I do private lending in 🇨🇦 where I act like a bank 🏦 and lend money to small businesses.
I don't have a ton invested in it, this is a small and third growing income stream for me, the first being my dividends as passive income, second my blog as active income, and third, this private lending business.📈
As with all investments that are not "solid" money market or cash in the bank (which is are terrible investments because it barely, if ever, covers inflation which is an average of 4%), there is risk when you want a reward.
👀 Risk, in this case, means that you have loans that will default. Right now, only 2% are shaky, and 98% is in good standing meaning they're paying on time.
✌🏼I am yielding about 13.8% gross, and minus the administration fee of 1.5%, I am netting 12.3%, minus again, these (if any) defaulted loans.
I only have ONE charged off loan at $50 and it was a B Grade loan out of all the money I have lent out in the past year. So goes to show just because it was rated highly doesn't mean it is going to pay you back.
📜To read more about this private lending, click on my Instagram bio link, and then this image, and it will 🚀 take you to my blog post on it.