Private credit — also called private lending — is lending done by non-bank firms and institutions instead of traditional banks. As banks have pulled back from parts of business and commercial-real-estate lending, private credit has grown into one of the largest asset classes in finance — north of $1 trillion in the U.S. At its core, a private lender makes a loan, often secured by real estate, to a business that can't access or can't wait on a bank — underwritten on the asset, the operator, and a clear repayment plan. It's a space that was historically reserved for banks and large institutions.
Why it grew: for decades, business capital ran through banks. But since 2019, small-business loan approval rates have fallen sharply, and banks have stepped back from whole categories of commercial real estate. Private lenders moved in to fund the creditworthy borrowers left on the table — and the asset class expanded from a niche into the mainstream.
How the loans are structured: a typical real-estate-secured private loan is shorter-term, secured by commercial or residential property, and underwritten on three things — the value of the collateral, the strength of the operator, and a clear plan to repay, usually a refinance or a sale. That structure is what defines the asset class.
Where BuildUp fits: we're a private lender making real-estate-secured business loans across nine Western states, and we invest our own capital in every loan we make. We underwrite the company, the owner, and the collateral — not just a credit score.
A plain note on learning more: private credit is nuanced, and it isn't the right fit for every person or every situation. We won't quote numbers on the internet — but if you want to understand how the asset class actually works, plainly and from a real person, that's a conversation we're always glad to have. Educational only — this isn't an offer to buy or sell any security, and it isn't investment advice. All investing involves risk.
Want to understand how investing with BuildUp works? It starts with a few details, then a call — talk to Investor Relations →
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