Private Credit:
Institutional yields, now accessible.
Private credit is how banks and institutions have quietly earned 8–14% annual returns for decades. New platforms now let individual investors access the same loans — with minimums starting at $500.
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What is private credit?
Private credit is direct lending to businesses — outside of public bond markets or traditional bank loans. When a mid-sized company needs $5–50 million for expansion or an acquisition, they often cannot access public markets easily. Private credit funds step in as lenders, earning higher yields in exchange for less liquidity.
Historically, this was the exclusive domain of pension funds, endowments, and ultra-high-net-worth investors. Platforms like Yieldstreet and Percent have opened this asset class to individuals with as little as $500.
A business needs capital
A mid-market company needs $10M to acquire a competitor. Banks are slow; public markets are expensive.
A fund provides the loan
A private credit fund lends at 11–14% interest, secured by business assets. Much higher than a savings account.
You earn the yield
Platforms pool individual investors' money into these loans. You receive quarterly interest payments at the fund's net yield.
Who is private credit right for?
Good fit if you...
- ✓Have $1,000+ you won't need for 1–3 years
- ✓Want yields above savings accounts and CDs
- ✓Are comfortable with illiquidity in exchange for return
- ✓Want income not correlated with the stock market
- ✓Already have an emergency fund and basic portfolio
Not a fit if you...
- ✗May need this money within 12 months
- ✗Don't have a fully funded emergency fund first
- ✗Are new to investing and still building basics
- ✗Cannot tolerate the possibility of principal loss
- ✗Are looking for FDIC-insured protection
Top platforms compared
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Best for beginners — no accreditation required for some offerings
Min. Investment
$1,000
Target Yield
8–12%
Liquidity
Quarterly windows
Short-term private credit notes with some of the highest net yields available
Min. Investment
$500
Target Yield
12–15%
Liquidity
6–36 month notes
Private credit secured by commercial real estate — lower risk profile
Min. Investment
$5,000
Target Yield
7–10%
Liquidity
3–36 months
Institutional-grade exposure with a liquid cash management option
Min. Investment
$1,000
Target Yield
5–8%
Liquidity
Daily (cash product)
Risk disclosure
Private credit investments are not FDIC-insured and carry real risk of principal loss. They are illiquid — you cannot withdraw on demand. Returns are not guaranteed. Always consult a financial advisor before investing in alternative assets.
Not sure if private credit fits your goals?
Take Money Map — find your best fit