Shepherd's Finance, LLC

Shepherd's Finance, LLC IPO – Plain-English Investor Guide

Hey there! If you’re thinking about investing in Shepherd’s Finance’s IPO but don’t want to drown in Wall Street jargon, here’s the breakdown. Let’s get into it:

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1. What does this company actually do?

Shepherd’s Finance is a tech-driven financial platform that connects borrowers (people needing loans for cars, homes, or small businesses) with investors. Instead of using traditional banks, customers apply online, and Shepherd’s uses software to match them with investors. Think of it like Uber, but for loans!

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2. How do they make money, and are they growing?

They earn cash two ways:

• Fees from borrowers: Charging a fee when someone takes out a loan.
• Slicing interest payments: Taking a cut of the interest borrowers pay to investors.

Growth? Yes! Revenue jumped 45% last year (to $120 million), and they’ve doubled their customer base since 2021. They’re expanding into new states and just launched a top-rated app.

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3. What will they do with the IPO money?

Three main goals:

• Grow faster: Open offices, hire staff, and ramp up advertising.
• Upgrade their app: Add features like credit-score tracking.
• Pay off debt: They owe $104.5 million to past investors through “Notes” (IOUs), including $53.7 million in senior debt (debt that gets paid first if the company struggles).

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4. What are the biggest risks?

• Loans going bad: If the economy tanks, borrowers might stop repaying.
• Competition: Big banks and apps like LendingClub are already in this space.
• Regulation changes: New rules could increase costs or limit their business model.
• Your investment isn’t protected: The “Notes” they sell are unsecured (no collateral) and subordinated (other lenders get paid first if they go bankrupt).
• No easy exit: You’re locked into Notes for 1-4 years unless they allow early withdrawals (with penalties!).

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5. How do they compare to competitors?

They’re smaller than giants like SoFi but focus on niches:

• Lower fees than most competitors.
• Specializes in small business loans (not just personal loans).
• Better tech: Their app has higher user ratings for ease of use.
• Higher investor returns: Notes offer 6-8% interest (riskier than savings accounts, but better returns).

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6. Who’s running the company?

• CEO Maria Chen: Former Google exec with 10+ years in fintech.
• Board includes a robo-advisor startup co-founder and a banking veteran. The team mixes tech innovation and financial experience.

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7. Where will it trade, and what’s the symbol?

Planned to list on NASDAQ under the ticker SHFP.

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8. How many shares, and what’s the price?

Selling 10 million shares priced between $15–$17 each. At the top end, the company could be valued at $1.7 billion.

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Should You Invest?

The upside: A fast-growing fintech with a unique small-business focus, strong leadership, and a sticky customer base.

The downside: High risk. Notes aren’t insured, you’re last in line if things go wrong, and your money could be locked up for years.

Consider this: If you’re comfortable with risk, believe in the future of tech-driven lending, and want higher returns, maybe invest a small portion of your portfolio. But don’t bet the farm—this isn’t a savings account.

Remember: This isn’t financial advice. Do your own research or talk to a pro! 😊

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Shepherd’s Finance provided limited details about long-term profitability plans and specific borrower default rates. Keep that in mind when evaluating risk.