Monthly Distributions, Explained: How We Pay Investors Like Clockwork

When you invest in a private debt fund like LBC Capital Income Fund, LLC, you’re not just hoping for long-term appreciation—you’re looking for something tangible. Regular, predictable income. Money that shows up every month, without drama.

We get it. For many of our investors—retirees, income-focused families, or professionals building a passive income stream—that monthly payout isn’t just a nice-to-have. It’s a key part of your financial strategy.

That’s why monthly distributions aren’t an afterthought for us. They’re built into the foundation of how we operate as a monthly income fund.

Let’s break down how it all works.

Why Monthly Income Matters

Plenty of investment options out there promise growth. Fewer deliver reliable, passive income with monthly payouts. And even fewer do it without tying your money up in wild speculation or high-risk bets.

That’s where income-producing debt funds stand out—especially in today’s high-rate environment.

At LBC Capital Income Fund, LLC, we pool investor capital and lend it out via short-term, asset-backed loans to carefully vetted borrowers. Those borrowers pay us monthly interest. We, in turn, pay that interest back to you—in cash, on a monthly schedule.

This simple structure creates consistency. And for income-focused investors, consistency is king.

Who Benefits from Monthly Payouts?

Our monthly distribution model attracts a range of investors, but it’s especially well-suited to:

• Retirees looking for income to supplement pensions or Social Security
• Professionals building a passive income stream while still working
• Real estate investors who want exposure to property-backed assets without the headaches of property ownership
• Trusts, IRAs, and family offices that need steady cash flow to meet obligations or distribute to beneficiaries

When income is your priority, timing matters. Getting paid once a quarter—or worse, once a year—doesn’t always align with real-life cash flow needs. Monthly payouts help smooth that out.

How the Distribution Process Works

So how exactly does LBC Capital Income Fund, LLC manage monthly distributions?

Here’s the basic flow:

1. Borrowers make monthly interest payments
   Our borrowers pay interest on their loans every month—this is written into every deal we fund.
2. We collect and pool those payments
   Interest payments are collected across our portfolio. Because we focus on short-term loans (typically 6–18 months), that cash flow stays active and liquid.
3. Investors receive monthly distributions
   Once payments are processed, we issue investor payouts on or around the 15th of each month—like clockwork.
4. You choose what happens next
   Want to reinvest? We’ll add it to your principal. Prefer to receive the money in cash? It’ll be in your account, ready to use.

It’s predictable. It’s straightforward. And it’s repeatable—month after month.

But What Happens When a Loan Misses a Payment?

Good question. No portfolio is perfect. Sometimes a borrower pays late or a loan gets extended. That’s where portfolio construction and risk controls come in.

Because we lend across many deals and borrowers, no single loan can derail monthly income for everyone. The interest payments from performing loans continue to flow—and our reserve strategies help smooth over short-term bumps.

The goal? Protect your monthly income, even when things get noisy in the background.

What Kind of Returns Are We Talking About?

At the time of writing, LBC Capital Income Fund, LLC targets an 8–10% annualized return, paid out monthly. That breaks down to around 0.66%–0.83% each month, depending on your investment size and fund structure.

Compare that to the current national average savings account rate (still hovering under 1%), and the value becomes clear.

You get exposure to real estate-backed assets—without needing to manage tenants, track property taxes, or worry about repairs—and you get passive income, delivered monthly.

Transparency and Tax Reporting

Every month, you’ll receive a breakdown of your distribution—what you earned, how much was paid, and your updated balance. No guesswork, no delays.

And come tax season, you’ll get a 1099-INT or 1099-DIV, depending on your structure. Our accounting team is always available to help your CPA interpret it, and our statements are clean and straightforward.

What Sets Our Monthly Income Fund Apart?

There are plenty of funds offering income, so what makes LBC Capital Income Fund, LLC’s approach different?

• We lend conservatively
  Our loans are backed by real assets, typically at low loan-to-value ratios. That’s key to protecting your income stream.
• We keep things short-term
  Our average loan duration is under 18 months. That keeps cash flowing and limits long-term exposure to market shifts.
• We have real skin in the game
  Our team is invested alongside you. That means our incentives are aligned with yours—we want those monthly payouts just as much as you do.
• No fluff, no surprises
  We’re not using gimmicks or high-risk bets to fund distributions. What you see is what you get: a clean, income-focused strategy backed by disciplined lending.

Ready to Turn Capital into Cash Flow?

A monthly income fund like ours isn’t a get-rich-quick scheme. It’s a get-paid-regularly plan. It’s for people who want to turn their capital into reliable, passive income—without managing properties or timing the market.

Whether you’re retired, semi-retired, or just tired of inconsistent returns, monthly distributions can offer the clarity and confidence you need.

At LBC Capital Income Fund, LLC, our goal is simple: keep your money working, keep your income flowing, and keep your experience as smooth and transparent as possible. Book your call with our Fund Manager.