Investing your hard-earned money is a brilliant opportunity to watch your wealth bloom. For beginners, investments and calculations may sometimes feel like a complicated puzzle. But we are here to help you! Now, we will reveal how and when you can start earning profits from your investments. Let's dive in!
The Profit: How Does it Work?
When borrowers repay the loans you've invested in, you get the payments, too. It includes the money you initially invested (the principal amount) and an extra (interest). Your payment is divided among all the investors joining you in investing that loan. You'll get your share whether you're a big spender or just testing the waters. However, borrowers might sometimes delay their payments. No worries! If a borrower takes a little too long to pay up, the loan originator steps in. All loans are secured with a buyback, ensuring you get back your principal and the interest, even for the delay. Additionally, on hive5, we immediately pay you back during the first days of delay.
Different Loans, Different Payments
Investing in Business or BNPL loans means you'll get part of the principal amount and the earned interest each month. By investing in short-term loans, you can satisfy your earnings in less than one month, which means the payments happen after the loans are closed, and you receive the total principal amount with earned interest. And you can withdraw money or reinvest it.
Let's Keep It Simple
The interest you earn for short-term loans is counted upon the simple formula: invested amount/360 (days in a year) x investment term in days x interest rate.
Imagine you've invested 200 Eur for 30 days at an interest rate of 13%. Here's the calculation: 200 divided by 360 (days in a year), times 30 (investment period in days), times 0.13 (interest rate). The interest you earn is 2.17 Eur.
You don't have to wait ages to see your investments turn into profits on hive5. Whether you manually picked loans or used the Auto Invest tool, your profits start sooner. So, don't wait for a new week, month or year to start; gear up for your investment adventure and enjoy watching those profits grow!
