Learn Guide
How Private Credit Really Works
What really drives lender decisions behind the scenes.
Policy does not equal decision
Every private credit fund publishes lending guidelines. LVR limits, loan sizes, geographic preferences, security types. Brokers study these and match deals accordingly. But published policy is only part of the picture.
The real decision happens inside the credit committee, shaped by factors that never appear on a product sheet: current capital allocation, portfolio concentration, the risk appetite of key decision-makers, and timing.
What actually drives decisions
Capital allocation
Funds have finite capital. A deal that fits perfectly on paper can be declined because the fund is over-allocated to that asset class, geography, or borrower segment this month.
Credit committee psychology
Committees are people. They remember the last deal that went wrong. They have preferences that shift with market conditions, media coverage, and portfolio performance.
Discretion
Private credit is inherently discretionary. Two identical deals can receive different outcomes from the same fund, submitted a week apart, because something changed in between.
Due diligence influence
The valuation, QS report, or legal review can reshape the credit committee view even after indicative approval. DD is not a formality.
Why it feels inconsistent
Brokers often describe private credit as unpredictable. Deals that should work get declined. Deals that seem marginal get approved. The inconsistency is not random — it reflects a decision-making system driven by capital, people, and timing, not just policy.
How Get Solutions navigates this reality
We maintain active relationships with fund credit teams, not just BDMs. We understand real-time capital positions, committee preferences, and pipeline dynamics. This allows us to submit deals to funds where the timing, allocation, and appetite align — not just the policy.
Key takeaway
Private credit is governed by capital, people, and timing. Understanding this reality is the first step to consistently settling deals instead of collecting term sheets.
Apply this to a real deal
Why: Understanding what really drives lender decisions helps you select the right fund.
Do: Answer each question based on your current deal scenario.
Output: A signal indicating whether standard fund selection or active credit management is needed.
Lender Reality Check
Step 3 of 8 — Understand what really drives lender decisions.
Does this deal rely on discretion?
Does timing matter more than pricing?
Could capital constraints change the outcome?
Would DD outcomes materially change structure (val/QS/legal)?