Big companies require large loans for investments. Usually, the loan amount can not be fulfilled by a single bank. Therefore, lenders form loan syndications to offer companies access to capital.
Even though the benefits of a syndicated loan are substantial, the process requires certain steps and implies too much bureaucracy. Our job consists of analyzing the best deal on the market and offering fast and smart solutions to our customers. Curious about the process of loan syndication? Let's go through the main steps!
Loan Syndication Stages
The process may vary from company to company. However, these are the three main stages of a loan syndication:
1. Pre-mandate Phase
At this point, the borrower has to choose the lead lender. Afterward, the lead bank will analyze the project and the capital requirements. This will help to create the loan offer.
2. Intermediary Phase
This stage implies the loan placement and payment. The lead lender will prepare the necessary documents and create the offer for other lenders. If the loan syndication is possible, the borrower will receive the necessary capital for the investments.
3. Post-closure Phase
This last stage implies the loan reimbursem*nt. The borrower should consider that the loan is a priority and must be paid off prior to other interest parts.
Syndicated loans are good financing instruments. Due to the process's difficulty, our clientele chooses us as the agent taking care of the loan process. Contact us for details!
