Widget Corp., a manufacturer and supplier of train coaches worldwide, needs access to more credit than a single bank can handle. Widget Corp. approaches a group of banks that can provide it with the required credit. It is evident that Widget Corp. obtains credit from _____.

Question

Quizplus · Accepted Answer

When a single borrower requires a loan that is too large for one lender to provide, or when the loan is outside the scope of a lender's risk exposure levels, the borrower might obtain credit from a syndicate, which is a group of lenders.