Various financial institutions can allow lenders to participate in the funding of a loan. At Yieldstreet originators can sell as much as 100% to nearly 5% of the loan. The percentage involved will vary from the situation, as this is dependent on the deal at hand.
Essentially participation will involve multiple lenders simultaneously if one lender cannot cover all portions of the loan.
One can think that loan participation can offer a wide range of benefits to both lenders and borrowers. Here is a look at some of the benefits associated with loan participation:
Some banks and credit unions will purchase parts of a loan to broaden their lending portfolios. When banks participate in loan purchasing, it helps to diversify financial involvement and market influence. Additionally, these institutions will participate in loans to increase demand for lending services when demand thereof has decreased.
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.