How Percent Works

Private credit refers to debt financing provided outside of traditional bank lending and public bond markets. Unlike stocks or publicly traded bonds, private credit investments are loans made directly to businesses, often secured by specific assets like real estate, equipment, or receivables. These investments typically offer higher potential returns than traditional fixed income—often ranging from 10-18%—in exchange for less liquidity and a higher risk profile. Private credit has historically been accessible only to institutional investors and ultra-high-net-worth individuals, but platforms like Percent now allow accredited investors to access these opportunities with lower minimums and greater transparency.

Percent is available exclusively to accredited investors as defined by SEC regulations. To qualify, you must meet one of the following criteria: an individual income exceeding $200,000 (or $300,000 with a spouse) in each of the past two years with expectation of the same in the current year, a net worth over $1 million excluding your primary residence, or hold certain professional certifications like Series 7, 65, or 82 licenses. Entities such as trusts, LLCs, and corporations may also qualify under specific conditions. If you're unsure about your accreditation status, Percent's platform includes a simple verification process during account setup, and our team is available to answer questions about eligibility requirements.

If a borrower defaults on a loan, Percent's servicing team immediately initiates a structured recovery process focused on maximizing investor returns. Because Percent specializes in asset-backed lending, most deals are secured by collateral—such as real estate, inventory, or receivables—that can be liquidated or restructured to recover principal. The specific recovery process varies by deal structure and asset type, but investors receive regular updates throughout the workout period. While defaults are an inherent risk in private credit investing, Percent's focus on secured, asset-backed transactions and rigorous underwriting helps mitigate potential losses. Historical recovery rates and deal performance data are available in the platform's transparency reports and individual deal pages.

Private credit is generally illiquid; offerings on Percent typically have defined terms (often measured in months rather than years), and you should plan to hold to maturity unless stated otherwise in the deal documents. Shorter-duration options can help with reinvestment flexibility, but secondary liquidity is limited and never guaranteed.

All investments involve risk, including loss of principal; private credit adds risks such as borrower default, collateral performance variability, servicing risk, and illiquidity. Percent materials are designed to be fair and balanced, with detailed disclosures so you can weigh potential yield against these risks and determine suitability as an accredited investor. Review each offering’s documents carefully before investing.

Percent combines institutional-grade private credit access with technology-driven transparency and efficiency. Unlike traditional wealth managers or private funds that require $250,000+ minimums and charge 2-and-20 fee structures, Percent offers deal-by-deal investing with minimums as low as $500 and no management fees (for direct investing)—fees are only collected from interest earned for direct investing. Other fees may apply for structured products like Blended Notes or SMAs. The platform's proprietary technology provides real-time deal monitoring, automated reporting, and granular performance analytics typically reserved for institutional investors. Percent also differs from marketplace lending platforms by focusing exclusively on asset-backed, professionally underwritten deals rather than unsecured consumer loans, and by offering both syndicated opportunities and Separately Managed Accounts for investors seeking customized portfolio construction. Every deal includes detailed documentation, regular borrower updates, and transparent fee disclosure before you invest.