Review Percent Pros And Cons

Jeremy BiberdorfBy: Jeremy Biberdorf

October 23, 2023October 23, 2023

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Percent is an innovative investment platform that provides access to alternative investments like private credit. Historically, these private markets were only available to big institutional investors, but Percent opens the door for individual accredited investors to diversify into areas outside of stocks and bonds.

With Percent, you can invest in things like small business loans, merchant cash advances, and accounts receivable at affordable minimums of just $500. They aim to provide a transparent experience and excellent customer service for those looking to venture into alternative investments.

Percent thoroughly vets each investment opportunity to find viable companies and reasonable terms. They handle all payments, monitoring, and administration so you can earn attractive returns without the hassle.

If you’re an accredited investor seeking diversification and strong yields, Percent offers a compelling way to access the private credit market. Here is a review of Percent, weighing out its pros and cons.
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Pros of Using Percent

If you’re an accredited investor looking to diversify your portfolio, Percent is worth considering. This alternative investment platform focuses exclusively on private credit opportunities, giving you access to investments typically reserved for institutional investors.

Low Barrier to Entry

With Percent, you can get started with a minimum investment of just $10,000. Compare that to the $250,000 minimum that’s common for private credit mutual funds, and you’ll see why Percent opens up this asset class to more investors.

A Range of Choices

Percent offers a variety of private credit investments to choose from, including:

  • Merchant cash advances: Short-term loans to small businesses based on future credit card sales.
  • Corporate loans: Loans made directly to established small and mid-sized companies.
  • Consumer loans: Loans to individuals for purposes like home improvement, medical expenses, or debt consolidation.
  • Venture debt: Loans to early-stage companies with venture capital backing.

This diversity means you can find opportunities that match your risk tolerance and return objectives.

Transparent and Trustworthy

Percent provides details on the management fees for each investment, so you know exactly what you’re paying. They also have a responsive customer service team to guide you through the investment process and address any questions you may have.

With a proven track record of successful investments and satisfied customers, you can feel confident investing on Percent’s trusted platform.

Cons of Using Percent

While Percent offers some attractive benefits for accredited investors, there are also some significant downsides to be aware of before using the platform.

U.S. Only

Percent is currently only open to investors based in the U.S. with U.S. bank accounts. If you’re an international investor, you won’t have access to deals on Percent.

Need to Act Quickly

Deals on Percent often fund very quickly, sometimes in just a few days. As an investor, this means you need to act fast if you see a deal you want to invest in. If you wait too long, the deal may be fully funded before you have a chance to invest.

No Secondary Marketplace

Once you invest in a deal on Percent, your money is tied up in that investment until the deal matures or exits. There is currently no secondary marketplace to buy and sell investments on Percent. You can’t pull your money out early or exit an investment when you want to.

Who is Percent Best for?

Percent is best suited for accredited investors looking to diversify their portfolios. As an accredited investor, you have access to Percent’s full range of investment offerings, often with minimum investments of as little as $500. This makes Percent an appealing choice if you want exposure to private credit markets and alternative investments.

Accredited investors are individuals with a high net worth, generally over $1 million in liquid assets or an annual income of $200,000 ($300,000 jointly). On Percent, accredited investors can invest in a variety of private credit opportunities like:

Private credit and alternative investments provide diversification from the stock and bond markets. By investing in Percent, you can add asset class to your investment portfolio with the potential for strong, stable returns that aren’t directly correlated to the public markets.

Is Percent Right for You?

So, is Percent right for you? That depends on your investment goals and risk tolerance. For accredited investors, Percent is undoubtedly a platform to consider. The opening up access to high-yield, short-term debt investments, which were traditionally only available to a select few, is a big win for diversification.

While these types of investments do come with a certain amount of risk, Percent performs in-depth due diligence and offers transparency around corporate borrowers and their deals. Percent provides a unique platform for those looking to expand their investment horizon beyond traditional investments.

If you’re comfortable with the risks that come with investing in high-yield debt and are looking for ways to diversify your portfolio, Percent could be a great option. However, if low-risk, highly liquid investments are more your speed, you may want to consider other platforms or investment vehicles.

In the end, the right choice comes down to your financial situation, risk tolerance, and investment objectives. But with Percent’s dedication to due diligence, transparency, and customer service, they have a lot to offer the right investor. Click here to sign up for Percent today.
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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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