Percent stands out in the world of alternative investments, offering private credit opportunities once reserved for institutional investors. This platform bridges the gap, allowing individual accredited investors to diversify their portfolios with options like SMB loans, merchant cash advances, and trade receivables.
While Percent’s innovation and accessibility are commendable, it’s important to address some concerns and complaints raised by users to provide a balanced view. Let’s delve into these issues and explore the overall efficacy of Percent as an investment platform.
Learn More About Percent
Company Overview: Percent
Percent, launched in 2018, has revolutionized the alternative investment space by making private credit accessible to accredited investors. With a low entry threshold of $500, it presents a diverse array of investment opportunities, from SMB loans to merchant cash advances.
Known for its excellent customer service and solid returns, Percent is an attractive choice for those seeking alternatives to stocks, bonds, and mutual funds.
However, it’s currently limited to U.S. investors with U.S. bank accounts and does not offer a secondary marketplace for investments. Discover more about Percent in our detailed review here.
Percent Complaints and User Concerns
Some Reddit users shared some criticism of the platform:
“Why go through the hassle of getting into retail private credit with Percent when you can generate their types of yields through institutional mortgage REITs with solid FCF and a balance sheet, such as with Starwood Capital Trust ($STWD) and others.”
“They have a variety of different types of offerings with HUGE ranges in the minimum investments. A lot seem to be $10K, $15K, or $25K kind of levels. Occasionally you’ll find an offering with a $500 minimum. My understanding is they’re only available to accredited investors.
I personally think many of the offerings are relatively high risk. I don’t know that the underlying creditworthiness of some of the offerings is that high. I have also seen some offerings that are to consumers or businesses in other countries, adding in potential currency / FX risks as well.”
Comparison with Institutional Mortgage REITs
Some users wonder why they should choose Percent for private credit investments when similar yields can be obtained through institutional mortgage REITs like Starwood Capital Trust. While REITs are a viable investment option, Percent offers a different kind of opportunity.
Private credit investments on Percent often come with shorter terms and the potential for higher yields, providing a unique diversification option for investors’ portfolios.
Investment Range and Risk
Another concern is the wide range of minimum investments and perceived high risk in some offerings. While it’s true that Percent offers investments with varying minimums and risk profiles, this diversity allows investors to choose opportunities that align with their investment objectives and risk tolerance.
The higher minimums in some cases reflect the nature of the deal and the potential for higher returns. As for the creditworthiness and risks associated with foreign investments, Percent conducts thorough due diligence, but investors should always perform their research and consider currency risks in their decision-making process.
Star Ratings and Reviews on Other Platforms
Percent has received positive ratings across multiple platforms, reflecting its effectiveness as an investment platform:
- WallStreetZen:5
- Millennial Money:5
- Benzinga:5
- Invested Wallet:5
- The Millenial Guide:5
- The Ways To Wealth: 4
These ratings suggest a high level of satisfaction among users, particularly regarding the range of investment opportunities and the platform’s transparency and customer service.
Is Percent Right for You?
Percent is an ideal platform for accredited investors looking for:
- Diversification beyond traditional investments.
- Short-term, high-yield opportunities.
- Transparent and well-researched investment options.
However, it might not be suitable for those who are not accredited investors or are looking for lower-risk investment options.
Comparison with Competing Platforms
When compared to other alternative investment platforms, Percent holds its ground with its exclusive focus on private credit and a lower entry barrier. Check out our article titled: Is Percent the Best Alternative Investment Platform? to learn more.
Final Thoughts
Percent offers a unique and valuable service for accredited investors seeking to diversify their portfolios with private credit investments. While there are concerns regarding investment minimums and risks, Percent’s commitment to transparency, due diligence, and customer service makes it a strong contender in the alternative investment space.
For accredited investors willing to navigate these complexities, Percent presents an exciting opportunity to explore a previously inaccessible asset class.
To learn more and start investing with Percent, click here and discover the potential of private credit investing.
Percent FAQs
What type of investments does Percent offer?
Percent specializes in private credit investments, including SMB loans, merchant cash advances, and trade receivables.
Is Percent suitable for all investors?
Currently, Percent is only available for accredited investors in the U.S. with U.S. bank accounts.
What is the minimum investment required on Percent?
Percent offers investments with a minimum of as low as $500, making it accessible to a broader range of accredited investors.
How does Percent ensure the security of investments?
Percent conducts thorough due diligence on each deal and provides transparent information to help investors make informed decisions.
Can I sell my Percent investments on a secondary market?
At this time, Percent does not offer a secondary marketplace for its investments.
How does Percent compare to traditional investments like stocks and bonds?
Percent provides an alternative to traditional investments, offering potentially higher yields through private credit deals with short-term durations.
What are the risks involved with investing on Percent?
Investments on Percent involve credit risk, liquidity risk, and platform risk, among others. Investors should consider these factors and their risk tolerance.
Does Percent offer opportunities for non-accredited investors?
Currently, Percent is only available to accredited investors.
What makes Percent unique among alternative investment platforms?
Percent’s exclusive focus on private credit, transparent operations, and diverse range of investment opportunities set it apart in the alternative investment space.
How has Percent performed in terms of returns and track record?
Percent has a strong track record with an average default rate of 1.89% and an average duration of 9 months for its investments, offering competitive returns in the private credit sector