Larger corporate loans are typically syndicated which means the funds are provided by a number of lenders called a consortium. This is because a single lender may be unwilling to take on the risk of the entire loan themselves. Lenders are typically big banks, which accounts for 20% of the market or mutual funds and insurance companies who make up the other 80%. The arranger, also referred to as the lead lender or the syndicate agent, will facilitate the loan, allocate cash flows, and also fund a significant proportion of the loan themselves. Where the arranger underwrites the deal, it will guarantee the entire loan which can lead to higher service fees for that leader arranger. Having guaranteed to the borrower a fixed amount of money, they will then need to find lenders to fill the rest of the syndicate. The leader arranger bears the risk that it may not be able to syndicate the desired proportion of the loan at which point it may opt to sell the unsubscribed portion at a discount to other potential investors. Syndicate members are often able to transfer their portion of the loan to a third party without the borrower's consent. A club deal is a specific form of a syndicated loan which only applies to smaller deals under $150 million typically whether syndicate shares the fees and the amounts borrowed equally amongst themselves. These deals can be completed within a month faster than other syndicated loans and are more typically used for general working capital purposes rather than for M&A transactions. A best efforts syndication deal is not underwritten, and if it is under subscribed, then the borrower is forced to accept a lower amount of a loan. Another kind of a term loan is a bridge loan, which might be used to cover a short-term financing gap between, say, a longer term bond being repaid and a new bond being issued or a delay in the receipt of funds from an asset disposal. They're typically quick to arrange, but attract higher fees. During the term of the loan, the interest rate will typically increase periodically encouraging the borrower to repay as soon as possible, and if not paid off within the agreed time period, will convert into a longer term, say, a 5 or 10 year term loan with punitive interest. Unitranche lending is similar to syndication in that it is a single instrument covered by one lending agreement, but where the different lenders within the syndicate have different claims on the borrower's assets in the event of liquidation. In this example, term loan A is the senior lender and term loan B and term loan C are subordinated to term loan A sequentially. This allows the borrower to access funds from different lenders at differing interest rates. within one agreement. A unitranche loan will use an agreement among lenders to document who will be paid out first in the event of default and who will be paid out last. The lenders all rank equally to each other technically referred to as Pari-passu and are paid interest at the same time until a waterfall event such as default occurs. This will then trigger the payments out to the lenders on the pre-agreed sequential basis typically subject to a cap on the amount paid to each level within the structure.