commitment letter

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. also called loan commitment.

Use commitment letter in a sentence

The commitment letter was a guarantee and a guarantee was good to have because it made us feel safe and secure.

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You should try and make a good commitment letter that will let the other party know you are serious with your offer.

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The Smiths were delighted to finally receive the commitment letter from their bank so that they could begin purchasing equipment for the restaurant they were opening.

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