Sole banking arrangement, Multiple banking arrangement,, Consortium Landing

Sole banking arrangement, multiple banking arrangement, and consortium lending are different types of banking arrangements used by businesses to manage their banking relationships and borrowing facilities.

Sole Banking Arrangement: A sole banking arrangement is a banking relationship where a business has only one bank as its primary banker. The bank provides a wide range of banking services, including deposit accounts, loans, and other financial services. A sole banking arrangement can simplify banking relationships and can help businesses negotiate better rates and terms on their borrowing facilities.

Multiple Banking Arrangement: In a multiple banking arrangement, a business has banking relationships with more than one bank, and each bank provides different types of financial services. This type of arrangement can help businesses diversify their banking relationships and reduce their reliance on one bank. Multiple banking arrangements can be more complex to manage, but they can also offer more options and flexibility in terms of financing.

In summary, sole banking arrangement, multiple banking arrangement, and consortium lending are different approaches to credit facilities provided by banks to borrowers. The choice of credit facility depends on the borrower’s credit requirements, creditworthiness, and relationship with the banks.