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| Direct lending is when a non-bank lender (usually an insurance company or an investment firm) lends directly to ultimate borrowing companies rather than doing so via a bank or a hedge fund.
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| Funds dedicated to direct lending have increased as this type of lending has often been looked down upon by banks.
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| For example, Lawrence Delevingne writing for Reuters<ref>[https://www.reuters.com/article/us-usa-funds-lending/direct-lending-funds-fading-all-weather-appeal-idUSKBN1A90CJ] ''www.reuters.com''</ref> (24 July 2017) says "direct lenders make high-interest rate loans, usually to fledgling or struggling businesses passed over by banks".
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| However, as banks struggled to lend to smaller companies following new capital requirements following the global financial crisis starting in 2007/8 and the eurozone crisis starting in 2009, direct lending has grown and some banks themselves started conducting some of their corporate lending via direct-lending funds.
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| == See also==
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| * [[Bank Facility]]
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| * [[Facility]]
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| ==Other links==
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| [https://www.ft.com/content/ca61614a-aecc-11e7-beba-5521c713abf4 US direct lending fund raises $4.5bn (FT October 12 2017]
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| [https://www.ft.com/content/7432311a-add6-11e7-aab9-abaa44b1e130 Gillian Tett on growth of direct lending and its implications (FT October 12 2017)]
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| ==References== | |
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| <references/>
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| [[Category:The_business_context]]
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| [[Category:Long_term_funding]]
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Latest revision as of 09:29, 27 July 2023
Summary
Importing files from local file repository