Cerebro Capital, a commercial loan platform, today released its new quarterly survey on non-bank lending for middle-market commercial and industrial (C&I) loans. The results illustrate the perspectives of private credit lenders, also known as alternative lenders, or non-bank lending institutions.
Non-Bank Lenders See Surging Loan Demand As Credit Standards Tighten
Non-bank lenders are changing credit standards in response to economic volatility, with 49% of respondents indicating that credit standards for C&I loans tightened during the third quarter of 2020. At the same time, 76% of non-bank lenders expect loan demand to surge over the coming months as borrowers leave commercial banks in search of relaxed covenants and flexible loan structures.