Syndication Management Services in New York

Mitigate Investment Risks with Quality Syndication Management Service

By nature, business investing can seem like a risky proposition. There is never any guarantee that business investing will work, or–at the very least–do well enough to repay a business cash advance. This risky nature of crowdfunding in New York, NY, is enough to keep some would-be participants from joining in this venture. However, it’s important to know that there are effective ways of mitigating the inherent risks of business investing. Through business loans and a great asset manager, a brokerage firm like Cardinal Equity can syndicate up to the full value of a business cash advance, giving small business owners the opportunity to participate in business investing in order to expand their company, and giving Cardinal’s investors the ability to be apart of a fellow entrepreneur’s success.

Understanding Syndicated Advances

A business cash advance, also known as a merchant cash advance (MCA), is a lump sum provided to a small business in exchange for a portion of the company’s future receivables. In exchange for the lump sum, a lender withholds a predetermined percentage of future sales to payback the purchased price of the merchant cash advance. The payback can either be via a percentage of a business’s future credit card sales or a fixed ACH payment from their business bank account. If only one lending party provides the capital for a cash advance, that lender absorbs all the potential risk of default.When many partners syndicate on a deal, the risk is disbursed and diminished, and the reward is distributed proportionally. Usually, in syndication, at least one partner takes on a larger percentage of risk and one partner assumes the responsibility of tracking, reporting, and collecting remittances.

Knowing When Advance Syndication Is Necessary

Merchant cash advance syndication is an intelligent move in order to mitigate the risk of borrower default. Syndication is particularly attractive for high-risk deals, or an “undesirable” yet potentially profitable investment opportunity. The size of syndicated advances can vary from small amounts to multi-million dollar advances. Just as an advance from a sole lender, syndicated advances can be used for the purchase of new equipment, expansion, acquiring new property, or even managing business emergencies and unforeseen circumstances.

Our Syndication Management service provides our investing partners with the highest-quality:

• Tracking technology.
• Reporting and data analytics.
• Collections services.

To learn more about our syndication capacities and syndication management service, call us at (212) 804-5757 today to speak with an asset manager!