The Case for Private Credit – Why More Founders Are Skipping the Bank
In the traditional business playbook, if you need funding, you go to your bank manager. But for thousands of UK founders today, that playbook is outdated, inaccessible, and painfully slow.
Private credit offers an alternative—a faster, more flexible, founder-friendly way to access capital without selling equity or jumping through hoops.
It’s growing. It’s working. And if you’re building a business that needs breathing room to grow, it might be exactly what you need.
This blog breaks down what private credit is, how it works, and why it’s become a core part of the Founder Capital model.
What Is Private Credit?
Private credit is a form of lending that comes directly from investors or funds, not from traditional banks. These are typically asset-backed loans with fixed returns—designed to be simpler, faster, and more personal.
You might hear it called:
Private debt
Direct lending
Non-bank lending
But the principle is the same: businesses borrow money, repay it over time, and keep 100% of their equity.
How Private Credit Works
At Founder Capital, we run the Private Credit Pool—a fixed-income strategy that provides secured loans to growing UK businesses.
Here’s how it works:
We raise capital from investors who want predictable returns
We lend it to businesses with strong fundamentals but short-term capital needs
Businesses use the funds to invest, expand, or refinance without giving away equity
Loans are backed by assets, revenue, or guarantees
Investors receive 6–10% annual returns, typically over 2–5 years
It’s not just a funding product—it’s a way to keep momentum without compromise.
Why Founders Choose Private Credit
Private credit works especially well for founders who:
Have a profitable or growing business, but don’t want to raise equity
Need capital faster than banks or grant programmes allow
Want flexibility without dilution
It’s perfect for:
Bridging cashflow gaps after rapid growth
Hiring key staff or investing in infrastructure
Buying out a partner or consolidating ownership
Refunding high-interest short-term debt
Our borrowers are usually overlooked by banks—but thriving. We fund real people building real businesses across sectors like tech, services, finance, and health.
Real Use Cases
A regional law firm borrowed £250k to upgrade its tech stack and expand into a new city
A B2B SaaS company secured £150k to fund a sales team before its next raise
A compliance consultancy used a £100k loan to refinance a merchant cash advance at half the interest rate
All without giving up a single share.
For Investors: Why Private Credit Works
Private credit doesn’t just serve founders—it’s also a compelling strategy for investors looking for:
Steady, fixed-income returns
Short- to medium-term duration (2–5 years)
Asset-backed security
Real economy exposure
In a market full of volatility, private credit offers predictable yield with clear downside protection. Our investors receive quarterly reports and benefit from our deep due diligence, underwriting standards, and alignment with the AD Group’s long-term value platform.
What Makes Our Found Credit Different
We focus on services-led SMEs—the businesses that banks overlook
We combine financial analysis with operator insight
We move fast: applications to approval in under 10 days
We don’t punish founders for growth—we fund it
And because the pool is backed by the infrastructure and risk controls of the AD Group, we’ve built something scalable, robust, and impact-positive.
Final Thought
Private credit is no longer niche. It’s a modern way to unlock growth, preserve ownership, and invest in the backbone of the UK economy.
Whether you’re a founder who needs funding—or an investor looking for fixed returns—our Private Credit Pool is built for you.
Founder-first capital. No middlemen. No red tape. Just results.