commitment letter

commitment letter
A legally binding letter in which a lender documents the terms, prerequisites and conditions under which it agrees to provide financing to an applicant. Commitment letters may be used in almost any lending transaction but are most common in commercial real estate transactions. American Banker Glossary

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commitment letter UK US noun [C]
BANKING, FINANCE a document from a bank, etc. describing an offer to lend money and the conditions of the loan: »

We have a commitment letter from the bank to provide financing, including renewal of a revolving line of credit and new short-term loans.


Financial and business terms. 2012.

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