What is an inter lender agreement?

An inter-lender agreement is a contractual arrangement among multiple lenders that outlines the terms and conditions governing their collective financing of a borrower. It typically details the rights and responsibilities of each lender, the distribution of payments, and procedures for decision-making in relation to the loan. Such agreements are commonly used in syndicated loans, where several financial institutions collaborate to provide a large loan to a single borrower. This framework helps manage risks and ensures coordinated action among lenders.