The syndication process involves complex steps, which become part of the prospectus called “Bank Book”. Typically a “bank-book” will include an executive summary, investment considerations, a list of terms and conditions, an industry overview, and a financial model.

When a deal is designed, usually an issuer solicits bids from arrangers (banks). The banks will outline their syndication strategy and qualifications, as well as their view on the way the loan will price in market.

Once the mandate is awarded, the syndication process starts. The arranger will prepare an information memo describing the terms of the transactions. Because loans are not securities, this will be a confidential offering made only to qualified banks and accredited investors. The syndicate desk will likely try to get some feedback from potential investors on what their appetite for the deal will be. Once this is done, the agent will set the target price or a price range that will be offered to investors.

Once the loan is closed, the final terms are then documented in detailed credit and security agreements. Subsequently, liens are perfected and collateral is attached. Loans, by their nature, are flexible documents that can be revised and amended from time to time.

This is a line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs.

This is often referred to as “Revolver.” “Revolving lines of credit” can be taken out by both corporations and individuals. The bank that is in agreement with the customer guarantees a maximum amount that can be lent to the customer. Along with the commitment fee there is also interest expenses for corporate borrowers and carry forward charges for consumer accounts.

A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory. These kinds of loans are also known as "interim financing", "gap financing or a "swing loan".

As the term implies, these loans "bridge the gap" between times when financing is needed. They are used by both corporations and individuals and can be customized for many different situations. For example, let's say that a company is doing a round of equity financing that is expecting to close in six months. A bridge loan could be used to secure working capital until the round of funding goes through. In the case of an individual, bridge loans are common in the real estate market. As there can often be a time lag between the sale of one property and the purchase of another, a bridge loan allows a homeowner more flexibility.

A Tem loan is defined as a loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years. For example many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often a small business will use the cash from a term loan to purchase fixed assets such as equipment used in its production process.

A term loan is simply an installment loan, such as a loan one would use to buy a car. The borrower may draw on the loan during a short commitment period and repays it based on either a scheduled series of repayments or a one-time lump-sum payment at maturity (bullet payment).