Best Efforts Syndication (Banking & Finance Glossary)

The Arranger(s) uses its “commercially reasonable efforts” to syndicate the loan to Lenders, but does not commit to fund the entire loan amount. The Arrangers instead agree to fund a portion of the loan amount requested by the Borrower. This is a riskier type of deal for the Borrower since it may not obtain the financing it is seeking and tends to be used in bad markets or when the Borrower has poor credit.