Understanding Yieldstreet Investment Risks

March 31, 20151 min read
Understanding Yieldstreet Investment Risks
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Like all investments, an investment in a specialty finance product carries certain risks. Each offering and asset class has its own investment risk profile, which should be considered on a case-by-case basis. Specialty finance plays a critical role by extending credit when banks turn down potential borrowers with strong businesses and great. After the financial crisis of 2008, traditional banks were forced to tighten their lending criteria. With traditional lending sources no longer available, or borrowing process becoming cumbersome and long, many small to middle-market companies are borrowing billions of dollars from specialty finance firms for product development, strategic acquisitions and even day-to-­day operations like payroll and utilities. Yieldstreet performs due diligence on our borrowers and originators, and we provide our investors the information you need to properly assess the investment.