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What Is a Bond?

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Cash Flow Asset Bonds

Learn • Cash Flow Bonds

What Is a Bond?

A bond starts with a simple idea: you lend money to an issuer, and the issuer promises to repay you with interest.

A bond is a loan to a company or government. When you provide the money, the issuer agrees to pay interest and return your original investment under the bond’s terms.

Three words worth knowing

Principal
The amount you invest.
Interest
What the issuer agrees to pay for borrowing your money.
Maturity or repayment terms
The rules for when and how your principal is due back.

Bonds can work differently

Some pay interest into your account on a schedule. Others let interest build within the investment. Some trade on a market, where their selling price can rise or fall. Others have no active market and rely on the issuer’s repayment process.

Buying a bond does not give you ownership of the issuer. It also does not guarantee that the issuer can pay. That is why the borrower, payment terms and risks matter as much as the advertised rate.

Where Cash Flow Bonds fit

Cash Flow Bonds are unsecured promissory notes issued by PIC Diversification Fund, LLC. Your claim is against the issuer; you do not own a piece of a particular property or business loan.

They are investments, not bank deposits, and are not FDIC-insured. You could lose some or all of your investment.

Next: compare bond types →

Sources and further reading

Back to learning

Your next chapter starts small

Make room for what matters.

Open to everyday investors. Start with just $10*.

Start earning 7.0%

Terms and risks

I like looking beyond the balance. Your investment helps fund real estate and small businesses in our communities.

Small beginnings.
Meaningful possibilities.

© 2026 Cash Flow Bonds. Securities issued by PIC Diversification Fund, LLC.

Important investment information

Offering documents. Securities are offered by PIC Diversification Fund, LLC pursuant to Regulation A under the Securities Act of 1933, as amended. Review the offering circular included in the qualified offering statement and any applicable supplements, including the risk factors, terms and eligibility requirements, before investing. Read the offering circular.

No SEC endorsement. The SEC does not pass upon the merits of or give its approval to the securities or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. The securities are offered pursuant to an exemption from registration with the SEC; however, the SEC has not made an independent determination that the securities are exempt from registration. Qualification is not approval or a guarantee of the investment.

Investment risks and costs. Cash Flow Bonds are unsecured promissory notes issued by PIC Diversification Fund, LLC. They are not bank deposits, are not FDIC-insured and are not guaranteed by the U.S. government. Investing involves risk, including possible loss of all principal. Collateral supporting an underlying loan does not secure your bonds. There is no public trading market for the bonds. A fixed interest rate does not guarantee repayment. Eligibility and applicable investment limits apply.

* Investor processing fee. A 1% investor processing fee applies in addition to the amount invested ($10.10 total for a $10 investment).

Access to funds. The terms provide no lockup or redemption penalty. Repayment is normally due within 30 days following a valid written demand, subject to the offering terms and available funds; delays and losses are possible. Complete, valid requests are processed in the order received as liquidity becomes available. Payments can take longer than 30 days. This is not immediate or guaranteed access to money. Read the offering circular for the complete redemption procedures, limitations and risks. Daily compounding does not mean interest is paid to your bank account every day.

Illustrations and calculator. Life goals are examples, not promised outcomes or recommendations. The calculator illustrates one starting investment, with optional additional investments and no withdrawals, using 7.0% annual interest divided by 365 and compounded over illustrated invested days. Additional investments are assumed at the end of each selected period: monthly after the first month and every month thereafter, quarterly after the first three months and every three months thereafter, or yearly after the first twelve months and every twelve months thereafter. An addition at the selected endpoint is included in the illustrated balance and total invested but has not yet earned interest. Month selections use 365 days divided by 12 per month, rounded to the nearest whole day; 12 months equals 365 invested days. Calendar dates may produce different day counts. The same illustrative interest rate is applied to future additions; this is not a promise that future investments will be available or offered on the same terms. Displayed balances and gross interest exclude the 1% processing fee and taxes and assume all interest is paid and retained. Gross interest excludes both the starting investment and all additional invested principal. The fee earns no interest and is paid in addition to the principal; the calculator excludes any repayment waiting period. For example, a one-time investment of $1,000 of principal requires an initial payment of $1,010 and illustrates a $1,072.50 balance after 365 invested days, a $62.50 gain after the processing fee and before taxes. This calculator does not schedule payments or set up automatic investing. This is an illustration, not a prediction or guarantee. Actual dates and outcomes may differ.

Age and goal-planning illustrations. Ages are approximate labels based on a whole age entered by the visitor, not exact birthdays or investor eligibility checks. Age labels do not change the interest calculation. The travel planner uses visitor-entered costs and a zero-return savings baseline. It does not provide live travel quotes, book travel, schedule payments or recommend an investment for a fixed-date expense. Do not assume bond redemption proceeds will be available for a trip date. These calculator inputs are not intentionally stored or submitted by the calculator.

Website information and forward-looking statements. Website content is general information, not individualized investment, legal or tax advice. Statements about plans, anticipated outcomes and community impact reflect expectations and assumptions, not guarantees; actual results may differ materially. Website summaries do not replace the applicable offering documents. Nothing here waives rights under applicable securities laws.

Website terms and privacy. Review our Terms of Service and Privacy Policy. Contact and onboarding services have separate privacy notices and consent controls; viewing this page does not by itself provide marketing consent.

