SECURITY TRUST SERVICES
Club Lending
In this arrangement, the participating lenders, often referred to as the “club,” extend credit to a single borrower. Unlike syndicated loans involving a larger number of lenders and a lead arranger, club lending typically involves a smaller, select group of investors.
This form of lending typically involves two or more investors).
Who needs this?
Do you have assets that can be utilized to unlock working capital?
Do you need a partner to facilitate the process?
This service might be for you!
BENEFITS
- Lenders’ monopoly over the assets are minimized
- Confidentiality is assured.
- Discharge/release of the Lenders on the full repayment or replacement.
- Allows for small and big Lenders to share in the charge on pari passu basis.