Who invests in NCF?
NCF is an appropriate investment for individuals and institutional investors who are seeking a consistent high- yield return with low volatility. It is also suitable for investors who want passive income from regular monthly interest payments and those who would like to diversify their overall portfolio away from traditional investments like stocks, bonds, and government debt. Because NCF’s notes are two-year notes, investors driven by capital preservation are still able to enjoy returns more typical of riskier high yield assets.
What is an accredited investor?
The fund is open to accredited investors only. An individual who has income of at least $200,000 over the previous
two years (or $300,000 with a spouse), or who has assets worth at least $1M outside the value of a primary
residence. For entity investors, assets must total at least $5 Million, or all of the owners of the entity are accredited investors.
Who does NCF do business with and why do they pay a higher interest rate?
NCF services the underbanked market by providing financing for businesses across the U.S. through the purchase of accounts receivable at a discount, and making loans for equipment and working capital. We Believe in the EntrepreneurⓇ is more than just a motto. In particular, NCF’s initial client risk-evaluation and risk-monitoring systems allow it to profit from opportunities that banks and other lending institutions do not. NCF pursues a diversified-portfolio strategy and has funded over 165 clients in 45 states and from different industries. Over its history, NCF has lost less than 0.2% of its $2.5 Billion purchased receivables. These factors allow NCF to pay a higher rate of return on its subordinated loans.
How is the offering structured?
Loans are typically 24-month interest only loans with a balloon payment due at maturity. 8% interest payments are paid monthly.
How often do I renew?
Loans automatically renew at the end of two years unless you notify us you want your principal back.
How do I get started?
Please contact New Century Financial to request a copy of our Private Placement Memorandum (PPM). Once you have reviewed the documents and had your questions answered, we can walk you through what is required. Once the documents are signed and received, and we have received certified funds or a wire, we can get your money to work quickly.
How do I receive payments?
You will receive monthly interest payments through check or direct deposit. You can expect to receive your monthly payment at the end of every month.
Can I change my mind about reinvestment?
Yes, you have the ability to change your mind.
What is the minimum investment to get started?
The loans are sold in units of $50,000. The minimum investment is one unit.
Can I use my IRA, 401K, or other qualified funds to invest?
Many IRAs, 401Ks and pension custodians allow you to use qualified funds to invest with NCF. We work closely with several custodians that can accommodate your specific needs.
How do I keep up to date with my investment?
You will be sent an annual letter from our auditors verifying the principal balance of your loan. You may call or email and request information at any time.