Percent is currently only accepting accredited investors. In the long term, our mission is to expand opportunities to a wider investor base.
There are several ways of establishing accredited investor status:
At this moment, we are only available to accredited investors in the U.S. with U.S. bank accounts. For investors outside of the U.S. with international bank accounts, we are working on having a structure available to participate in our deals, albeit with larger minimum investments.
Percent uses an industry leading identity verification service for Know Your Customer (KYC) regulations. The service uses photo-based identity documents and artificial intelligence algorithms to confirm identities and raise flags on suspicious applicants.
There are many ways to fund your Percent account. We accept wire transfers or ACHs. Typically, wire transfers clear on the same day or following day and ACH transfers take up to 5 calendar days. Once your funds have cleared, you will see the amount reflected in the balance of your Percent account, and you will be ready to invest.
The investment offerings on Percent are Reg D 506( c ) exempt. This means you must be an accredited investor to participate and verify your accreditation. Investors can go through the accreditation process through our partners at Parallel Passport in their account settings. Accreditation takes ten minutes, and verification can take up to fourty-eight hours.
Most investments on the Percent platform are taxed as ordinary income, with a consolidated 1099-INT form provided each tax year. For Limited Partnership (LP) Participation interest investments and Fund Membership Interest Offerings, investors receive a Schedule K-1 form, detailing their share of earnings, losses, deductions, and credits.
Yes, your funds are held at an FDIC-insured bank. Funds deposited with Percent are insured up to $250,000, the maximum amount allowed by law.
Yes, investors are notified via email as new offerings become available.
Beginning Friday, September 1, 2023, all new deals in which you invest will begin paying fees to Percent from the distributed interest that you receive during the life of that investment. When this new fee structure launches, each investment opportunity on the platform will have a fee that is equivalent to 10% of each advertised interest payment (not your principal), automatically collected from each distribution. For example, for an offering with a 15% Coupon Rate, our new fee will translate to 1.5% providing a net Rate to investors of 13.5%.
At Percent, we are able to offer competitive minimums for our investments.
Many of our deals have minimum investment amounts of just $500.
Upon maturity, the principal and yield of the investment will be transferred back into your Percent account. A credit will be reflected in your account balance. At this point, you may elect to transfer the funds to an external account or keep the balance in your Percent account to easily invest in the next opportunity.
Yes, the balance in your Percent account earns 0.9% interest, calculated on the average daily balance and compounded monthly, with no minimum or maximum balance required to start earning.
We set up an industry standard layer of protection through Special Purpose Vehicles (SPVs). These SPVs are bankruptcy-remote legal entities that are solely created to service every investment on our platform. If Percent were forced to suspend its operations, a third party administrator will be automatically established to continue servicing your investment until the opportunity matures and your principal and distributions are paid.
Percent does accept wire transfers, and our support team can provide wire transfer instructions. Investors are subject to wire fees by their banking institutions.
Any deposit over $50,000 must be made via wire transfer. Any withdrawal over $100,000 must be made via wire transfer.
If you’re not transferring to or from Percent via a wire transfer, your money will be transferred through an automated clearing house (ACH) transfer. Typically, ACH transfers take one to three business day to process, though this depends on the bank. Percent’s cutoff time to process same-day ACH requests is 2:00 PM ET.
To initiate a deposit, sign in to your account and navigate to the My Portfolio page. Under the Investable Balance section, there will be a Deposit Funds button. Press the button, select the bank account your funds will come from, and specify the amount. Once submitted, you will receive a prompt that a deposit request has been made
To initiate a withdrawal, sign in to your account and navigate to the My Portfolio page. Under the Investable Balance section and below the Deposit Funds button, you will find a button that reads Withdraw Funds. Press this button, select the bank account your funds will be sent to, and specify the amount. Once submitted, you will receive a prompt that a withdrawal request has been made.
Currently there is no direct method of investing in our deals without using transferred funds from your account. Thus, we are not able to make reservations in the order book.
Percent's syndication process allows you to make an investment request through an offering's funding period, meaning investors have enough time to fund their account prior to making an investment. For additional information on how to invest on Percent, please refer to this article: How to Invest on Percent.
The funding date is the last day when investors can participate in an offering. Investments in Percent offerings are made during a set period of days, while investment allocations are filled based on investor demand (instead of on a first-come, first-served basis).
Read more about how our investment process works.
The closing date is a date after the funding date, when eligible investment requests are confirmed by Percent and delivered to investors. Offerings closing on a non-business day (a non-weekday or holiday) receive final confirmations on the next business day.
Note: In the case of oversubscription, the downsizing of an offering, or the cancellation of an offering, some investment requests may be excluded. (See “What happens when an offering is oversubscribed?” to learn more.
When investments receive significant demand, Percent works with the borrower behind the offering to lock down a final rate based on received investment requests. Investors who select a higher minimum rate that is above this final rate will not receive an allocation, though they can adjust their order by editing their minimum rate prior to the funding date for a greater chance of being included in the offering.
If needed, Percent will adjust eligible investors' investment requests down accordingly based on their minimum and maximum investment requests.
For a greater chance of receiving an allocation in an oversubscribed deal — one where you already requested an investment — you should set a lower minimum rate and leave the minimum investment amount untouched. This will help ensure you receive your desired allocation irrespective of the final rate.
To cancel a pending investment during the funding period, contact customer support via email or chat 9:00 AM - 5:00 PM Monday through Friday.
