Additional Read: Corporate Loan restructuring. When a borrower requires a loan sum too risky for one lender to bear, loan syndication can provide a way out. Borrower Requirement of capital for expansion project or acquisition transaction. Here is the method of loan syndication: . Steps to follow to obtain a working capital loan for a new business. Every lender has a responsibility towards their share of the loan. A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower. The liabilities of all the lenders are independent of each other in legal terms. Several investment banks serve as lead arrangers to arrange such types of loans. Further, as they are a single party, they need to convince a group of lenders to work together to meet their needs. The investment bankers work till the sanction and disbursement of these credit facilities. You are free to use this image on your website, templates, etc., Please provide us with an attribution link. Syndicated loan facilitates competition for business by insinuating other banks to supply market information to a business in hopes of gaining recognition. Loan syndication, where a group of banks makes a loan jointly to a single borrower, offers several benefits. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); //
