Increasingly, small businesses are turning to private credit to fund business expansions or ongoing operational costs. Private credit accounted for roughly 30% of the credit market in 2021, growing from $400 billion in assets to over $1 trillion since 2012.

This type of financing usually comes with flexible terms, customized solutions and fast access to capital. So, if your company needs funding but you don't want to apply for a traditional bank loan, here's how private credit works and how you can access it.

Related: How Alternative Funding Solutions Can Help Your Business Navigate The Ongoing Financial Storm

The term private credit usually refers to non-bank loans issued to businesses — peer-to-peer lenders, online lenders and financing marketplaces are all examples of this. This financing option has been especially helpful for small businesses recently, considering banks aren't lending to businesses due to market conditions and their notorious risk-averse behavior.

Private credit gives companies access to various short-term and long-term financing options. Your company can then use this financing to fund startup costs, a business expansion or working capital.

Here are the biggest benefits of private credit for small businesses:

Fast access to capital: When you apply for a........

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