To combat rising inflation, the Fed has raised rates several times over this year, from 0.25% to 1%.
Many standard investments like stocks, bonds, mutual funds, exchange-traded funds (ETFs) and some real estate investments fail to offer yields that keep up with record-high inflation, which has fluctuated around 9%.
At the same time, banks are less willing to lend in the private markets because of their experiences in the 2008 great recession. Investors are having difficulties gaining significant yields while private borrowers struggle with obtaining affordable, transparent financing.
One alternative asset class brings together these investors and private borrowers.
This alternative asset class is set to be one of the fastest-growing ones over the next five years per a recent Alternative Investment Management Association (AIMA) forum.
It’s known as private credit, which covers a spectrum of lending, from opportunistic and distressed debt, alternative lending structures, private credit funds and business development companies (BDCs).
These kinds of investments have the potential to provide much higher yields from 10% to 15%+ and offer diversification from standard markets.
Percent Brings Together Yield-Seeking Investors and Capital-Hungry Borrowers
Investors can select from a wide variety of projects ranging from residential mortgages, small business loans, crypto projects and app development for a low minimum investment of $500 with Percent.
They also don’t need to wait years or decades to realize decent returns as the average term per project ranges from 9 to 22 months. Rates of return or annual percentage yields (APYs) have historically ranged from 10% to 15% with 14% APY being the average, although past performance is no guarantee of future success.
With higher yields come higher risk, leading Percent offerings to be classified as Reg D. All investors must be accredited to join this platform.
Percent makes it easy to verify accreditation status with Know Your Customer (KYC) protocols. Like other crowdfunding sites, it’s easy to create an online account that has no fees for investors.
Investors can fund offerings such as asset-backed loans and corporate loans. As the name implies, asset-backed loans use tangible assets such as real estate and equipment as collateral to secure the loan.
Percent’s technology streamlines the underwriting and loan management processes, which helps ensure investor funds are well managed and loans have a low default rate.
Investors - Earn High Yields And Diversify Your Portfolio By Creating A Free Percent Account Today
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