500 since 1957 is about 8%. The volatility of the market may cause fear for your investment, especially one with that small of a return.

Investing in merchant cash financing may result in far superior returns relative to the stock market with perhaps lower volatility too. Up until recently, investing in a merchant cash advance has been a tightly-held private sphere that has been intertwined with massive amounts of risk. Merchant cash advance funders pay high-interest rates to private credit firms and hedge funds to secure the necessary funding to provide MCAs to various businesses.

As an accredited investor, it was almost impossible to to diversify by funder never mind the underlying merchant exposures.  The risk to such an investor centered on that one funding company and the hope they originated and underwrote strong deal flow.  There was little or know transparency into the process and often those singular risks would eventually be detrimental to the investor.

MCA Investing-Risks

Funding any company in shaky times is a risk for even highly accredited investors.

When businesses receive MCAs, they do not have to offer any collateral. So for the investor, if the loan is not remitted, there is no insurance to protect the investment.

Risk was extremely high because investments were not diversified amongst various companies.

The Upside of Investing in MCAs

An alternative investment such as merchant cash advances is great because you are directly helping businesses scale up. There is some satisfaction in helping mom and pop shops produce.

On top of the intrinsic value that is provided, there is potential for massive returns. Returns can far exceed what traditional high yield opportunities can offer in the public markets

Extending your investment portfolio to alternative investments like merchant cash advances is a way of mitigating risk and fortifying the portfolio against volatility. Merchant cash advances have little correlation to the stock market. A combination of traditional investing and merchant cash advance investing would offset each other nicely and provide a healthy, balanced return.

Changing Investment Platform

Technology and more easily accessible information is changing the platform in which investments are being made. Platforms for alternative investing are opening up new methods of investing that were previously extremely privately held.

Not only is accessibility increasing, but the cost is decreasing. These platforms are decreasing the minimum amount of investments, which can be more practical for some investors.

Platforms like Supervest for merchant cash advances are connecting investors to merchant funding companies who syndicate investors’ money together for select businesses.

Unlike previous forms of investing in MCAs, this platform mitigates risk extensively. There is a maximum of 5% of an investment in a singular business at a time. Investors have the potential to be invested in hundreds of companies at a time.

Investors do not blindly back the multitude of different companies either, they can hand-select which ones that they want their investment funneled into.

Put Your Capital

To Work Today!

Get Started

At Supervest, matches are highly personalized according to risk tolerance and specific preferences with things such as loan term lengths. Our investors now have a similar tool set most professional investors have access too.

To become an investor, you do have to be an accredited investor to sign up for Supervest’s crowdfunding opportunity. All you have to do is fill out a basic application, meet our approval requirements, determine how much of your investment you want to allocate to MCA, and then receive the return in just a few days.

Additionally, Supervest offers complete transparency with your funds, and cash balances can be removed at any time. MCA investing has never been more easy, less risky, or as straightforward as it is now with Supervest’s platform.