Private debt financing for small and medium-sized enterprises

Private debt finan­cing origi­na­ted in the Anglo-Saxon world, where it has long been used as an estab­lished instru­ment in growth finan­cing and corpo­rate take­overs. One of the reasons why private debt provi­ders are attrac­tive is that they can also provide finan­cing where the banks turn them down, for exam­ple if a company’s cash flow profile does not permit repay­ments in the short term. Another advan­tage of debt funds is that their decis­­ion-making is not as domi­na­ted by inter­nal poli­tics as in many banks.