What Is Senior Loan Agreement

Therefore, a junior lender must negotiate treatments such as limiting the number of blockages on customs clearance, protection to speed up debt and perfect remedies, as well as a clear directive on when a blockade should begin. Investors can also be reassured by the fact that the average default rate of senior bank credit funds has always been relatively modest at 3%. In many intercreditor agreements, it is often common for the primary lender to dictate the terms of the lien. In cases where a junior lender does not firmly negotiate the item, the primary lender may disadvantage a junior lender. In some cases, a junior lender may face artificial delays from the lead lender if they want to get approval to enter into an agreement or claim. .