loan commitment

Definition

A formal offer by a lender making explicit the terms under which it agrees to lend money to a borrower over a certain period of time. also called standby loan commitment or commitment letter or firm commitment lending.

Use loan commitment in a sentence

“ You need to make sure that you are doing everything you agreed on when you decided to make a loan commitment. ”

​ Was this Helpful? YES  NO 7 people found this helpful.

“ Once the loan commitment was finalized, the new business owner signed the lease for the office space that he would be working from. ”

​ Was this Helpful? YES  NO 9 people found this helpful.

“ The loan commitment from Bank of America ensured that my business would have funds available for use when the perfect location was found for our new restaurant. ”

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Related Terms

Mentioned in these terms

Most Viewed

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
credit commitment fee