Private Credit vs. Banks: How Private Credit Empowers Businesses When Banks Won’t

The Funding Solution When Banks Say No

In today’s financial landscape, businesses seeking capital are running into a common roadblock—banks simply aren’t lending the way they used to. While major banks have slightly loosened their lending criteria after a period of extreme contraction, they’re still pushing most businesses toward SBA loans, which come with rigid requirements, lengthy approval processes, and personal guarantees.

At Tzortzis Capital, we do everything banks can do—and more. Unlike traditional lenders, we don’t require long-standing banking relationships or force clients into one-size-fits-all loan structures. We craft funding solutions tailored to your business, stacking capital to ensure you get the funding you need. Whether you require working capital, a line of credit, or a hybrid financing structure, we have the flexibility banks lack.

Private Credit: A Smarter Way to Fund Growth

Traditional lending institutions have left a massive funding gap, and private credit is filling that void. Companies need capital for expansion, acquisitions, and operational stability, but banks remain hesitant. That’s where private credit lenders step in.

We provide a range of customized private credit solutions, including:

• Term Loans & Lines of Credit – We provide short to medium-term financing options ranging from 1 to 3 years, with interest rates between 10% and 20%. Loan amounts start at $50,000, and both secured and unsecured options are available. A comprehensive financial package is required for application, and funding can be secured within 1 to 3 weeks.

  
  

• Equipment Financing – Designed to support businesses in acquiring essential equipment, we offer financing terms from 1 to 7 years, with interest rates between 7% and 14%. Funding amounts start at $50,000, and even startups can qualify. An equipment invoice is necessary for application, and funds are typically disbursed within 1 to 4 weeks.

  
  

• Asset-Based Lending – We offer financing secured by assets such as real estate, accounts receivables, purchase orders, inventory, contracts or equipment. Terms range from 1 to 3 years, with interest rates between 10% and 20%. This option is ideal for businesses seeking to leverage existing assets for capital.

  
  

• ESOP (Employee Stock Ownership Plans) Financing – We assist businesses in implementing ESOPs, providing terms from 3 to 10 years and interest rates between 6% and 9%. Eligible companies should have a minimum EBITDA of $1 million. ESOPs offer significant tax advantages, including the 1042 tax election, and the funding process typically takes 4 to 6 months.

  
  

• Investment Banking Solutions – Our investment banking solutions cater to substantial financing requirements, offering both debt and equity options. Terms range from 1 to 10 years, with interest rates between 8% and 15%. Financing amounts start at $20 million, and a full financial package is necessary for application. The funding process takes 4+ weeks.

  
  

• Bonds – For large-scale financing needs, we facilitate bond issuances with maturities ranging from 1 to 20 years and issuance fees between 1% and 5%. The minimum issuance amount is $100 million, encompassing corporate bonds, municipal bonds, and green bonds. The issuance process spans 6 to 24 months.

  
  

What Banks Won’t Do, We Can

One of the biggest advantages of working with a private credit lender like Tzortzis Capital is that we offer creative and flexible financing solutions that banks simply don’t or can't provide.

Key Benefits of Private Credit vs. Banks:

✅ No Banking Relationship Required – Unlike banks that demand long-term relationships, we assess opportunities based on business fundamentals, not past banking history.

✅ Capital Stacking to Maximize Funding – Need a line of credit and working capital? We structure multiple financing solutions together to get you the amount you need.

✅ Speed & Flexibility – Traditional banks can take months to approve loans. We move quickly, often securing funding in days to weeks.

✅ Fewer Restrictions – Banks often limit funding to specific uses, while private credit allows businesses to allocate funds as needed.

✅ Beyond Funding: A Business Growth Hub – At Tzortzis Capital, we’re more than lenders—we’re partners in your business success. Our network of legal, HR, accounting, technology, marketing, and operational experts ensures that our clients have access to the resources needed to scale and sustain growth.

Real-World Success: How Private Credit Fuels Growth

Case Study: A Manufacturer’s Expansion Blocked by Banks

A mid-sized manufacturing firm sought a $3 million loan to upgrade its production line. After multiple bank rejections due to "economic uncertainty," they turned to private credit. 

We structured a capital stack solution consisting of:

• $2 million asset-based loan secured by equipment

• $1 million working capital line of credit

Within six weeks, the company had the funds needed to expand production, leading to a 40% increase in output and a new multimillion-dollar contract.

Case Study: Retailer Scaling with Smart Capital Stacking

A fast-growing retail chain needed $5 million to open new locations. Banks offered only SBA-backed financing, requiring personal guarantees and extended approval times. 

We structured a:

• $3 million term loan for real estate expansion

• $2 million inventory-based line of credit

With flexible repayment terms, the business expanded aggressively, capturing more market share without the constraints of traditional financing.

Final Thoughts: Why Private Credit is the Future

Banks continue to tighten lending, leaving businesses struggling for capital. We are is bridging that gap. With customized financing, capital stacking, and expert business resources, we empower companies to grow—without the roadblocks of traditional banking.

If you need funding, let’s talk. We’ll structure a private credit solution that works for you—no bureaucracy, just results.