What is disadvantage of consortium financing?

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2026-08-13 21:31

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One disadvantage of consortium financing is the potential for complex decision-making, as multiple lenders are involved, leading to slower approval processes and increased bureaucracy. Additionally, differing priorities and interests among consortium members can create conflicts, complicating negotiations and project management. This complexity may also result in higher transaction costs and less flexibility in responding to changes or challenges during the financing period.

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