Worthy Peer Capital, a subsidiary of Worthy Finance, has received regulatory approval to raise funding under Reg A+. The crowdfunding round will be used to bring a new liquid peer-debt product to the entire investing ecosystem.
Everyone knows that rates on Money Market accounts suck. But something is better than nothing and, in general, these accounts are quite secure. Worthy Peer Capital wants to bring a new “Worthy Bond” to all investors, included non-accredited ones, with a fixed rate of return pegged (initially) at 5%.
Worthy explains that even though the Worthy Bonds have a 36 month term, they may be cashed in at any time for providing near immediate liquidity. Worthy believes these Bonds serve as an alternative to traditional money market products.
Starting with a $10 minimum investment, Worthy Bonds are designed to allow even the smallest investor to access the types of alternative debts products. The proceeds are being used to provide asset-backed loans to America’s small businesses.
Worthy describes itself as part of the growing online lending industry. It is utilizing Reg A+ to create a peer to peer lending / investing option that is better than going to a bank (for both sides of the equation). The Offering Circular is available here if you are interested in more information.
Sally Outlaw, CEO of Worthy and an early leader in the crowdfunding movement, explains her vision;
“At Worthy we believe that the 98% are worthy of a better investment return. That is why we pride ourselves on employing both Regtech as well as Fintech solutions to deploy financial products that ensure a more democratic and effective economic system.”
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