commitment fee

commitment fee definition - business

commitment fee

Payment by a potential borrower to a lender for a legal promise to make credit available on a specified future date or for a line of credit. Also called standby fee.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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