Private credit firms like to present what they call a menu of options.

In today’s world, as borrowers face higher debt costs and shrinking margins, lenders are stepping up with a range of solutions, whether it is preferred equity injections or aiding in restructuring capital stacks. Whatever the need, sponsors can take their PIK (literally). Banks can hardly keep up.

Now, lenders are adding another item to the menu, which might offend traditionalists: delayed draw term loans to help sponsor-backed companies cover the cost of burdensome interest payments on their existing loans.

In just one recent example, direct lenders provided a roughly $475m add-on loan to middle-market insurance agency Higginbotham, 9fin reported earlier this month.