Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 2 terms
in Commercial starting with L
L
Letter of Intent (LOI)
CommercialA non-binding agreement outlining the basic terms of a commercial real estate purchase or lease before formal contracts are drafted. Sets the framework for negotiation.
Loan Covenant
CommercialA condition placed on a commercial loan requiring the borrower to maintain certain financial ratios or operational standards. Violating a covenant can trigger a default even without missed payments.