Private credit financing involves more than interest rates and financial covenants. Collateral requirements, borrowing-base mechanics, acquisition flexibility, and lender execution capabilities can significantly influence a company's access to capital. This article examines the structural provisions borrowers should evaluate to preserve financial flexibility and support long-term growth.

Private credit pricing goes beyond interest rates. Covenants, repayment terms, collateral requirements, and lender flexibility all influence the true cost of borrowing. Understanding these factors can help businesses evaluate financing options and make more informed capital decisions.

Software private credit is evolving as lenders reassess leverage, pricing, liquidity, and recurring-revenue structures across large-cap and lower-middle-market deals.

A credit memo is more than a summary of a borrower’s financial performance. It is the underwriter’s case for why a specific risk should be approved on specific terms. This article explains what investment committees evaluate across business quality, cash flow, leverage, liquidity, collateral, risk mitigants and transaction structure—and how borrowers can prepare the evidence and third-party diligence needed to withstand lender scrutiny.

I have worked in the credit markets since 2006, first as a bank and non-bank credit investor and, more recently, advising borrowers through Axis Group Ventures. Across venture debt, asset-based lending, recurring-revenue facilities, cash-flow loans, structured credit, and other private-credit transactions, I have seen lending relationships evolve through many stages of a company’s life. Sometimes a refinancing is driven by financial pressure. Sometimes a company has simply ou

Private credit has no shortage of capital. The more important question is whether that capital is supported by the expertise required to understand a borrower, assess its risks, and structure a financing around its actual cash-flow profile. That distinction is becoming increasingly important. Two companies can report similar revenue, growth, and EBITDA yet present very different credit risks because of differences in customer behavior, regulation, revenue composition, working

For years, annual recurring revenue was the shorthand for software quality. ARR suggested predictability, retention, visibility, and scalability. In a low-rate market, that was often enough to support aggressive valuations and a wide range of financing options. Recurring revenue still matters. For SaaS and enterprise software companies, it remains one of the strongest foundations a borrower can bring to a lender. But ARR is no longer the whole story. In today’s private credit

Private wealth is becoming one of the most important growth channels for private markets. As RIAs increase allocations to private credit, secondaries, and alternative investments, the challenge is no longer access alone. Success will depend on due diligence, liquidity management, portfolio construction, and client education. The advisors who apply institutional-quality standards will play a key role in shaping how private markets are incorporated into wealth portfolios.

Growth-stage companies across North America are becoming increasingly selective about equity dilution as venture fundraising timelines lengthen, valuation discipline tightens, and liquidity events remain constrained across private markets. In a market defined by longer fundraising cycles, valuation pressure, and higher capital costs, founders are reassessing how growth capital is structured. Non-dilutive funding, once viewed as supplemental financing, has become a core part o

NAV lending has become a more active part of private market financing as sponsors and growth-stage companies look for liquidity without immediate equity dilution. The structure works well when asset value is strong but cash flow visibility is uneven. According to Oaktree Capital, NAV financing activity rose roughly 30% year-over-year in North America and 20% in Europe in 2023, with total deal flow more than doubling between 2020 and 2023 to reach $44 billion.¹ The challenge i

Private credit, specifically warehouse financing, has become the gating factor for whether many fintech lenders can scale. For equity investors, lawyers, and advisors in the ecosystem, the key question is no longer just “can this company originate loans?” It is: can it access, maintain, and scale institutional credit? Why This Matters for Equity Investors For venture investors in fintech lenders, warehouse financing is not just a funding tool, it is a constraint on growth, a

In today’s market environment, access to capital is no longer the primary constraint. Alignment is. Growth-stage companies are finding that traditional options, whether bank debt or equity, often do not match the pace or structure required for expansion. Private credit has emerged as a strong alternative. Not only because it is faster or more flexible, but because it can be used as part of a broader capital strategy. This is often supported by experienced debt capital advisor

For many founders and CFOs evaluating financing options, one of the first questions is whether their company is better suited for cash flow lending or asset-based lending (ABL). Both structures can provide meaningful access to capital, but they operate very differently. Cash flow loans are typically sized based on earnings performance and credit metrics, while asset-based lending facilities are structured around specific collateral such as receivables, inventory, or equipment

Inventory financing plays an important role in sectors such as retail, direct-to-consumer (D2C), and manufacturing. This is evident in the growth of the global asset-based lending market, projected to reach $891.89 billion in 2025 and surpass $1 trillion by 2026 .¹ In higher-rate and more volatile environments, lenders have placed greater emphasis on downside protection within credit structures. While cash-flow underwriting remains central to most private credit transactions

Image sourced from Unsplash This article is Part 2 of last week’s post on how founder-led companies are reshaping their capital options. If you missed Part 1, it introduced the rise of non-sponsor private credit and why more founders are exploring alternatives to banks or equity sales. In this second installment, we turn to the practical side: how founder-led companies actually use private credit, and what the data really says about common misconceptions. This isn’t theoretic

Image source: Unsplash Founder-led businesses in the lower middle market often find themselves in a tight spot. They need capital to grow, support working capital, acquisitions, capital equipment, and even shareholder dynamics (buyouts and liquidity events). However, business owners are often hesitant to give up ownership, or control, and funding options can be limited. Survey data supports the strength of that ownership instinct . In a recent global study of family and foun

Image by Unsplash Private credit, once a specialized channel, now anchors global corporate finance, with over US $3 trillion in AUM. As banks recalibrate under regulatory pressure, private lenders have stepped in to fill the void, redefining how debt capital is sourced and deployed. The shift is structural and increasingly systemic. Scaling to Norm U.S. private credit surpassed US $1.3 trillion by mid-2024; globally, the market now exceeds US $3 trillion. Banks’ retrenchment

Issue - October 2025 This piece was originally published in our Axis Capital Markets newsletter . To get future issues straight to your inbox, sign up here: axiscapitalmarkets.beehiiv.com 🔷Liquidity by Design: How Secondaries Are impacting Private Credit Private credit secondaries have shifted from being a niche solution to a core component of the market’s architecture. What was once viewed as opportunistic has become integral to the way private credit capital is recycled,

Why Debt Matters for VC-Backed Companies Equity has been the growth engine for startups, but debt is increasingly a strategic complement . Importantly, the value of debt depends on a company’s business model : SaaS companies often use recurring revenue lines or venture debt tied to ARR. Consumer goods companies benefit from AR/working capital lines. Fintechs often rely on warehouse or forward-flow facilities. Life sciences and hardware firms frequently need equipment fina

As investors search for alternative assets with staying power, music royalties are quickly gaining traction—and for good reason. They offer a rare combination of recurring income, low correlation to traditional markets, and cultural relevance. According to SongVest , music royalties are gaining popularity as an alternative investment—and for good reason. They offer a unique mix of steady income, diversification, and cultural value that few other assets can match. Here’s why