Investment Opportunities in Business Financing
Reasons Why Business Financing Advances Are Now Appealing for Investors
has been syndicated
on The LNS Platform
Individual Self-Directed Business Funding
has been funded on the LNS Platform.
Has been funded on
the LNS Platform
Now accessible through LNS, accredited investors can connect with business financing companies seeking capital to meet the rising demand for funding solutions.
LNS has carefully curated a selection of reputable financing companies open to syndication, offering investors a unique opportunity to participate in deal originations. With thorough due diligence and ongoing monitoring of these companies, LNS enables investors to diversify across multiple funders and thousands of businesses. When investing via the LNS platform, individual exposure is capped at a maximum of 5% per funding advance, ensuring a balanced and secure approach.
You Will Start Getting Money Back Within A Week.
Make Money Quickly
Average advance only lasts between 3-12 months so you can make a great return in a short period of time.
Diversify Risk
We Syndicate Investor Capital Across Multiple Advances to decrease risk and exposure.
You Will Start Getting Money Back Within A Week.
Make Money Quickly
Average advance only lasts between 3-12 months so you can make a great return in a short period of time.
Diversify Risk
We Syndicate Investor Capital Across Multiple Advances to decrease risk and exposure.
Due to stricter regulations and shifting risk assessments, businesses, especially those with annual revenues under $5 million, are facing unprecedented challenges in securing the necessary funding for their operations. According to Delaware Business Now, an average of 70% of these businesses are being denied loans.
Due to various factors, small businesses often find it difficult to secure traditional loans from banks or the Small Business Administration. Even when approved, the wait times can be prohibitive. This has fueled the growth of non-traditional financing options, with Debanked estimating the Self-Directed Funding market to be worth over $100 billion globally. If a business is unable to obtain a traditional loan and wants to avoid relying heavily on high-interest credit cards, a Self-Directed Funding can be a viable alternative.
Self-directed business funding is a short-term financing option, typically lasting between 3 to 12 months. Unlike traditional loans, it involves receiving a lump sum in exchange for a share of future sales revenue. This unregulated structure allows business owners the freedom to use the funds as needed, offering more flexibility than conventional financing. To learn more about how this type of funding and invoice factoring work, visit our Business Funding Solutions page.
The S&P 500 has historically averaged an annual return of around 8% since 1957, as reported by Investopedia. However, the volatility of the stock market can make this relatively modest return feel unpredictable. Investing in business funding solutions has the potential to provide significantly higher returns, often with lower volatility. Until recently, this type of investment was primarily limited to accredited investors and hedge funds, involving high-risk, high-interest funding for various businesses.
For accredited investors, diversifying across multiple funders or portfolios was challenging. The main risk involved was relying on a single funding company's underwriting process and deal quality, with minimal transparency into their operations. As a result, the risk concentrated in one source could pose significant challenges for investors.
Investing in business funding solutions can carry significant risks, even for highly accredited investors, especially in uncertain economic climates. One major risk is that businesses receiving funding typically do not provide collateral, meaning if a business defaults, there is no protection for the investor's capital. Moreover, investments in this area have often been concentrated within a single funding company rather than diversified across multiple businesses, increasing the risk exposure.
Investing in business funding solutions provides the unique advantage of directly supporting the growth of businesses, particularly smaller, local enterprises. There's intrinsic satisfaction in helping small businesses thrive, alongside the potential for strong returns. These funding solutions can offer returns that surpass those of traditional high-yield investment options in the public markets. By incorporating alternative investments into your portfolio, such as business funding, you can mitigate risk, as these investments tend to have low correlation with stock market fluctuations. Combining traditional investments with alternative business funding solutions can lead to a more diversified portfolio, potentially lowering volatility while improving overall returns.
Advances in technology and increased access to information are reshaping the investment landscape, especially in the realm of alternative investments. New platforms are removing traditional barriers, making these opportunities more accessible and lowering costs for investors. With reduced minimum investment requirements, these platforms offer a more practical entry point for a wider range of investors. Platforms like LNS Capital Partners connect investors directly with funding companies, pooling resources for selected businesses. This model significantly reduces risk by limiting individual investments to 5% per company, allowing for broader diversification across hundreds of businesses. Unlike traditional investing models, these platforms give investors the ability to select specific companies, offering greater control and a more focused investment approach.
At LNS, we match investors with opportunities that align with their individual risk tolerance and specific preferences, such as the merchant's FICO score or loan term. Our platform provides investors with the same tools typically available to professional investors, empowering them to make informed decisions. To participate in LNS Capital Partners’ crowdfunding opportunities, you must be an accredited investor. Simply fill out a basic application, complete a risk assessment, undergo a background check, determine the amount of your investment to allocate to funding, and start receiving returns in just a few days.
Discover a high-yield, diversified investment opportunity with our Self-Directed Funding Platform. Designed for sophisticated accredited investors seeking alternative assets, contact us today to learn more.
