Investing in working capital transactions is not for everyone. In fact, it is not for most people. Before investing, please consider the risk, carefully review our agreements and disclaimers, and fully educate yourself on the risks, including seeking competent professional advice. The FinTech industry is rapidly expanding and there are many exciting opportunities, but not all opportunities are equal, and you need to know what you are doing before you do it.
What is the process?
- Research working capital until you’re blue in the face. We’ve included some info below that you may find interesting, but you should probably read much more than that. You shouldn’t invest in what you can’t understand, but remember that we are here to help if you have any questions.
- Request a Syndication Participation Agreement. What is a syndicate? A syndicate is “a group of persons or concerns who combine to carry out a particular transaction.” In other words, it is the group of people funding a transaction. In includes Union CSG and the other investment partners.
- Return the executed Syndication Participation Agreement to us.
- Decide on an Initial Participation Amount and a transaction to fund.
- Fund your participation via wire transfer.
 
Educational Material
 
In evaluation opportunities, you may find the following educational material interesting:
Here is a whitepaper that discusses why someone may be interested in investing in a working capital advance: Whitepaper — A Case for Working Capital Syndication
This case study on working capital from the investor’s view is a companion to the case study from the merchant’s view. It discusses how investor partners pool their money in a working capital transaction: Case Study — The Syndicator View of Working Capital
We won’t advocate losing God, and suggest that additional profit may be obtained with less debauchery, but the true story of how others have done it before it very interesting. These guys started their company with $1mm in 2012 and sold it in February 2015 for $60mm (including bonuses). We think you will find that incredible: How Two Guys Lost God and Found $40 Million – Bloomberg
We sometimes refer to this as the “We Don’t Need Yo Money No Mo” article. It addresses the difficult theme of due diligence. In the investment banking industry, where our principles have much experience, there are extensive due diligence cycles when raising capital. Working capital is the opposite. Logic dictates that any firm that achieves anywhere close to the industry return average will have such high returns that they quickly won’t need — or even want — investor participation capital. Once they have the track record, they will have already earned enough to not bother with investors. Working capital requires getting comfortable with the firm and its leaders since it will be too late by the time there is a lengthy track record: So You Want to Participate — Merchant Cash Advance Syndication_ Crowdfunding 2page_ _ deBanked
Another interesting article on the volume some reps are producing. It isn’t rocket science to calculate the commissions and returns on deal size: The Closer – Meet the Yellowstone Capital Rep That Originated $47 Million in Deals Last Year _ deBanked
This Bloomberg article discusses how advances work: Bloomberg_How Merchant Cash Advances Work
This article from Entrepreneur Magazine discusses an appropriate use of a working capital advance: Entrepreneur Magazine Case Study_ How a Merchant Cash Advance Worked in a Pinch