From Yahoo Finance: 2025-05-29 06:03:00

Tariff uncertainty and market volatility are leading companies to seek funding from private credit firms over traditional lenders. Private credit, a $2 trillion industry, has grown significantly due to market choppiness. Companies like Lakeview Farms are opting for private credit due to flexible financing options. Syndicated loans in the U.S. have declined by 15% this year, while direct lending transactions have only fallen by 10%.

Private credit may be more expensive but offers flexible terms for structuring transactions, including loan terms, repayment schedules, and collateral requirements. The growth in private credit came after stricter regulations post-financial crisis made it more expensive for banks to finance risky loans. Large Wall Street lenders like JPMorgan Chase and Goldman Sachs are also participating in direct lending deals.



Read more at Yahoo Finance: Analysis-Companies turn to private credit during tariff turmoil for loans