Skip to content
Cash Flow Asset Bonds

Learn • Cash Flow Bonds

What Is a Bond?

A bond starts with a simple idea: you lend money to an issuer, and the issuer promises to repay you with interest.

A bond is a loan to a company or government. When you provide the money, the issuer agrees to pay interest and return your original investment under the bond’s terms.

Three words worth knowing

Principal
The amount you invest.
Interest
What the issuer agrees to pay for borrowing your money.
Maturity or repayment terms
The rules for when and how your principal is due back.

Bonds can work differently

Some pay interest into your account on a schedule. Others let interest build within the investment. Some trade on a market, where their selling price can rise or fall. Others have no active market and rely on the issuer’s repayment process.

Buying a bond does not give you ownership of the issuer. It also does not guarantee that the issuer can pay. That is why the borrower, payment terms and risks matter as much as the advertised rate.

Where Cash Flow Bonds fit

Cash Flow Bonds are unsecured promissory notes issued by PIC Diversification Fund, LLC. Your claim is against the issuer; you do not own a piece of a particular property or business loan.

They are investments, not bank deposits, and are not FDIC-insured. You could lose some or all of your investment.

Next: compare bond types →

Sources and further reading

Back to learning

Your next chapter starts small

Make room for what matters.

Open to everyday investors. Start with just $10*.

Start earning 7.0%

Terms and risks

I like looking beyond the balance. Your investment helps fund real estate and small businesses in our communities.

Small beginnings.
Meaningful possibilities.

© 2026 Cash Flow Bonds. Securities issued by PIC Diversification Fund, LLC.

Important investment information

Offering documents. Securities are offered by PIC Diversification Fund, LLC pursuant to Regulation A under the Securities Act of 1933, as amended. Review the offering circular included in the qualified offering statement and any applicable supplements, including the risk factors, terms and eligibility requirements, before investing. Read the offering circular.

No SEC endorsement. The SEC does not pass upon the merits of or give its approval to the securities or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering circular or other solicitation materials. The securities are offered pursuant to an exemption from registration with the SEC; however, the SEC has not made an independent determination that the securities are exempt from registration. Qualification is not approval or a guarantee of the investment.

Investment risks and costs. Cash Flow Bonds are unsecured promissory notes issued by PIC Diversification Fund, LLC. They are not bank deposits, are not FDIC-insured and are not guaranteed by the U.S. government. Investing involves risk, including possible loss of all principal. Collateral supporting an underlying loan does not secure your bonds. There is no public trading market for the bonds. A fixed interest rate does not guarantee repayment. Eligibility and applicable investment limits apply.

* Investor processing fee. A 1% investor processing fee applies in addition to the amount invested ($10.10 total for a $10 investment).

Access to funds. The terms provide no lockup or redemption penalty. Repayment is normally due within 30 days following a valid written demand, subject to the offering terms and available funds; delays and losses are possible. Complete, valid requests are processed in the order received as liquidity becomes available. Payments can take longer than 30 days. This is not immediate or guaranteed access to money. Read the offering circular for the complete redemption procedures, limitations and risks. Daily compounding does not mean interest is paid to your bank account every day.

Illustrations and calculator. Life goals are examples, not promised outcomes or recommendations. The calculator illustrates one starting investment, with optional additional investments and no withdrawals, using 7.0% annual interest divided by 365 and compounded over illustrated invested days. Additional investments are assumed at the end of each selected period: monthly after the first month and every month thereafter, quarterly after the first three months and every three months thereafter, or yearly after the first twelve months and every twelve months thereafter. An addition at the selected endpoint is included in the illustrated balance and total invested but has not yet earned interest. Month selections use 365 days divided by 12 per month, rounded to the nearest whole day; 12 months equals 365 invested days. Calendar dates may produce different day counts. The same illustrative interest rate is applied to future additions; this is not a promise that future investments will be available or offered on the same terms. Displayed balances and gross interest exclude the 1% processing fee and taxes and assume all interest is paid and retained. Gross interest excludes both the starting investment and all additional invested principal. The fee earns no interest and is paid in addition to the principal; the calculator excludes any repayment waiting period. For example, a one-time investment of $1,000 of principal requires an initial payment of $1,010 and illustrates a $1,072.50 balance after 365 invested days, a $62.50 gain after the processing fee and before taxes. This calculator does not schedule payments or set up automatic investing. This is an illustration, not a prediction or guarantee. Actual dates and outcomes may differ.

Age and goal-planning illustrations. Ages are approximate labels based on a whole age entered by the visitor, not exact birthdays or investor eligibility checks. Age labels do not change the interest calculation. The travel planner uses visitor-entered costs and a zero-return savings baseline. It does not provide live travel quotes, book travel, schedule payments or recommend an investment for a fixed-date expense. Do not assume bond redemption proceeds will be available for a trip date. These calculator inputs are not intentionally stored or submitted by the calculator.

Website information and forward-looking statements. Website content is general information, not individualized investment, legal or tax advice. Statements about plans, anticipated outcomes and community impact reflect expectations and assumptions, not guarantees; actual results may differ materially. Website summaries do not replace the applicable offering documents. Nothing here waives rights under applicable securities laws.

Website terms and privacy. Review our Terms of Service and Privacy Policy. Contact and onboarding services have separate privacy notices and consent controls; viewing this page does not by itself provide marketing consent.

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