how does a loan syndication affect the borrower 
loan syndication doesn t affect borrowers any differently than other types of loans the borrower generally applies for a loan at one bank if approved this institution approaches others to form a syndicate which allows them each to spread the risk after the loan is advanced the borrower signs a single contract which names every member of the syndicate and their contribution to the loan regular payments are made to the lead bank which divides it up among syndicate members 