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I have encountered several similar terms on this notion, including:

  • private sector financing (very clear, but a bit wordy)
  • market financing (somewhat clear, usage seems infrequent)
  • alternative financing (not quite as clear, but seems fairly standard in the literature)

Question

Are these terms interchangeable? And is there not a more succinct/elegant way to express the idea?

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“Private sector” financing or “non-government” financing will certainly be most clear. “Market” financing is succinct but it can be confused with “capital market” financing, that is, borrowing by issuing tradable debt instruments. “Alternative” financing is generally used to refer to non-bank, non-capital-market financing, such as borrowing from private equity or hedge funds.

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