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Private Credit Investment Platforms

Earn yield through peer-to-peer lending, business loans, real estate debt, and alternative credit opportunities. Access institutional-grade credit deals.

14+
Platforms
$10
Min Investment
6-10% annually
Avg Returns
Home > Private Credit

Sub-Categories

Peer-to-Peer Lending

Business Loans

Real Estate Debt

Litigation Finance

Small Business

Frequently Asked Questions

What is private credit investing?

Private credit involves lending money directly to businesses or individuals outside traditional banks. You earn fixed interest income from loans, including business loans, real estate debt, consumer loans, or specialty debt like litigation financing. Returns typically range from 6-15% annually.

Is private credit risky?

Private credit carries default risk - borrowers may fail to repay loans. However, many platforms mitigate this through: collateral requirements, first-lien positions, diversification across many loans, and rigorous underwriting. Higher returns reflect higher risk compared to savings accounts or bonds.

How is private credit different from P2P lending?

They're similar but not identical. P2P lending (like Prosper, LendingClub) focuses on consumer loans. Private credit platforms (like Percent, Yieldstreet) often target business loans, real estate debt, and institutional-grade credit opportunities. Private credit typically offers higher minimums but potentially better risk-adjusted returns.

What returns can I expect from private credit?

Private credit returns vary by loan type: consumer loans 5-10%, real estate debt 8-12%, business loans 10-15%, and specialty credit (litigation, factoring) 12-18%. Higher returns indicate higher risk. Diversification across multiple loans is essential to manage default risk.

Can I invest in private credit with my IRA?

Yes, several private credit platforms offer IRA eligibility including Yieldstreet and some offerings on Percent. This allows you to earn fixed income returns tax-deferred or tax-free (Roth IRA), making private credit an attractive retirement portfolio diversifier.

How liquid are private credit investments?

Most private credit investments are illiquid until loan maturity (typically 6 months to 5 years). Unlike stocks, you can't easily sell your loan positions. Plan to hold investments until maturity. Some platforms offer redemption options but with restrictions or penalties.

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