Glossary

Private credit

What private credit means as a lending category, and how private lenders differ from banks and specialist funds.

Private credit refers to lending funded by private capital — wholesale investors, family offices or dedicated private lending businesses — rather than by a bank's deposit base or a fund's public mandate. Private lenders typically fill the space banks move too slowly or conservatively for: caveat loans, second mortgages, and construction or mezzanine facilities on projects that do not fit a bank's standard credit box. Because private credit is not funded or regulated in the same way as bank lending, it can move faster and assess more flexibly, but is generally priced higher to reflect that flexibility and the private lender's own cost of capital. Solara arranges finance across banks, private lenders, non-bank lenders and specialist funds, matching each enquiry to whichever part of the panel genuinely fits the security, timeframe and risk involved rather than defaulting to private credit by habit.

Related

Caveat loans · Non-bank lender · Specialist fund

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