Get Credit - Private Customer

Private credit funds are specialized operations within larger financial institutions. Examples include private equity firms and investment banks like Blackstone, Apollo Global Management, Carlyle Group, Morgan Stanley, and Goldman Sachs.

Regulators worry that investors in private credit—any of them new to the business of lending to small and mid-size firms—may refuse to roll over loans in an economic downturn, leaving highly leveraged, higher risk firms that have borrowed from private credit funds vulnerable and unable to refinance their debt.

THE RISE OF PRIVATE CREDIT Private credit — which accounts for all debt that is not issued or traded publicly — is a loosely defined market that mushroomed over the past decade due in large part to higher interest rates and regulation that forced banks to retrench from their own leveraged lending.

Consumer credit, or consumer debt, is personal debt taken on to purchase goods and services. Although any type of personal loan could be labeled consumer credit, the term is more often used to describe unsecured debt of smaller amounts.

With their debt-like nature, private credit investments generally offer lower risk and more stable, predictable returns. These investments typically come in the form of secured loans, which means they have a higher claim on assets in the case of default, making them less risky than equity investments.

The credit customer is the customer that you contact for credit management purposes (e.g., processing sales orders for credit hold purposes). All billing customers are assigned a credit customer. In a simple scenario, the billing customer code and credit customer code are the same.

The debt instruments purchased by the fund are subject to the risk that a borrower will default on the payment of principal, interest or other amounts owed. The financial strength and solvency of the issuer, including the lack or inadequacy of any collateral securing repayment affect credit risk. o Interest Rate Risk.