ELI5: Explain Like I'm 5

private credit

Private credit is money that is lent from an individual or company to another individual or company. It is not the same as borrowing from the bank. When someone borrows from the bank, the bank is the lender, and the bank keeps track of the money it loans and making sure the borrower pays it back. With private credit, the lender can be a person or company who lends out their own money, instead of a bank. The lender keeps track of the money they lend, and the person or company that borrows it has to pay it back. Private credit can be used for many things, like buying a house, starting a business, or even taking out a loan for a car.
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