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Borrower Guide

What Is Private Credit

A plain language introduction to private credit: who lends, who borrows, and how these loans differ from bank lending.

Overview

Placeholder introduction. Private credit refers to loans made by non-bank lenders, including private funds, business development companies, and specialty finance firms, typically negotiated directly between the lender and the borrower rather than issued through public markets.

The private credit market has grown to an estimated $1.5 to $2 trillion in assets (Financial Stability Board, Report on Vulnerabilities in Private Credit, May 2026).

How these loans are structured

Placeholder section. This guide will describe common structures, including senior secured loans, unitranche facilities, bridge loans, and mezzanine or preferred equity positions, and how each allocates risk between borrower and lender.

What borrowers should ask before proceeding

Placeholder section. This guide will set out the documentation a borrower should request, the fees and reserves to identify, and the enforcement rights a lender may hold.


CPCA is a nonprofit oversight organization and not a law firm. This guide is general information, not legal or financial advice. Consult a licensed attorney in your state.

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