Open to accredited investors only
The most common definition of accredited investor is someone who makes $200k a year, $300k jointly with their spouse, or has $1m in net worth apart from their primary residence. If you qualify by holding a Series 7, Series 65 or Series 82 License, you may submit your CRD number. You can also have your CPA or lawyer verify your accredited status. You can find more info regarding accreditation here.
Make Supply Chain Finance investing the beginning of your Yieldstreet investment journey
Make Supply Chain Finance investing the beginning of your Yieldstreet investment journey
Your frequently asked questions, answered.
What am I investing in?
Yieldstreet provides investors access to alternative investments*, typically with low correlation** to the stock market. Previously, investments of this kind have been reserved for hedge funds and large institutions.
We work with experienced originators who provide a loan for a project (or need) that is collateralized by an underlying asset from the associated borrower, such as a real estate property, legal settlement or shipping vessel.
Our offerings currently focus on a number of alternative asset classes, including Real Estate, Legal Finance, Marine Finance, Commercial and Consumer Finance, and Art Finance. You can learn more about investing in alternatives on Yieldstreet in our Education Center.
*generally considered to be any investments made in asset classes other than stocks, bonds, and cash
**Yieldstreet offerings provide typically low correlation to the broader markets, meaning that they tend to be largely unaffected by whether the stock market is rising or falling
How often do I get paid in a supply chain finance or private business credit offering?
Each offering has its own payment terms, so you should carefully review the offering materials. For private business credit, monthly interest is the most common payment structure, although supply chain financing typically pays all interest earned at maturity.
What does it mean to invest in private business credit?
Private Business Credit targets the ownership of higher-yielding corporate, physical (excluding real estate) or financial assets held within a private structure, which can include: long-term consumer and commercial receivables, inventory, equipment, and other business assets.
That said, Yieldstreet is always looking for new types of opportunities to bring onto our platform in private business credit as well as other asset classes. Be sure to read the investment materials provided to understand the nuances and risks of each offering you evaluate.
Why are these supply chain finance deals being made available to me? Why don't these companies work with traditional banks for these types of loans?
Yieldstreet’s mission is to provide a range of income-generating investment opportunities to retail investors who typically would not have a seat at the table. Our deals are typically too large for most specialty finance companies to offer. Through our pool of investors, Yieldstreet divides up participation in investments, allowing for larger overall transactions than these companies can often provide. Yieldstreet provides term loans secured by certain assets of a business. The repayment of our term loan will come from the liquidation of the assets in the ordinary course of business or the cash flows generated from the growth capital that we provide to the borrower. Yieldstreet strives to provide a clear path to the repayment of principal.
What happens if an investment goes wrong?
At Yieldstreet, we work in tandem with our origination partners to follow a set of protocols when it comes to the servicing of our portfolio. Yieldstreet investments have largely performed in-line with initial expectations. However, investors need to understand that they must consider the risk of defaults to make an informed decision when investing with us.
The term ‘default’ may create anxiety for many investors, but the truth is, there is no such thing as a risk-free investment. In the simplest terms, a default occurs when the Borrower fails to comply with a material term of the underlying loan agreement and the Lender puts the Borrower on notice of its intent to enforce its rights over the loan and the underlying collateral.
In asset-backed lending, the Borrower must provide some form of collateral to support a loan. Depending on the terms of the loan agreement, if a default is declared, the Lender is typically able to seize the collateral by enforcing its rights through the foreclosure process, or through an alternative workout strategy deemed appropriate for the specific situation.
Should a default occur in connection with one of your investments, Yieldstreet will pursue recovery to the best of our ability and we have demonstrated our ability to do this. As an example, check out this case study of our Orlando Hotel Portfolio investment.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]