There is no such thing as a universal ‘best’ investment—investors can have a wide variety of goals that they want to achieve. That’s why it’s essential that investors have exposure to the asset classes and structures that are best suited for them.
At Lion, we have two distinct investment models on offer, so you can select the one that best aligns with your goals. We call the first one ‘End Payment’ and the second one ‘Passive Income’.
End Payment, as the name suggests, provides returns to investors as a single lump-sum at the end of the project. If you invest $100,000 into a project with a term of two years and a return of 30 percent, at the end of the two years you’d get your $100,000 back, plus a return of $30,000 on top of that.
This payment structure gives us more flexibility as a developer and helps maintain liquidity within the project during the investment term. As a result, we offer a higher return to investors who select this option. So if your focus is on long-term wealth, this is the better option for you.
On the other hand, the Passive Income model provides investors returns in regular, fixed distributions throughout the entire investment term, and their capital is returned at the end of the term. For example, if you invest $100,000 into a project with a term of one year and a return of 1 percent per month, you’d receive $1,000 each month and then get your $100,000 back at the end of year.
However, having to make monthly distributions places a higher financial burden on the project, so as a result we can only offer a lower return in comparison to the End Payment model. If your focus is less on the long-term, and more about improving your current quality of life and income, the Passive Income model is a great option.
If you haven’t already done so, it’s worth discussing your investment goals with a trusted financial professional, to clarify which types of investment products are worth your attention. ∎
