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Definition
A syndicated loan is provided by a group of lenders (a syndicate), arranged by a lead bank, who share both the funding and the risk of a large facility under one agreement.
In plain terms
When a loan is too big for one lender, several club together. You still deal mainly with the lead, but the money and risk are spread.
Why it matters for your company
Syndication applies to larger corporate borrowing; most SMEs deal with a single lender. Where used, an intercreditor agreement governs the lenders’ relationships. See tranche.
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