When an investor sees a yield of 18–25% per annum in USDC, the first reaction is often the same:
"Banks offer 2–4%. If it's significantly higher here, does that mean it's risky?"
This is a normal question.
In reality, such percentages are a standard rate for the Private Credit market.
In this article, we explain how such returns are generated.
This is not about "miracle investments," but about the real economy: the specifics of the banking system, the credit gap, and the value of quick access to capital.
Reason 1. Banking Vacuum and the Credit Gap
Many companies working with 8lends are located in countries with complex banking systems or in developing economies.
The paradox of such markets is that small and medium-sized enterprises (SMEs) can be stable and profitable, yet have almost no access to bank loans.
Banks are often focused on government projects and large corporations, while their assessment processes for medium-sized businesses are either too formal or simply do not work.
As a result, a credit gap arises: there is money in the system, but it does not reach real businesses.
For such companies, crowdlending becomes not a backup option, but a real source of growth, for which they are willing to pay a higher rate.
Reason 2. Paying for Speed (Opportunity Cost)
In business, time is often more important than the interest rate on a loan.
Imagine a situation: a construction company wins a contract. To start work and make a profit, materials need to be purchased immediately.
The banking route means months of waiting and the risk of rejection.
Through 8lends and Maclear, the process takes significantly less time: application, audit, and access to funding without unnecessary bureaucracy.
If a project brings in 50% or 100% profit, a rate of 18–25% looks justified for the business.
The entrepreneur shares a part of the future income so as not to miss the opportunity.
Reason 3. We Removed the Banking Middleman
In the classical financial model, there is always a bank between the investor and the business.
The investor receives a few percent on a deposit, while the business pays significantly more — not just interest, but also commissions, insurance surcharges, account maintenance, and internal bank expenses.
This difference remains inside the banking system and practically does not reach the investor.
The 8lends model works differently.
We directly connect investors and companies that need capital, without the cumbersome banking infrastructure. The business still pays the market rate for the loan, but now the majority of this yield is distributed among investors rather than settling with intermediaries.
Simply put, the economics of the loan remain the same, but who receives the profit changes.
And in this model, both sides win: the business gets access to funding, and the investor gets a fair return.
Summary
A yield of 18–25% per annum is formed from three understandable factors:
- Limited business access to bank funding;
- The value of obtaining capital quickly;
- Reduction of banking costs in the chain.
This is a market model of private lending, where real business pays for access to capital, and the investor receives a return reflecting the real conditions of this market.