Loans provided directly from a limited number of investors to a corporation, with maturities typically in excess of ﬁve years, are called:

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Private placements are typically long-term loans provided directly from a limited number of investors to a corporation, with maturities typically in excess of five years. The lender and the borrower negotiate the terms of the loan agreement, including the interest rate, payment terms, and any collateral requirements. Private placements are an alternative to public offerings of debt securities, which require registration with the Securities and Exchange Commission (SEC) and the sale of bonds or notes to a large number of investors.

Loans Provided Directly from a Limited Number of Investors to a Corporation