Determining the optimal lender mix — number of banks, limit allocation per lender, lead bank vs. member banks, and rationale for the structure.
Negotiating with the lead bank on consortium agreement terms, intercreditor obligations, and documentation standards.
Review and negotiation of the Joint Lending Agreement (JLA), ensuring client-friendly terms across all participating lenders.
Annual limit renewal management across all consortium banks — coordinating information submission, responding to queries, and managing approvals.
Adding new lenders to the consortium when limits need to be expanded. Managing the onboarding documentation and inter-bank alignment.
Clean exit of underperforming or difficult lenders from the consortium — NOC management, security release, and transition to replacement lender.
A JLA is the inter-bank agreement that governs how multiple lenders share security, make decisions, and coordinate in a consortium. It defines voting rights, enforcement procedures, and pari passu sharing. Negotiating a favourable JLA — one that protects the borrower's operational flexibility — is critical and often overlooked.
There's no universal answer, but beyond 5–6 banks, the administrative overhead and coordination complexity typically outweigh the diversification benefits. We see many mid-market companies with 8–12 banking relationships where consolidation to 3–4 would save significant management time and reduce overall borrowing cost.
Yes — annual limit renewal management is a common mandate. We prepare consolidated information packages, coordinate with all banks simultaneously, manage credit officer queries, and ensure renewals happen without disruption to operations.
No obligation. Let's start with a review of your current lender structure.