Private credit enables direct lending between a borrower and lender without a traditional financial institution in the middle. The largest lenders of private credit funds are pension funds, insurance companies, family offices, sovereign wealth funds and high net worth individuals.

The main difference between getting a loan from a bank versus a private credit lender is that the private lender will generally accept riskier loan customers than a bank. However, the interest rates from private lenders tend to be higher than interest rates from banks.

Working Capital Loans, Term loans, Lines of Credit, and Equipment Financing generally require a minimum of one year in business, revenue of $20,000 a month and at least a 650 FICO score. Revenue-Based loans are most popular for short-term needs and require 4 months of business checking account statements, a minimum 650 FICO and a minimum of $20,000 a month revenue. Minimum loan size is $50,000.

Using private credit lenders can offer several advantages: 1. Flexibility in Loan Terms and Structure: Private lenders tend to have more flexibility with loan terms compared to traditional banks. This allows for customized loan structures that can better meet the specific needs of borrowers. 2. Faster Processing and Approval: Private lenders can approve applications and disburse funds more quickly than traditional banks. This can be particularly beneficial for businesses that need quick access to capital. 3. Higher Approval Rates: Private lenders often have higher approval rates for borrowers with less-than-perfect credit scores. This makes it easier for businesses and individuals with lower credit scores to obtain financing. 4. Access to Capital: Private credit provides access to capital for businesses that may not qualify for traditional bank loans. This can be especially important for small and mid-sized companies that need financing for operations, acquisitions, or balance sheet improvements¹. Overall, private credit lenders can provide more flexible, faster, and accessible financing options for borrowers, while offering attractive returns for investors.

No, Hardstone is a private credit broker, not a direct lender. We use our own discreet sources and partner with two well-respected brokerage teams in New York, to give our clients access to a network of over 75 private credit lenders.