Park money with unsecured SME loan providers to earn high interest

Will anyone park money with unsecured working loan provider, such as to collect monthly high interest of about 12% p.a. The service provider(SP) was already set up 20 over yrs. My friend has parked 6 figure savings with the SP.

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It has good testimonials from mainly SME business owners as working loan. This SP also serves a small group of non business owners, but will scrutinise the applications, whether business or non-business borrowers . I understand from my friend who parks money with them for close to 20 yrs & has no default of monthly interest even during Covid times, though interest has dropped from 18 to 12% p.a. since Covid. The fund can be withdrawn I can't really remember in a month time or what. But the 1st investment must be locked in for 3 months. So far, no complaints of problem with fund withdrawal. In fact, it has T&C of the borrowers they loan to. Some are asset rich but cash poor, so bank is unwilling to loan to them. Most of the time, the SP will still try to secure loan for borrowers through bank as a first loan approach, even these borrowers have rejected from banks. The success rate is high. Asset/ company business shares, even tangible asset, rolex, gold bar, etc of the borrowers will need to pledge to the SP in exchange for the loan. I am not too sure if this only applies if borrowers' loan application were rejected despite the best effort attempted by the SP.