participation loan

participation loan definition - business

participation loan

  1. A loan in which one or more lenders share, or participate, with the originating bank in advancing funds to a borrower. A participation loan is useful when the amount of the loan is too large for any single lender.
  2. A loan in which the lender receives consideration in addition to interest. For example, the lender may gain an ownership position in the asset being financed.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.