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Training Guide

Types and Features of Loans


Training Guide

Types and Features of Loans

Commercial Lending
Remote or in person

What’s Covered

  • Loan size classifications
  • Sublimits, including letters of credit and swingline loans
  • Differences between bilateral, syndicated, and “club “deals
  • Non-recourse v. recourse loans
  • Term Loan A and Term Loan B Loans
  • Cash-flow loans
  • Mezzanine loans
  • Contractual and lien subordination
  • Unitranche loans

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

  • still frame from Loan Classifications


    Types and Features of Commercial Loans

    An introduction to the main types and features of loans, such as term loans and revolvers, bilateral and syndicated loans, secured and unsecured loans, and loan priority. Examples of these types of loans, such as asset-based loans, unitranche loans, and mezzanine debt are also covered.

During the Session

Part 1: Knowledge Check
Ask attendees these questions to ensure they understand the topic:
  • Which loan markets are the most common for bilateral loans? What about syndicated loans and club loans? 
  • How do Term Loan A loans differ from Term Loan B loans? 
  • What’s the main difference between term loans and revolving loans? What kinds of projects are each type of loan used for? 
  • What’s the difference between a “non-recourse” and a “recourse” loan?
  • What does it mean in practice for one lender to be subordinate to another? How might it happen? 
Part 2: Group Exercise
Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.
Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.
Part 3: War Stories and Firm Specifics
Share your own experiences and guidance, including:
  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.

About Hotshot

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