Support the Small Businesses You Care About.

Earn a potential return by allowing small businesses you care about to use your investment for short term cash flow needs.

Benefits for Investors

Diversified Investment in Small Businesses We Care About
Investors co-invest with business owners within a Cluster, gaining firsthand knowledge of the businesses and choosing to support them.

Focus on Working Capital
The #2 reason small businesses fail is because they run out of cash. This fund focuses on solving that problem and generating a return for investors.

Attractive Returns Potential
Investing in a Cluster provides investors with the opportunity to earn competitive returns while supporting small businesses within their chosen demographic or geographic community.

Liquidity
This investment is a security that offers opportunities for passive income, with the flexibility to redeem funds periodically if liquidity is a priority.

Support the Small Businesses We Care About.

Frequently Asked Questions

Common questions answered.

What is a ClusterFund?

ClusterFunds are private lending funds designed to provide structured investment opportunities. They offer short-term loans and invoice factoring to small businesses that are members of the fund.

How does a ClusterFund work?

The fund pools capital from investors and lends it to business owners who are Class A Members. Investors (Class B Members) provide funding in exchange for potential returns, while the fund manager oversees lending decisions and fund deployment.

Who can participate in a ClusterFund?

There are two types of participants. Class A Members are small business owners who seek working capital through short-term loans. Class B Members are supporters of those small business owners who invest capital passively in exchange for potential returns.

How do investors make money by investing in a ClusterFund?

Investors earn potential returns through interest payments from Class A borrowers which are designed to increase the Net Asset Value of the units of each Class B investor. Class B investors may sell or transfer their units at the prevailing Net Asset Value at the end of the three-year lock-up period.

What are the tax implications of investing?

Investors may receive taxable income from interest payments, and financial statements are provided annually to assist with tax reporting

What are the loan terms?

Loan amounts vary depending on approval requirements and available funds. Interest rates and repayment schedules are set based on predefined terms in the Operating Agreement by the Members themselves. Loan maturity periods are typically less than 90 days.

What happens if a business is unable to repay the loan?

Potential loan defaults negatively impact the fund. The fund manager enforces repayment terms as outlined in the loan agreement. Small business owners' defaults will impact the return on investment in the ClusterFund and that of their fellow Class A business owners, who are also investors.

How long do I need to commit my funds?

Both Class A and Class B Members are subject to a three-year lock-up period before they can request redemption of their investment.

Do investors have any control over lending decisions?

No, Class B Members are passive investors in the ClusterFund. Most fund management and lending decisions are made by the Manager and the Class A members. There are some exceptions for larger loans that require approval by the Class B investors defined in the Operating Agreement.

Why does the Cluster focus on invoice factoring and short-term loans?

Running out of cash is the second most common reason small businesses fail, with the lack of market demand being the first. Utilizing invoice factoring and having readily available short-term loans can greatly reduce the risk of cash flow shortages leading to business failure.

Do I have voting rights as an investor?

No. Class B Members do not have voting rights.

Is this a regulated investment?

Class A and Class B units of the ClusterFund are private placement securities sold under the Regulation D 506(b) exemption from registration.

Can I sell my ownership in ClusterFund?

Class A Members cannot transfer their units for the first three years. After three years, members may request redemption, subject to financial conditions and manager approval.

How do I invest?

Investments are made through the Folla Capital, LLC, an SEC-registered broker-dealer, where investors complete an investment questionnaire and sign a Subscription Agreement. The documents include a Private Placement Memorandum, which provides important disclosures and detailed risk information regarding an investment in the ClusterFund offering.

Contact Us

inquiry@cashflowcluster.com

3722 Shipyard Boulevard, Suite E, Wilmington, NC 28403

Folla Consulting Services LLC (“Folla Consulting Services”) is a consulting and technology services firm affiliated with Folla Capital, LLC. Folla Consulting Services is not a registered broker-dealer. This website is operated by Folla Consulting Services. Certain sections of the website may be used by Folla Capital, LLC, an SEC-registered broker-dealer and member of FINRA, to conduct securities offerings. Any capital raised by any ClusterFund is offered exclusively through Folla Capital, LLC. Neither Folla Consulting Services nor Folla Capital, LLC provides investment advice or makes investment recommendations; nothing on this website should be construed as such.