participation financing

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Explanation of "Participation Financing"

Definition:
Participation financing is a type of loan where multiple banks or financial institutions come together to share the responsibility of providing a large loan. This is usually done because the total amount of money needed is too big for any one bank to provide alone.

Usage Instructions:

• Part of Speech: Noun
• How to Use: You can use "participation financing" when discussing loans, banking, or financial agreements. It’s often used in business contexts.

Example Sentence:

• "The company secured participation financing from several banks to fund its new project, ensuring that no single bank took on too much risk."

Advanced Usage:

In more advanced contexts, participation financing may be discussed in relation to: - Syndicated Loans: A type of loan where a group of lenders work together to provide funds. - Risk Management: By sharing the loan, banks reduce their individual risk.

Word Variants:

• Participate (verb): To take part in something.
• Participation (noun): The act of taking part in something.

Different Meanings:

"Participation financing" specifically refers to a shared loan arrangement. However, "participation" alone can mean taking part in any activity or event, such as a discussion or a game.

Synonyms:

• Syndicated Loan: A loan provided by a group of lenders.
• Shared Loan: A loan shared among multiple parties.

Idioms and Phrasal Verbs:

While "participation financing" does not have specific idioms or phrasal verbs directly associated with it, you might use general financial phrases like: - "Go in together": To share the cost or responsibility with others.

Academic

Noun

1. a loan that is shared by a group of banks that join to make a loan too big for any one of them alone

Synonyms

• participation loan
• loan participation