When a company needs financing to buy a competitor, build a new data center, purchase an aircraft or need working capital, they may arrange a syndicated loan, also known as bilateral loans. In the case of syndicated loans, a group of financial institutions – investment banks, hedge funds and institutional investors – come together to jointly fund the loan.
Having an experienced partner to serve as a loan agent for your loan transactions can be a significant benefit. It allows you to focus on your business strategy and not be distracted by operational and administrative responsibilities.
In the past, it was common for lenders to rely on their own in-house support and expertise. However, many have moved away from this model and are looking for third-party service providers that can offer a broader set of capabilities.
With this in mind, there are several things to look for in a loan agency service provider:
The most important thing to consider is that the provider you choose will be responsive and nimble. They must be able to adapt to the changing requirements of their clients, and deliver results that are aligned with your objectives and strategies.
They must also be able to meet the challenges of today’s global financial environment, where a range of political and regulatory events can have a direct impact on the ability to fund transactions.
Choosing a global service provider can help you maintain consistency and efficiency throughout your loan transaction by providing in-depth knowledge of local regulations and compliance requirements. Additionally, if your loan requires servicing in multiple jurisdictions, a global service provider can ensure that you’ll only be responsible for a single point of contact for all the different aspects of your service.
As a result, it’s important to find a provider with a stable financial history and an impressive track record of success. They can provide a level of confidence in your transactions that no other lender can match.
What’s more, they’ll be familiar with the unique challenges and opportunities that arise in your particular market. They’ll be prepared to handle the challenges of a volatile market or a default, and provide guidance and resources that you can use to remain focused on your business goals.
In addition, the right loan agency partner can assist with trade settlements and help you obtain information if necessary. This is particularly helpful if the terms of your credit agreement change or if you need to exit your loan.
The right loan agency partner can also provide a consistent and reliable source of communication and information about your transactions, so that you can be confident the details of your loans will be administered properly, no matter what might happen in the future. foreign loan in singapore