LOAN SYNDICATION AS AN ALTERNATIVE BUSINESS FINANCING STRATEGY IN NIGERIA. (A CASE STUDY OF UNION BANK OF NIGERIA PLC. NEW MARKET ROAD ONITSHA). A RESEARCH PROJECT MATERIAL ON ACCOUNTING
Lack of fund has been one of the major problems militating against the progress and growth of our business organization. This is caused by a lot of factors such as low savings (vicious circle of poverty), ignorance of the public to invest, mismanagement etc. there are many ways of solving the problems of finance and providing adequate finance to our business organizations such as equity stock, savings, ploughing back profits, but for the purpose of this research, we have to pay attention to loan syndication.This research will focus on the appraisal of the methods and ways through which Union Bank of Nigeria Plc source for fund in form of loan from a group of financial institutions such as commercial banks, merchant banks, insurance companies, development banks and financial institution like governments thrift societies friends. It will also focus on the different classes of loan notably, long-term loan, medium term loan, and short term loan. The classes of loan provided by the different types of financial institutions enumerated above will also be considered by Union Bank of Nigeria before using loan as a source of finance instead of other sources. Similarity, it is also pertinent to treat the factors, which are considered by consortium of financial institutions before giving out loans to business organizations. The securities and interest rates treatment acceptable to the consortium will also be look into. Also, the reason why some financial institutions do not go into loan syndication will also be inquired into. Before ending this research, it is important to study how the interest of the constitution is protected in the Union Bank of Nigeria as well as how the interest of each member of the consortium is protected within the group.