Per my conversation with the CEO of one of our MCA vendors – as of the end of February 2017 their current AR (Accounts Receivable) is $79.6 MM with lender liability of $40.2 MM. In laymen’s terms, this means that they have almost $2 of money due them from the short-term loans that they have made for every $1 of investor money that they have collected. In addition, they have $6.5 MM in cash and reserves.
These products provide short-term opportunities to our clients (9 months – 24 months) with options of either monthly interest payments or deferred payments of interest and principle at the end of the selected term. The product works for individual and institutional lenders and can be held inside a self-directed IRA. Current returns vary from the high single (9%) to the mid double digits (16%) depending on term and size of the investment. If you would like to discuss the MCA product and how it may fit within your portfolio please call me at the number provided.