Private Credit Solutions for Business Growth and Liquidity
Private Credit Solutions for Business Growth & Liquidity
Private credit has evolved from a niche product into a mainstream financing tool for corporations, sponsors, and management teams across industries. When traditional banks pull back or take too long to decide, private credit steps in to deliver speed, flexibility, and structures that match real-world business needs. This guide explains how companies raise funds through private credit, what use cases drive demand, how deals are structured, and how Financely supports sponsors through underwriting, structuring, and distribution.
The Role of Private Credit in Today’s Market
The global private credit market now exceeds $1.7 trillion in assets under management. What makes it attractive is the direct lending model: funds, specialty lenders, and institutional investors provide financing directly to borrowers without syndication delays. Borrowers benefit from faster execution, bespoke covenants, and creative structures that traditional banks avoid.
Private credit is not just for distressed situations. It is widely used by healthy companies seeking working capital, acquisition financing, expansion capital, or shareholder liquidity. For sponsors and CFOs, the appeal lies in execution certainty and flexibility, even if pricing is higher than bank debt.
Core Use Cases for Private Credit
Businesses raise private credit for a range of purposes. Below are the most common categories:
| Use Case | Typical Objectives | Facility Range |
|---|---|---|
| Working Capital | Supplier payments, payroll, seasonal cycles, liquidity buffers | $25M–$250M |
| Acquisitions & MBOs | Sponsor-backed buyouts, management-led takeovers, bolt-ons | $50M–$500M+ |
| Expansion & CapEx | New facilities, equipment, technology, market rollouts | $30M–$300M |
| Dividend Recapitalizations | Liquidity for shareholders without selling equity | $25M–$150M |
| Turnarounds & Special Situations | Rescue financings, distressed refinancings, bridging urgent liabilities | $20M–$200M |
| Contract-Backed Financing | Funding secured against offtake, supply, or service contracts | $25M–$400M |
| Sector-Specific | Technology, healthcare, services, and non-asset-heavy industries | $25M–$500M |
How Private Credit Structures Work
Private credit is not one product but a spectrum of structures. Depending on the use case, facilities can be structured as senior secured loans, unitranche facilities, mezzanine debt, or structured receivables programs. Pricing reflects risk: stable cash flows and asset coverage attract lower margins, while higher-risk turnarounds may command double-digit yields.
Key variables include tenor (usually 3–7 years), amortization (interest-only or cash-pay), covenants (financial, operational, reporting), and collateral (assets, contracts, or equity pledges). Sponsors and CFOs must balance speed and flexibility against higher costs compared to traditional bank debt.
What Sponsors Should Expect
- Comprehensive due diligence on financials, operations, and contracts
- Underwriting timelines of 4–8 weeks depending on complexity
- Pricing linked to risk profile, sector, and structure
- Ongoing reporting obligations to lenders
While pricing is higher than bank loans, the strategic value of execution certainty often outweighs cost. Missing an acquisition or expansion due to lack of financing can be more expensive than paying a few hundred basis points more.
Financely’s Role
Financely is not a direct lender. We act as arranger and advisor, bridging the gap between sponsors and specialty lenders. Our services cover credit analysis, financial modeling, structuring, preparation of data rooms, negotiation of covenants, and distribution to funds and family offices. Because we manage both underwriting and placement, sponsors deal with one point of contact rather than a fragmented process.
Request a Quote for Private Credit Solutions
Financely arranges $25M–$500M+ facilities for working capital, acquisitions, expansions, dividend recaps, and special situations. Engagement fees start at $25,000 and scale to $150,000+ depending on scope.
Request a QuoteFrequently Asked Questions
How much can companies raise through private credit?
Facilities typically range from $25M to over $500M. The amount depends on cash flows, collateral, contracts, and sponsor strength.
How long does the process take?
Expect 4–8 weeks for underwriting and closing, depending on complexity and data room readiness.
What is the cost of private credit?
Margins range from SOFR + 400bps for lower-risk loans to double-digit yields for special situations. Financely engagement fees start at $25,000.
What types of businesses qualify?
Post-revenue companies with credible cash flows, strong contracts, or asset backing. Preferred EBITDA > $10M.
Financely is an advisory and placement firm. We are not a direct lender. All financings are subject to due diligence, credit approval, and executed documentation. Engagement fees for private credit mandates start at $25,000 and can exceed $150,000 depending on complexity. Placement fees are payable on successful closing.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
