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. ”

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

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“ 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. ”

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takedown proceeds of loan escrow