This overview is a guide to the Banking & Finance content within the ‘Parties involved in loan transactions’ subtopic, with links to appropriate materials.
The types of parties involved in a loan transaction will vary depending on the lending arrangement and the type of borrower(s) involved in the deal.
Bilateral loans are normally used for loans of relatively small amounts and where less complex financing arrangements are required. They involve a single lender and one or more borrowers. Syndicated loans are used for larger and more complex financing arrangements. They involve two or more lenders who join together to provide funding to a borrower or group of borrowers. For more information, see Practice Note: Bilateral, syndicated and club arrangements.
The nature of the borrowing entity can also vary and this will affect the finance documentation.
In a syndicated loan, two or more lenders provide funds to a borrower (or group of borrowers) under the terms of a facility agreement. See Practice Note: Bilateral, syndicated and club arrangements—Syndicated loans. The Lenders are usually commercial banks but could be other
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