The Rise of Private Capital

Private capital is quietly reshaping the way mid-market businesses finance their growth, as a key driver in business expansion. With over 60% of mid-sized companies now opting for private capital solutions, the trend is clear: businesses are seeking flexibility, speed, and custom financing options that cater to their unique needs. According to a 2023 report by Deloitte, private debt markets saw a 15% increase as more businesses shifted towards alternative financing sources. This rise recognizes that private capital offers a more adaptable solution to companies eager to expand quickly without the long approval processes often associated with traditional bank financing options.

What's Driving the Shift:

What makes private capital so appealing? One reason is the regulatory framework—or lack thereof. Unlike banks, private capital lenders are not bound by the same stringent rules, allowing them to offer customized solutions tailored to each business’s specific needs. Banks are often restricted by capital reserve requirements and compliance processes, which can hinder their ability to respond to unique financing needs quickly.

In contrast, private lenders have the freedom to assess risk on a case-by-case basis, enabling them to support a diverse range of industries and equipment types. This flexibility is crucial for businesses seeking to finance equipment, expand operations, or capitalize on time-sensitive opportunities. Additionally, private capital lenders are known for their speed. Many can offer approvals in as little as 48 hours, enabling businesses to act quickly when traditional financing might delay their growth. This ability to move swiftly is becoming increasingly important in a fast-paced business environment.

The Right Financing for the Right Business

It’s not about banks versus private capital—it’s about the right tool for the job. While banks provide stability and longstanding financial relationships, private capital steps in where traditional financing may not be the best fit. Whether it's due to more complex credit situations or the need for a fast turnaround, private capital says yes when banks might say no. As businesses navigate a competitive and ever-changing market, having access to diverse financing options empowers them to grow, innovate, and stay ahead. Private capital is proving to be the quiet partner in making that happen.