# Commitment letter

The bank's written offer to lend, with the conditions it will lend on.

It is not the same document as the [SBA authorization](https://searchspheresource.com/glossary/sba-authorization), and the difference matters whenever a closing date is at stake. The commitment letter is the bank's own offer, and it is where the conditions live: the injection it expects, the collateral it wants, the life insurance assignment, the landlord agreements it needs signed, and the date the whole thing expires. Read the conditions before the rate. A [term sheet](https://searchspheresource.com/glossary/term-sheet) with a rate you like and a condition you cannot satisfy is not financing, and finding that out late costs a closing.

In numbers: A commitment that expires in 45 days with a 10% injection condition on a $4M deal means $400,000 has to be seasoned and documented before it lapses.

Source: https://searchspheresource.com/glossary/commitment-letter
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt