• Private credit managers lend more than £100 billion to over 2,000 UK firms
• Industry set to play a key role supporting UK business recovery post-COVID 
• The guide provides case studies of how private credit has helped businesses and a jargon- busting glossary of key terms 
• This guide will help UK SMEs understand the range of alternative financing options available to them 

A new paper published by AIMA’s Alternative Credit Council (ACC) provides business owners with a comprehensive guide to accessing private credit.

Despite the growth of the private credit industry in the UK over the past decade, many business owners remain unfamiliar with private credit lenders.

The ACC’s introductory guide highlights the ongoing SME finance gap and how the growing private credit market can provide new capital for UK businesses.

As the guide highlights, private credit managers are well equipped to work in partnership with borrowers to help them grow and develop their business. Private credit managers already lend more than £100 billion to over 2,000 UK firms.

The guide provides an outline of how these lenders assess a business’ growth potential, a jargon- busting glossary of key terms, as well as case studies highlighting real life examples of how private credit has helped businesses invest and innovate. Examples of the featured case studies are included below.

In addition, this guide will help business owners understand the questions private credit lenders will ask as part of their due diligence, what to expect in a loan agreement, why lenders ask questions about sustainability and what they can expect once a loan has been made.

It is more vital than ever that SMEs across the country have access to the finance to invest and adapt to newer trends in customer demand and behaviour. This guide will help SMEs understand the range of finance options available to them and empower them make the right choice for their business.

Jiří Krόl, Global Head of the Alternative Credit Council, commented:  “Private credit managers are an increasingly important part of the business finance market, providing borrowers with tailored and flexible access to credit. Our industry moved quickly to provide support to businesses during the pandemic and will be instrumental in fuelling the recovery.”

Milly Camley, CEO, The Institute for Turnaround, commented:

“After sustained and unprecedented challenges, we welcome opportunities for businesses to access different finance options as they transform and adapt in a period of recovery. This report provides an accessible and articulate overview of the evolving and important private credit sector.”