TRANSACTIONS GLOSSARY
Term Sheet
Term Sheet
A summary of proposed financing terms that is generally subject to conditions and final documents.
What does Term Sheet mean?
A summary of proposed financing terms that is generally subject to conditions and final documents. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Term Sheet in context
A lender issues a term sheet outlining amount, rate, collateral and closing requirements.
Why it matters in financing
Term Sheet can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related transactions terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.