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Good News for Syndicated Revolving Credit Lines

Here’s an excerpt from an article I read on CFO Magazine’s website, CFO.com, “Revolvers Return, with Some Twists: Good news for credit-seekers as banks relax, a little” by Vincent Ryan. Click on the title to read the article in its entirety.

“In 2010, lenders doubled their issuance of syndicated, revolving lines of credit, a staple of corporate finance, according to data from Thomson Reuters Loan Pricing Corp., with borrowings accelerating the second half of the year, to $381 billion.

During the financial crisis, banks cut their exposure to revolvers, downsizing instruments or flatly refusing to renew them. Now, individual banks are slowly raising the amount of untapped commercial-credit commitments they’re willing to keep on their books, according to federal call reports.”

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Medium-sized companies can participate in syndicated, revolving credit lines. Talk to your banker. If you bank with a community or regional bank that has a strong business customer focus, they may occasionally syndicate loans that are too large to for their portfolio. The bank may take the lead. So, if you need $15 million and the typical loan limit for your community bank is $8 million (meaning that most of the loans they approve are $5 million or less), in order to keep your business they may wish to syndicate the loan among 3-4 other banks of their size. You never know until you ask.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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