In today’s unpredictable economy, businesses across industries are facing a stark reality: capital from traditional sources like banks is harder to come by than ever. Bank liquidity has been tightening over the past 18 months, and even well-established companies are finding themselves turned away or underfunded. For business owners navigating inflation, rising costs, and shifting consumer behavior, this creates a dangerous funding gap.

Enter private credit — a flexible, fast, and increasingly critical solution that’s no longer just a niche option, but arguably the only path to staying properly capitalized in 2025.

The Drying Up Of Bank Lending

According to the Federal Reserve’s Senior Loan Officer Opinion Survey, banks have steadily tightened lending standards for commercial and industrial loans. Many banks are reducing risk tolerance, especially regional players still under pressure from shrinking net interest margins and balance sheet challenges.

Meanwhile, the Wall Street Journal re­ports that even as Wall Street shows strength, U.S. banks are stuck in a lending rut, with slow loan growth stemming from the aftershocks of past crises and new regulatory caution. Small and mid-sized businesses — once able to rely on local or regional banks — are now seeing funding pipelines tighten dramatically.

In short: even if you’ve had a great relationship with your bank, you can no longer assume capital will be there when you need it.

Why Private Credit Fills The Gap

Private credit lenders like Tzortzis Capital provide solutions that traditional banks can’t or won’t:

Speed – Private credit decisions are often made in days, not weeks or months.

Flexibility – Structures can be tailored around your business’s unique needs, whether you’re facing seasonal cash gaps, expansion opportunities, or M&A.

Access – We focus on asset-backed lending, cash flow lending, and non-bank structures, making funding accessible even if your business doesn’t fit inside strict banking risk models.

Private credit has emerged as a significant player in lending. As the Wall Street Journal and Deloitte highlight, private credit is reshaping financing by offering more flexible, creative structures that meet the needs of modern businesses.

Additionally, PitchBook’s Q1 2025 Global Private Equity First Look shows that despite a mixed macroeconomic environment, private equity and private credit deal activity remains resilient, suggesting ongoing investor appetite and a robust pipeline of funding opportunities.

Why Now Is The Time

To Secure A Line Of Credit

Here’s a crucial piece of advice: even if you don’t need extra capital today, secure a line of credit (LOC) while you still can.

An LOC gives you the ability to draw funds only when needed — and you typically don’t pay interest until you make a draw. This makes it one of the most cost-effective ways to prepare for uncertainty.

Why is this important now? Because in the event of a market slowdown, an unexpected client loss, or supply chain disruption, businesses that already have credit lines in place can weather the storm — while those trying to secure funding under pressure often find the doors closed.

The National Small Business Association (NSBA) emphasizes that access to capital is consistently one of the top challenges facing small businesses, and those with funding in place show significantly greater confidence in maintaining operations during downturns.

How Tzortzis Capital Can Help

At Tzortzis Capital, we specialize in helping businesses:

  • Establish revolving lines of credit
  • Secure working capital loans for inventory, expansion, or payroll
  • Access bridge funding for M&A, real estate, or restructuring
  • Arrange flexible, non-SBA acquisition loans

We move quickly, offer creative structures, and are backed by a family office that understands the real-world needs of business owners — not just a risk model on a spreadsheet.

In this environment, funding is no longer optional — it’s survival. We encourage every business owner reading this to ask: do you have the liquidity to withstand a downturn? Do you have a trusted funding partner when the banks say no?

Final Thoughts

As banks pull back, private credit has stepped up as one of the most reliable, scalable funding sources available today. Whether you’re actively seeking capital or simply want to secure a LOC as a safety net, now is the time to act — before market uncertainty tightens conditions even further.

To explore your options, reach out to Tzortzis Capital. We’re here to help you navigate today’s challenges and position your business for strength.