Products available
to
the
corporate
sector
are essentially
the
same as for the
market in
general:
term
loans term loans
with
bill conversion bill facilities overdrafts -
in other
words
intermediated
funding.
t
is
important
to read
other
books
that go into much
more detail
about
the specific characteristics of
loan
products because a loan officer
has
a particular
duty
of
care to offer the
best
available
mix
of
loan
products to
their
clients. This
duty
of
care is
both moral
and
legal. Larger corp orates
have
access to a
wider
variety
of
products
and
providers
than
normal. Some are large
enough
to access
the market
themselves
and
obtain funding from the capital
market
directly;
in
some
cases their strength may be
equal
to
or
greater
than that of
a financial institution. Distinctive features
of
a
modern
large corporate are its
high
degree
of
bargaining power access to alternative financial resources
and
legal
and
financial advice
of
a
high
quality. Large corporations often diversify
their banking
sources which may have
some
benefits for the borrower
but
can
lead to problems
if
renegotiation
or
restructuring is reqUired. All
of
the lending
institutions
involved may have
to
agree to the
amendments
before
they
can
take affect.
5 Part
:
Corporate
and business
lending