advantages and disadvantages of loan syndication

Syndicated facilities bring to the businesses the best prices in aggregate and spare the companies their time and effort that could have gone waste in individual dealing with each bank. Second, syndication allows banks that are constrained by their capital-asset ratios to participate in loans to larger borrowers. This reduces the heavy paperwork and efforts for both the borrowers and the lenders. Furthermore, after filling the lenders' criteria, the borrower needs to set terms and conditions to work with the lenders and satisfy them. Where a group of lenders usually collaborates through an intermediary being a lead financial institution, or syndicate agent, which organizes and administers the transaction, including repayments, fees, etc., to provide financial requirements to a single larger borrower (usually out of the capacity of a single lender) where the division of risk and returns takes place between each other is known as loan syndication. Those who participate in loan syndication may vary from one deal to another, but the typical participants include the following: The arranging bank is also known as the lead manager and is mandated by the borrower to organize the funding based on specific agreed terms of the loan. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); // Con Edison General Utility Worker Salary, Articles A