What is a Balloon Payment Investment?
This is a secured investment where you receive fixed monthly interest payments at a 12% APR, and your full principal is returned in one lump sum at the end of the term. In structure, it’s similar to a convertible note—with added security and predictable returns.
How does the 12% APR work?
You earn 12% annually on your principal, paid out in equal monthly interest payments. For example, on a $50,000 investment, you would receive $500 per month in interest income, totaling $6,000 per year.
When do I receive interest payments?
Interest payments begin within 30 days of your investment being accepted. They are paid monthly for the full duration of your investment term.
When is the principal returned?
Your entire principal is returned at the end of the investment term. If the term is 12 months, for example, you’ll receive monthly interest for 12 months, and your full principal back on the 12th month.
Why might I choose this option over the Full Payment Plan?
This plan is ideal for investors who prefer higher returns and want their capital to remain untouched during the term. It offers a more attractive APR than the Full Payment Plan and resembles a convertible note structure, with the added benefit of monthly cash flow and asset-backed security.
What happens if I want to withdraw early?
Early withdrawal is not guaranteed. However, in special cases, we may allow early exit by liquidating or replacing the collateral assigned to your investment. Any early termination would be subject to approval and potential adjustments to earned interest.
What is the equity option at the end of the term?
At the end of your term, you may have the opportunity to convert your investment into equity in LuxLux at a favorable valuation. This optional conversion is similar to how convertible notes work, giving you a path to ownership if you're interested in participating in the company’s long-term success.
What are the risks involved? What makes this offer secure?
All investments carry risk. What makes this offer different is that it’s secured by physical luxury inventory—designer handbags and fine jewelry that retain resale value. Each investment is assigned specific collateral that exceeds the value of the investment, offering asset-backed protection in case of default.
Can I split my investment across both plans?
Yes. You can divide your investment between the Balloon Payment and Full Payment plans to balance higher returns with monthly principal repayment. Just let us know how you’d like to structure it during the submission process.
