
Private Credit vs Bank Loans: Pros and Cons
Private credit is faster and more flexible—terms can be tailored and deals can close in weeks—but you’ll typically pay higher rates and fees and may face tighter covenants. Bank loans are cheaper and build credit with regulated, standardized structures, yet require extensive documentation and can take 60–90+ days to fund. Choose private credit for time-sensitive, complex transactions; choose bank loans when cost and long-term predictability matter most.
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