Investment Policies

Anabaptist Financial believes that money reinvested in the kingdom of God is both a secure and productive investment. The overarching principle guiding our investments is to enhance financial fellowship by facilitating mutual aid with mutual gain within the brotherhood.

To achieve mutual aid fellowship, Anabaptist Financial limits participation to Anabaptist people committed to biblical truths, as defined in the 1963 Mennonite Confession of Faith or earlier similar confessions.

The loans program offers loans for business real estate, business operations, and home mortgages. We do not offer consumer loans, such as those for automobiles and consumer items. Through the loan application process, Anabaptist Financial measures risk factors and determines the integrity and financial ability of the individual or organization.

Types of Invested Funds

Anabaptist Financial can invest cash investments and IRA investments.

Adjusted Interest Rate

60-Day Rate (Long-Term Accounts): This account option is intended for funds invested one year or longer.  Anabaptist Financial will pay interest on the amount invested, as well as any interest that has been added to the investor's account at a variable rate equal to the six-month Treasury bill as published in The Wall Street Journal, plus 1.5 percent (adjusted within one half of one percent). Adjustments to the variable interest rate occur quarterly on January 1, April 1, July 1, and October 1 of each calendar year. A floor rate of 3.0 percent protects investors from extremely low interest rates.

Demand Rate (Short-Term Accounts): This account option is intended for funds invested less than one year.  Anabaptist Financial will pay interest on the amount invested, as well as any interest that has been added to the investor's account at a variable rate equal to the six-month Treasury bill as published in The Wall Street Journal, minus 0.5 percent (adjusted within one half of one percent). Adjustments to the variable interest rate occur quarterly on January 1, April 1, July 1 and October 1 of each calendar year.  A floor rate of 1.25 percent protects investors from extremely low interest rates.

Quarterly Interest Accrual

Investors can choose whether to have their interest added to their investment account quarterly, or to have the interest paid to them quarterly.

Minimum Investment

A minimum investment of $2,500 is necessary to establish an investment account. Additional investments may be made thereafter in amounts of $1,000 or greater.

Withdrawals

If the 60-Day Rate is chosen, Anabaptist Financial will repay the principal amount and all accrued and unpaid interest within 60 days after a written withdrawal request from the investor is received. Frequent withdrawals are discouraged.

Reserve Fund

To meet repayment obligations to investors, Anabaptist Financial maintains a reserve fund with a minimum amount of $2.5 million.

Loan Loss Reserve Fund

To protect investors from the impact of a borrower unable to repay a loan, Anabaptist Financial maintains a Loan Loss Reserve fund from retained earnings.

Private Lending and Loans

In addition to serving investors, Anabaptist Financial functions as a third-party facilitator when assisting lenders and borrowers in a private loan arrangement. AF produces the loan documents and offers third-party counsel. In addition, AF can file a mortgage or lien, if desired. The lender determines the loan parameters and assumes all the risk; AF does not provide security of private notes. Loan payments are made directly to AF and can be linked to an investment account in the pool. Note: Private lenders are not protected with the security of the investments within the investment pool.