(17 January 2025 – Australia) Private credit is offering speed, flexibility and variety to smaller companies banks can’t match, Capital Brief reports.
The smaller end of the corporate market is far more attracted to private credit than the big end of town, according to new research by East & Partners on the fast-expanding sector.
Only 16 percent of the Top 100 enterprises by revenue (A$725 million plus) expect to use private credit, and just one in ten have done so (12 percent).
In contrast, 42 percent of upper commercial participants A$100 – 725 million) expect to use private credit, with 15 percent having already accessed it.
The findings bear out Capital Brief’s broader reporting on the sector, which suggests smaller and more niche businesses are attracted to private credit due to its flexibility compared to traditional bank funding.
“There is a really big divergence in reasons to use or not use private credit between the top 100 and upper commercial sector,” East & Partners Global Head of Markets Analysis Martin Smith told Capital Brief.
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