Put simply, we make a spread between what is paid to you (5%) as a bondholder and the return generated when the bond proceeds are put to work in loans and other investments.
Proceeds from the sale of Worthy Bonds are used in part to fund inventory (or asset) backed loans to growing U.S. businesses, with an additional portion directed to a variety of investments (such as real estate, Treasuries and CDs) to ensure a diversified portfolio that can generate a yield from which to pay bondholders the 5% interest.
Between interest on the loans made and the combination of other investments, a greater return than the 5% is generated and we fund our operations using this difference. Our business model allows us to operate while keeping our product free for our Worthies. As a bonus, we help small businesses grow!