Alternative Investing in a Bull and Bear Market Explained by the Family Business Fund
BOCA RATON, Fla., May 4, 2021 (Newswire.com) - 2020 has been one of the most tumultuous years in history as the coronavirus pandemic worsened each month. Investors experienced record bearishness swings to record bullishness in short cycles. 2020 reminds us that a consistent investment approach with a diverse portfolio is most reliable.
The majority of investors have never heard of alternative investing. Because of it, while people were rushing to sell their shares, consult with their advisors, and get blood pressure medication, we enjoyed stable, fixed-income payments every month. The Family Business Fund (FBF) invests money into a process called hard money lending. The money is used to fund small businesses with merchant cash advances, which essentially means that the business owner is granted asset-based advances (the borrower receives the cash advance in exchange for their assets being used as collateral). This is common in real estate when home buyers may not be approved for a mortgage or loan from a bank. Hard money loans have much shorter repayment schedules and much higher interest rates. The result is significantly higher returns for the investor.
"But what about the risk?" People are quick to assume that alternative investing is much riskier than the risks associated with traditional investing. The volatility of the stock market is perhaps the one thing that is guaranteed when investing money in the NYSE or Nasdaq. When the pandemic struck, the stock market went from its typical 10-15% volatility rate to a heart-stopping 78%. With alternative investing, the businesses we invest in operate independently of the stock market. Not only that but it's secured with underlying assets—the collateral. These two things in tandem not only give higher returns, it presents a lot less risk for the investor.
The Family Business Fund functions as the middleman between investors and the small businesses receiving the merchant cash advances, taking all the hard work out of alternative investing. The Family Business Fund finds small businesses in need of merchant cash advances, vets them through a rigorous process, secures the underlying assets, and even handles the underwriting and repayment terms. In the Family Business Fund, the underlying assets are the outstanding invoices that the businesses have yet to get paid for. This means that Family Business Fund has secured the money we know they will receive.
For help navigating alternative investing, please contact the Family Business Fund and discover how to get started on a less volatile investment solution.
About Family Business Fund
The Family Business Fund was founded in 2018 to help ensure that small businesses have access to the resources needed to thrive. Founded by small business owners for small business owners, we provide alternative funding to small and mid-sized businesses in need. For more information, contact Douglas Muir at douglas@familybusinessfund.com or (888) 884-6442 ext. 3.
Source: The Family Business Fund