Tag: Term Sheets

Why Loan Commitment and Proposal Letters Matter

Bank Loan Proposals, Term Sheets And Commitment Letters

Successful commercial lenders understand how to use commitment letters and proposal letters to their advantage.  A proposal letter (or letter of intent) is an expression of interest from the lender before credit approval is obtained.  A commitment letter evidences the lender’s commitment to lend and is only furnished after credit approval.  Typically a commitment letter will contain some form of the following language: lender commits to provide the loan on, and subject to, the terms and conditions set forth herein.

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