Frequently Asked Questions

Answers to the most common questions about Percent.

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:

  1. You have earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expect the same for the current year
  2. You have a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
  3. You are an investor with certain professional certifications, designations, and/or credentials, including Series 7, Series 65, and Series 82 licenses while qualifying as “natural persons.” (Investors with other licenses are to be considered and added in the future.)
  4. You are an investor with a “spousal equivalent,” or a spouse of an accredited investor who pools their assets along together to meet the previous net worth and/or income requirements for accredited investors. (Eg. If you are married to an accredited investor and share monetary resources, you are now also an accredited investor.)
  5. You are “knowledgeable employees” of a private fund.
  6. Limited Liability Companies (LLCs) and Family Office entities with $5 Million assets under management. SEC- and state-registered investment advisers (but not reporting advisors) of these entities can also now be considered accredited investors.
  7. Entities including Native American tribes, governmental bodies, funds, and entities “organized under the laws of foreign countries” with investments over $5 million — as long as they were not formed solely to invest in a specific accredited investment.

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 leverages a self-accreditation process as part of the regulatory exemptions we file for our investment offerings. Investors will indicate their accredited status when signing the subscription agreements for each investment made on the platform.

Please note: the subscription agreement signed includes the attestation indication on record for each investor and is legally binding.

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 506BC 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 twenty-four hours.

All investments on the Percent platform are taxed as ordinary income and will produce a consolidated 1099-INT form each tax year.

The Percent platform has no fees and we will never pull money from your account without your discretion. The subscription agreement you sign does not indicate we will be taking money monthly from your investor account. The word “subscription,” as it relates to our platform, is a legal term and not an actual recurring subscription.

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 e-mail (unless you opted out), but it’s important to note there are different times at which you may be notified.

Rollover investors (those who participated in the previous offering) receive first priority to reinvest and will be notified first.

If you participated in the Dutch auction, and there is still room after rollover investors have been given the opportunity to invest, you would then be notified.

If you did not participate in the Dutch auction, you are notified after rollover investors and Dutch auction participants.

We encourage all investors to participate in the auction.

As an investor, there are no fees to invest on the Percent platform at this time. Fees on the Percent Prime platform, however, do have related fees. You can read about that here.

At Percent, we are able to offer competitive minimums for our investments.

For Percent investments that are part of our short term note programs, the minimum you can invest in a deal is $500.

For Percent Prime investments, investment minimums vary per deal. It’s worth noting that, historically, deals on Percent Prime start at $5,000 or greater. Please see the individual deal page to verify the minimum investment amount required to take part in a deal before you decide to invest.

Lastly, if you are investing with an IRA via a custodian, the minimum you can invest in a deal is $2,500.

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.

Unfortunately, not at this time. Since we are using a non-interest bearing custodian account, we will not be able to generate interest on your behalf.

Percent has structured each investment to provide as much protection as possible for investors. Despite all of the precautions taken, there is always a risk of total loss of investment.

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.

Yes!

We’ve recently partnered with Alto IRA to make it easier to invest your SDIRA on Percent. And if you have a self-directed IRA through another provider, please reach out to us if you have any questions on how to get started. Please note the minimum to invest with a provider is $2,500.

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 or withdrawal over $25,000 must be a wire transfer.

If you’re not transferring to or from Percent via a wire transfer, you money will be transferred though an automated clearing house (ACH) transfer. Typically, ACH transfers take one business day to process, though this depends on the bank. Percent’s cutoff time to process same-day ACH requests is 4:00 PM EST.

Although the ACH limit is $25,000 per transaction, there is no limit to the number of transactions an investor chooses to initiate.

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.

At this time, there is not a 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.

Due to high demand and in efforts to maintain operational efficiency, our current syndication is first come, first served. Deals that are rollovers from previous notes offered by the same originator are open to investors already in the current note for the first 24 hours of the syndication period. If the entire deal size is filled by rollover investors, it cannot be launched to all remaining investors on the platform.

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 APY that is above this final rate will not receive an allocation, though they can adjust their order by editing their minimum APY 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 APY and leave the minimum investment amount untouched. This will help ensure you receive your desired allocation irrespective of the final APY.

Watch the video below for an overview of our investment process. Read more on our blog.

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 originator partner network.

All investments carry risk. However, Percent minimizes risk and maximizes returns by thoroughly vetting every opportunity via a stringent proprietary risk framework.

Percent employs a rigorous vetting process for selecting partner originators. Originators must have a reputable management team, proven experience in the underlying asset classes, a track record of successful investments, and stringent due diligence and underwriting standards.

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.

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