Private credit represents a form of debt financing, structured through direct negotiations with non-bank institutions. It spans a range of financial products, including personal loans, venture funding, and debt provided to small enterprises outside of traditional banking channels.
One of the key advantages of private credit is the flexibility it offers in structuring terms. Unlike traditional bank loans, private credit arrangements can be tailored to suit the specific needs of borrowers, including customized repayment schedules and less restrictive covenants.