Is This Company Outpacing The Competition As The Best Place For Loans And Investments?

Is This Company Outpacing The Competition As The Best Place For Loans And Investments?

Cultivating a culture of saving or investing can help guarantee a comfortable financial future.

As simple as it may sound, however, stashing away money or an asset for future profit can be a daunting habit to attain because it usually requires some sacrifice.

As the global economy continues to suffer due to a series of predicaments such as the COVID-19 pandemic, the Russia-Ukraine war and high inflation, investing could help cushion shocks as the economic crisis continues.

Types Of Investments

For anyone keen on investing, it might be prudent first to consult a financial advisor to guide and help you figure out which investment type can help meet your financial goals.

The advisor may introduce you to popular investment options such as stocks, bonds, mutual funds, index funds, exchange-traded funds (ETFs) and options.

You can also borrow to invest over the long term — through margin loans for shares or investment property loans. A margin loan lets you borrow money to invest in shares, ETFs and managed funds.

When it comes to where you could go for such loans, a few names come up — like Manhattan Bridge Capital Inc. LOAN, Oxford Square Capital Corp. OXSQ, U.S. Global Investors Inc. GROW and Mill City Ventures III Ltd. MCVT.

A Different Kind Of Lender?

Unlike some other players in the industry, Mill City specializes in investments in debt and equity securities of public and private companies looking to fund operations, whether for starting up, acquiring another company or fuelling growth.

Founded in January 2006, the company reports that it primarily focuses on investing in, lending to and making managerial assistance available to privately held and publicly traded companies.

Over the years, Mill City notes that it has provided non-bank lending and specialty finance to companies and individuals on both a secured and unsecured basis. The primary specialty finance solutions the company offers are high-interest, short-term lending arrangements.

Designed for individuals, business owners, real estate owners, house redevelopers and small business owners, the company’s lending arrangements occasionally involve the company obtaining collateral as security for the borrower’s repayment of funds.

The loans the company provides typically have maturities ranging from nine to 12 months and may involve a pledge of collateral or, in the case of loans made to companies, personal guarantees by the borrower’s principals.

Nature Of Lending Operations

  • Non-bank lending and specialty finance
  • Asset-backed loans
  • Settled claim purchases
  • Tax anticipation loans
  • Real estate bridge loans
  • Litigation finance
  • Public market companies
  • Title loans
  • Opportunistic acquisitions
  • Mortgages

Since commencing non-bank lending operations in January 2020, its average loan size and weighted rate trajectory have increased year over year. This change resulted from the company’s focus on making higher-dollar loans that usually have additional features such as the quality of the borrower and collateral levels.

Key Investment Considerations

  • Management has experience in entrepreneurial ventures and finance.
  • The company is not subject to many of the regulatory limitations that govern other traditional lenders or institutional competitors.
  • Mill City runs on lean operating costs, which allows for greater income statement leverage.
  • Management continually focuses on moving the blended portfolio returns up and to the right in the context of proper risk mitigation.
  • The company takes advantage of inorganic growth opportunities in the market through complementary and accretive acquisitions.

For a bespoke lender that provides custom and tailored lending to meet a customer’s needs, Mill City could have an advantage over competitors, with a significant driver being that it is not subject to many of the regulatory limitations that govern traditional lenders or institutional competitors.

Read more about Mill City Ventures at millcityventures3.com.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Featured Photo by Tinnakorn jorruang on Shutterstock

Posted In: Mill CityPartner ContentFintechPenny StocksGeneral
Fintech Focus Newsletter

Your update on what’s going on in the Fintech space. Keep up-to-date with news, valuations, mergers, funding, and events. Sign up today!