# private credit

idiom

Source: https://englishreference.com/idiom/private-credit
Updated: 2026-08-10

## Meaning

An aspect of the shadow banking system involving assets defined by non-bank lending where the debt is not issued or traded on the public markets, unlike corporate bonds and municipal bonds.

## Examples

- The small company received private credit instead of a bank loan.
- Because traditional banks refused to lend them money, the business owners turned to private credit to fund their expansion.
- Institutional investors are increasingly allocating capital toward private credit, seeking higher yields in a market where debt remains shielded from public exchange volatility.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.