quote:
Worthy helps you save and grow your money — and do it in a way that better aligns with your values and lifestyle. Proceeds from your purchase of Worthy's 5% fixed interest bonds are used to help fuel American small businesses. Imagine that — putting your money to work by supporting your fellow humans.

https://worthybonds.com/

This post was edited on 6/1/19 at 4:08 pm

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Posted by Twenty 49

Shreveport

Member since Jun 2014

18770 posts

Posted on 6/1/19 at 9:55 pm to GeauxBroke

Interesting concept, but I wouldn’t do more than dabble in it. That shite could shut down and go away tomorrow. Principal gone.

They take your money and loan to small businesses for more than 5% and make money off the spread. Sounds great until an economic downturn and defaults, Or Worthy turns out to be a scam from the get go. If the CEO takes the money and runs, you can file a lawsuit and LOL, forget that money.

No more backing than loaning money to a stranger over the internet.

If had been around 20 years with sound results, I would consider it for more than mad money, but not as a new concept.

quote:
It isn't known what might happen if a business defaults on its loan. According to Worthy, they can sell inventory to cover the default. But if the business has no inventory to sell, that may not work too well.

As for investors, there's no information about what happens to their principal in the event of a loan default. It's unclear how Worthy will maintain a 5% interest rate for investors during adverse conditions such as a recession or multiple loan defaults.

Worthy bonds are not FDIC-insured (insured by the Federal Deposit Insurance Corporation). The FDIC is used to insure bank account deposits. Worthy is not a bank and its bonds carry no form of insurance.

LINK

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Posted by sneakytiger

Member since Oct 2007

2473 posts

Posted on 6/1/19 at 10:28 pm to GeauxBroke

5% is waaaay too cheap

quote:
If we sell $50,000,000 of gross proceeds from the sale of our Worthy Bonds under this offering circular, we estimate our net proceeds, after deducting estimated commissions and expenses, will be approximately $49,950,000, assuming our expenses are $50,000 for such offering. We intend to use approximately 95% of the proceeds from the sale of Worthy Bonds in this offering to fund (i) loans to manufacturers, wholesalers and retailers secured by inventory and/or equipment, and (ii) purchase order financing. To a lesser extent (not more than 40% of our assets), we may also provide (i) secured loans to other borrowers, (ii) acquire equity interests in real estate (not more than 10% within this 40% cap); (iii) make fixed income investments; and (iv) provide factoring financing. We may also use approximately 5% of the proceeds from this offering for general corporate purposes including the costs of this offering. Our allocation of the proceeds of this offering will be made by our management in its sole discretion and will be made in a manner so that the amount and nature of such use of proceeds does not cause us to lose our exemption from regulation as an investment company pursuant to the Investment Company Act of 1940.

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Posted by yatesdog38

in your head rent free

Member since Sep 2013

12737 posts

Posted on 6/2/19 at 10:43 pm to GeauxBroke

please read all of this before you consider purchasing... It sounds like the are a shady BDC (business development corporation) I don't know much about the company but TBH if you are considering investing in a BDC you'd probably be better off going with something publicly traded like a Prospect capital or Ares Capital and buying their preferred shares. I cannot make a formal recommendation either way just offer guidance to do more research and say tread carefully

LINK

This post was edited on 6/2/19 at 10:46 pm

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