A Coupon Rate determines how much interest you can expect to earn annually on your investment, expressed as a percentage of your initial investment amount. For example, a $10,000 investment with a 10% Coupon Rate paid monthly would provide approximately $83 in interest payments each month before fees.
The main difference between Coupon Rate and APY (Annual Percentage Yield) is that Coupon Rate doesn't assume that you'll reinvest your interest payments at the same rate. While a 10% APY means your investment grows by 10% annually including interest on previously earned interest, a 10% Coupon Rate means you'll receive 10% of your initial investment as interest payments over the course of a year.
As of February 2025, Percent switched from APY to Coupon Rate to increase transparency and simplicity. Since most investors don't automatically reinvest their interest payments at the same rate, Coupon Rate provides a more accurate representation of expected returns. This change also aligns Percent with standard practices in public fixed income markets.
👉 Learn more about Coupon Rate and calculate equivalent rates.
Currently, Percent is offering short-term debt investments with competitive risk-adjusted returns. All offerings are securities exempt from SEC-registration under Regulation D, adhering to Rule 506( c ). Returns are based on the performance of underlying assets such as factored invoices, and merchant cash advances that are selectively sourced through our borrower partner network.
All investments carry risk. However, Percent strives to minimize risk and maximize returns for deals it underwrites on the platform by vetting opportunities via a proprietary risk framework. Deals underwritten by third-party managers are largely diligenced and structured by third-parties using their own underwriting guidelines and leveraging their own experience and platform.
Borrowers on the platform are sourced either by Percent or by third-party managers. Every manager selects borrowers to introduce onto the platform differently but the process usually involves a vetting process that encompasses a review of the borrower's management team, experience in a given industry, financial and operational standing, and more.
To view the current interest rate for idle funds, please check our rate sheet.
Yes, your cash is FDIC insured up to $250,000.
Your interest is calculated using the simple interest formula based on your account’s average daily balance, compounding monthly.
Interest is credited to your account during the first week of the month and will appear in your transaction history.
There is no minimum balance required to start earning interest, and no current maximum balance limit.
No, there are no additional fees charged to investors for holding cash in their Percent account and earning interest.
Yes, all the proceeds from your investments on Percent, including interest payments, are added to your account balance and contribute to your monthly interest earnings.
The interest rate is set for each month and is subject to change.
Yes, to create and use a Percent account, you must verify your status as an accredited investor.
The deposit process remains unchanged. You can continue to make deposits via Plaid, ACH, or Wire transfer.
Yes, funds in your Percent account are ready to be immediately deployed into any open deal on the platform as soon as they are received by Percent.
Pre-funding your Percent account allows for quicker investment in open deals, as the funds are available for immediate deployment.
Your funds are placed through IntraFi’s network, which consists of multiple FDIC-insured institutions.
Your interest will be added to your 1099-INT form at the end of the year.
There are no limits on the number of withdrawals or transfers into or out of your Percent account.
Percent Blended Notes issued after February 1, 2024, are eligible to earn interest on undeployed funds. All currently active and new Bespoke Blended Notes are eligible.
Your Percent account does not include checking account features. Investors do not have access to debit cards, checks, or ATMs.
Each investor can only create one Percent account of each account type (i.e. individual account, IRA account, or institutional account).
Your funds are protected by FDIC insurance and are distributed among IntraFi’s network of bank partners, ensuring security even in the unlikely event of Percent’s insolvency.
Percent was incorporated in June of 2018. We launched publicly at the end of June of 2019. Until early 2021, we were known by our former name, Cadence. We became Percent in 2021.
Percent is based out of Manhattan in New York City. Our address is 909 Third Ave #968 New York, NY 10150.
The Secondary Market is a feature that allows investors to indicate interest in buying or selling positions in eligible private credit deals on Percent. It provides an option to seek liquidity before a deal matures or to access deals that may have sold out during primary funding.
No. All orders are non-binding indications of interest. A Percent representative will facilitate matching between buyers and sellers, and all parties must agree to final terms before any transaction settles.
Not all deals are eligible for secondary trading. Eligible deals are marked on the platform and can be found in the Secondary Market tab under Deals. Percent determines eligibility based on deal structure and other factors.
Yes, minimum indications of interest specific to each eligible deal.
Prices are expressed as a percentage of par (100%). For example, a price of 95.00% means $950 for every $1,000 of face value. Buyers and sellers set their own prices when submitting indications of interest. There is no automated price matching; Percent facilitates negotiations between parties.
Accrued interest is not included in the transaction. The seller forfeits accrued interest at the time of settlement, and future interest payments are distributed to the buyer and all then-current holders according to the payment schedule of the underlying deal.
Because private credit markets differ from public exchanges, trades do not settle instantaneously. Once a match is identified and both parties agree to final terms, settlement is processed as quickly as possible. Exact timing depends on the deal and parties involved.
Yes. You can cancel any open indication at any time from the Indications of Interest tab in your Portfolio.
Yes. You must have cash available in your Percent account equal to at least 10% of your bid amount to submit a buy indication.
Yes, each trade is subject to a fee of 50 basis points on the trade size for each party. For example, if the trade is of $10,000, then the buyer is required to fund their account with $10,050 - $10,000 of which goes to the seller, and $50 goes to Percent. On the flip side, the seller will be charged 50 basis points from their sale proceeds. Using the example above, the seller's Percent account would only be credited with $9,950.