Borrower Education

The problem

Private credit documents are negotiated individually and drafted for the lender. Terms that determine the true cost and risk of a loan, including interest reserves, draw approval standards, personal guarantees, default definitions, and modification mechanics, are frequently understood only after they are triggered.

The population of borrowers exposed to those terms keeps growing: private credit assets under management are projected to approach $4 trillion by 2030.

Source: Moody's, Private Credit Outlook 2026.

What CPCA does

CPCA publishes guides and plain language resources on loan structures, interest reserves, default provisions, personal guarantees, and loan modifications, so borrowers understand what they are signing before they sign it. Every guide is free, non-commercial, and written without reference to any specific lender.

Read the borrower guides or consult the glossary of private credit terms.

The outcomes we seek

• Borrowers who can read a term sheet and identify what shifts risk onto them.
• Written questions asked before closing rather than after default.
• A shared vocabulary among borrowers, advisors, and policymakers for describing private credit structures.

CPCA is not a law firm and does not provide legal or financial advice. Borrowers should consult a licensed attorney in their state.