credit funds

Credit funds are pools of money collected from investors, used by lenders or financial institutions to provide loans or credit to borrowers. These funds allow lenders to offer larger or more numerous loans than they could alone, spreading risk among many investors. Investors earn returns through interest paid on these loans. Credit funds are common in structures like mutual funds, real estate investments, or specialized vehicles that focus on lending activities. They are an essential part of the financial system, financing everything from personal loans to business expansion, while offering investors a regulated way to participate in lending markets.