Strictly private financing, including private debt and equity, offers significant advantages for companies, entrepreneurs, and founders. These benefits often center on speed, flexibility, control, and privacy, which traditional public markets and bank loans may not offer. 
 

For the company

• Faster and more efficient funding: Unlike traditional bank loans with their extensive paperwork and regulatory oversight, private financing can be secured in a matter of days or weeks. For companies facing tight deadlines or trying to seize time-sensitive opportunities, this speed is a major competitive advantage.

• Customizable loan terms: Private lenders can tailor financing solutions to meet a company's specific needs, offering flexibility in areas like loan structure, repayment terms, and amortization schedules. This is particularly valuable for businesses with non-standard financial models, such as those with seasonal revenue swings.

• Higher approval rates and more lenient criteria: Private lenders are often willing to take on higher risks than traditional banks. Instead of focusing heavily on credit history, they evaluate a business's long-term potential, cash flow, and assets. This makes it a viable option for early-stage companies, those with less-than-perfect credit, or businesses in specialized or higher-risk industries that banks tend to avoid.

• Enhanced relationship and expertise: Private lenders often take a more hands-on approach, providing valuable strategic guidance, industry expertise, and networking opportunities. This creates a long-term, supportive partnership that extends beyond just providing capital. 

For founders and owners

• Preservation of ownership and control: With private credit (debt financing), founders can access capital without diluting their ownership stake. This allows them to maintain a greater percentage of equity and retain full operational and strategic control over their company. In contrast, public market investors typically demand influence in major business decisions.

• Long-term focus: Since private companies are not subject to the pressure of appeasing public market analysts or meeting quarterly earnings expectations, founders can focus on long-term strategic goals and sustainable growth. This avoids the shortsighted, quarterly-driven decision-making that can plague public companies.

• Privacy and confidentiality: Private companies are not subject to the same rigorous financial disclosure and reporting requirements as public companies. This provides a protective barrier around sensitive financial and operational information, which can be critical for maintaining a competitive edge.

• Access to capital when markets are volatile: During periods of economic uncertainty or when public markets tighten, private credit can be a more stable and predictable source of funding. Private lenders can deploy capital reliably, helping companies weather economic downturns.