How you make money
Cash flow
A factor return, fixed at funding, paid as the borrower pays
The return is a fixed factor set the day the participation funds: total repayment over the term if the loan performs. It does not depend on the borrower's trading or operating results, and the borrower owes the loan regardless. Payment is not guaranteed.
Monthly
Distributions
2 mo
First distribution
How the offering works
Most private credit pays a variable return that depends on how a fund performs. This is a participation in a single loan at a factor fixed the day it funds: 1.18× over a 12-month term, paid as the borrower pays. Payment is not guaranteed, but the borrower owes the loan regardless of how its own business performs.
You fund a participation in one specific loan
Capital is committed toward a specific loan Lend Capital has originated. Lend Capital underwrites each facility in-house, including a review of the borrower's financial statements, and is the lender of record. It does not operate a fund.
The factor is fixed the day the loan funds
The participant return is a 1.18× factor, fixed at funding, over a standard 12-month term: total repayment if the loan performs. A longer term does not increase the factor. Lend Capital is paid by the spread between the borrower's rate and your return; no management fee is charged to participants.
You are paid as the borrower pays
Payments begin two months after funding: ten monthly payments of the factor return, then your participation is returned at the end of the term if the borrower repays in full. Participants receive a monthly distribution statement and a quarterly loan status summary.
If the borrower defaults, distributions stop
Recovery then depends on enforcement against the borrower. Its timing and amount cannot be predicted: it may be partial or nil, and may take 12 to 24 months. Participations are recorded on Lend Capital's books and are not held in a segregated or bankruptcy-remote structure.
About the sponsor
20+
Years of combined team experience
~$150M
Combined career originations across the team
Lend Capital originates and services loans in which participations are offered. It underwrites each facility in-house, including review of borrower financial statements, and is the lender of record; it does not operate a fund. Lend Capital is compensated by the spread between the borrower's contracted rate and the return paid to participants; no separate management fee is charged to participants.
Lend Capital began commercial lending in 2024. No participant losses to date.
George B. Shumate Jr.
Co-Founder & Principal
Leads strategic growth, capital structuring and investor relations across the Lend Capital platform. Works at the intersection of real estate, capital markets and business operations. Previously Owner and Chief Sales Officer of MediSmart Solutions and CAP Medical; Regional Supervisor at Stryker ProCare.
Ryan T. McCabe
Co-Founder & Principal
Two decades across retail banking, mortgage brokerage and commercial finance. BBA in Finance, Mays Business School, Texas A&M University. Owns and operates independent residential mortgage and commercial finance companies.
What you should know
What are the risks?
- Loss of principal. Returns are not guaranteed. You may lose some or all of the amount you commit.
- No direct claim. You invest through Lend Capital and have no direct claim on the borrower or its collateral.
- No liquidity. There is no secondary market and no redemption right. A participation must be held to maturity.
- Single-borrower concentration. Repayment depends on the performance of one borrower.
- Lend Capital insolvency. If Lend Capital fails or ceases servicing, distributions stop, and participants may rank as general unsecured creditors of Lend Capital rather than holding a direct claim against the borrower.
- Priority. Participations rank equally with one another in the same loan and are not subordinated to any interest retained by Lend Capital.
- Conflicts of interest. Lend Capital sets the terms, retains the spread, services the loan, and decides whether and when to enforce.
- Term risk. Where a participation runs longer than 12 months, the factor does not increase, so the effective annual return falls as the term lengthens.
- Tax treatment depends on your own circumstances. Consult your own tax advisor.
What return do I receive?
A 1.18× factor, fixed at the time your participation is funded. That is the total repaid over the term if the loan performs: a $200,000 participation returns $236,000 over twelve months. It is a fixed loan return, not a forecast, and a longer term does not increase it. Payment is not guaranteed and depends on the borrower performing.
Who can participate?
Accredited investors whose status Lend Capital has verified under Rule 506(c) of Regulation D. The standard minimum participation is $200,000; other amounts can be accommodated case by case, with additional accreditation verification below $200,000.
When and how often am I paid?
Monthly. Payments begin two months after funding: ten monthly payments of the factor return, then your participation is returned at maturity. On a $200,000 participation, that is ten payments of $3,600, then $200,000 back at the end of the term. Participations fund on the 1st or the 15th of the month. Distributions are made as and when the borrower pays.
What happens at maturity?
Your participation is returned at the end of the term if the borrower repays in full. It can be renewed for a further term if the borrower consents. Renewal is not automatic and is not guaranteed.
Who is the borrower?
Commercial and operating-business borrowers. Individual borrowers are not named. Lend Capital underwrites and services each loan and remains the lender of record. The majority of its lending is currently in Texas, Wyoming and Florida, but it is not limited to those states.
What am I actually holding?
A participation in a loan, recorded on Lend Capital's books. Collateral for the loan is held by Lend Capital as lender. Participants have no direct claim on it and cannot require Lend Capital to exercise loan rights such as call rights or enforcement.
Are the loan terms my contractual rights?
No. Collateral, grace period, late fee, default rate, call rights and reporting are terms of the loan between Lend Capital and the borrower. They are not contractual rights of the participant, and participants cannot require Lend Capital to exercise them.
How is Lend Capital compensated?
By the spread between the borrower's contracted rate and the return paid to participants. No separate management fee is charged to participants.
Can I get my money out early?
No. There is no secondary market and no redemption right. A participation is held to maturity.
Do I need to live in a particular state?
No. A participant in any US state can take part, including in a loan made to a borrower in another state. State licensing limits apply to where Lend Capital lends, not to who can participate.
