Recent data reveals a troubling trend in the private credit space: roughly one in seven borrowers can't generate sufficient operating profit to service their interest payments. That 15% figure should raise eyebrows, especially as it signals growing stress in a market segment that's ballooned over the past few years. When borrowers lack the cash flow to cover debt costs, defaults typically aren't far behind—a pattern we've seen play out across traditional finance and decentralized lending platforms alike.