Lender Selection
How to choose a private credit lender
A term sheet is just the start. The lender behind it determines whether your deal closes in 30 days or dies in committee. Here are the eight questions to ask before you sign.
Do they write your check size?
The #1 filter. If your deal is $30M and the fund writes $100M minimum, you're dead on arrival. Look for overlap, not adjacency.
How fast can they close?
A fund with a 30-day close target operates differently than one with a 90-day committee process. Match their timeline to yours — speed mismatches kill deals.
Do they require a sponsor?
Many private credit funds only lend to PE-backed companies. If you're founder-owned, filter for non-sponsor or sponsor-optional lenders.
What's their hold size vs facility size?
A fund may arrange a $500M facility but only hold $50M. If you need $75M, they'll need syndication partners — that adds time and complexity.
Do they have a minimum EBITDA?
Some funds require $10M+ EBITDA. Others have no minimum. Know your number and target accordingly.
Have they done deals in your sector?
Industry expertise means faster diligence and better terms. A lender who knows healthcare regs or SaaS metrics won't stumble on deal-specific issues.
Are their deal-team contacts reachable?
A great mandate with no reachable deal-team contact is worthless. Prioritize funds where you can reach a named person — not a generic info@ address.
Do they syndicate or hold?
If they syndicate, your deal gets shopped to other lenders — you lose control of who sees it. If they hold, you have one counterparty.
From our live dataset
- · 31 lenders can close in 30 days or less
- · 59 lenders have disclosed sponsor requirements
- · 3 lenders explicitly state no EBITDA minimum
Search lenders by these criteria
Filter by check size, close speed, sponsor requirements, and more. Free, no account.
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