Should You Sign Up For Percent

Jeremy BiberdorfBy: Jeremy Biberdorf

November 1, 2023November 1, 2023

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Percent is an alternative investment platform for accredited investors that gives regular investors access to private credit. Investors can invest as little as $500 through the Percent platform in short-term, high-yield opportunities like small business loans, merchant cash advances, and trade receivables.

With customer service and a proven track record of solid returns, Percent offers an attractive way for investors to diversify beyond stocks, bonds and mutual funds. You get to support growing businesses in your community while earning healthy interest rates. It’s a win-win.

If you’re an accredited investor looking for new ways to invest your money, Percent could be an excellent option. They handle all the details so you can earn passive income without the hassle. Why settle for lackluster returns when there are profitable alternatives out there?
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The Pros of Using Percent

Using Percent is a no-brainer if you’re looking to invest in private credit deals. Here are some of the major pros:

  • With average yields of over 15%, Percent offers some of the highest returns in the industry. Their short-term deals, particularly, can net you annualized returns of up to 18-20% – much higher than you’ll find with most traditional investments.
  • You can start with as little as $500. Unlike many other platforms, Percent has an extremely low minimum, so you can dip your toe in and try it without breaking the bank.
  • There are options for every investor. Whether you want to invest for 6-12 months or 3-5 years, Percent has a range of deals to suit your needs.
  • Customer service is a top priority. The team at Percent provides support from day one to ensure you find the right deals and have a great experience. They’re available to answer questions and address any concerns.
  • Your money is in good hands. Percent has facilitated private credit deals for over a decade with an excellent success and security track record. They do extensive due diligence to minimize risk for investors.

The Cons of Using Percent

While Percent offers some appealing benefits, there are a few downsides to consider:

  • It’s currently only available for accredited investors. Unless you meet the SEC’s definition of an accredited investor (having a certain high net worth or income), you won’t be able to invest in deals on Percent.
  • Only U.S. investors with U.S. bank accounts can use Percent right now. If you’re an international investor or have foreign bank accounts, Percent won’t work for you.
  • Deals can close quickly, so you have to act fast. Hot deals on Percent are often oversubscribed, meaning more investors want in than shares available. If you snooze, you lose.
  • There’s no secondary market. Once you invest in a deal on Percent, your money is tied up in that investment until the company exits. You can’t easily sell your shares to someone else.

What are the Key Features?

Percent offers some attractive features for accredited investors looking to diversify into private credit.

  • Low Minimums: You can start with at least $500 per investment. This low barrier to entry makes the platform accessible to most accredited investors.
  • Rigorous Due Diligence: Percent thoroughly vets each investment opportunity and originator before listing deals on the platform. Originators must have a proven track record and experience in private credit. This helps ensure high-quality deals for investors.
  • Transparency: Percent provides a wealth of information on each deal, including the investment term, expected return, collateral type, and originator background. You’ll have a clear picture of your investment before committing capital.
  • Diverse Opportunities: Investments span residential mortgages, business loans, merchant cash advances, and more. There are opportunities for every risk tolerance and investment goal.
  • Automated Investing: If you prefer, you can set up an automated investment plan to deploy capital on the schedule and in the amounts you choose.

Percent Investment Offering Types

Asset-Base Notes

For investors seeking loans with no collateral, Percent offers asset-based notes. These notes include but are not limited to the following:

  • Consumer Loans
  • Trade Receivables
  • SMB Loans
  • SMB Leases
  • SMB Cash Advances

Blended Notes

Blended notes combine multiple companies or assets into a single investment. Investors can invest as little as $5,000 in bundled businesses with the potential for solid returns. Percent takes a 1% cut of the total investment as a management charge for facilitating and managing the notes.

Corporate Loans and Venture Investing

For investors interested in funding emerging companies, Percent offers corporate loans and venture capital investments. Companies can borrow up to $5 million to drive growth before more traditional funding. Investors may receive loan repayments, equity, or revenue share in exchange for capital.

Final Thoughts – Is Percent Worth it?

As an accredited investor looking to diversify, Percent is worth considering. The platform opens access to higher-yield, short-term investments once only available to institutional investors. While higher returns mean higher risks, Percent conducts due diligence on deals and borrowers, providing transparency.

Percent offers a unique opportunity for those seeking investments beyond stocks and bonds. The platform allows you to explore many investment options, from real estate loans to litigation finance.

If you qualify as an accredited investor, Percent provides an intriguing way to access and diversify into alternative investment areas that were previously difficult to tap into. The platform opens up new possibilities for portfolio growth and may be worth a look. Click here to learn more about 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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