[{"data":1,"prerenderedAt":471},["ShallowReactive",2],{"document-commitment-letter-D12999":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":38,"customDescModule":178,"customdescription":6,"mdFm":179,"mdProseHtml":470},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: COMMITMENT LETTER FOR [DESCRIBE] Dear [CONTACT NAME], This letter serves as my official commitment to [COMPANY NAME]. I confirm that I will be available to begin my employment immediately as the [EMPLOYEE'S JOB TITLE] as long as your company successfully secures a contract with [CONTRACTED COMPANY NAME] for its [SERVICE PROVIDED]. The terms of this letter will expire if [RECIPIENT'S COMPANY NAME] does not obtain a deal with [CONTRACTED COMPANY NAME] by [DATE].",null,"Commitment Letter","1",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/commitment-letter-D12999.png","https://templates.business-in-a-box.com/imgs/250px/12999.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12999.xml",{"title":15,"description":6},"commitment letter",[17,20],{"label":18,"url":19},"Human Resources","/templates/human-resources/",{"label":21,"url":22},"Motivation & Appreciation","/templates/motivation-appreciation/","Commitment Letter Template","https://templates.business-in-a-box.com/imgs/400px/12999.png","https://templates.business-in-a-box.com/imgs/600px/12999.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,35],{"label":28,"url":29},{"label":33,"url":34},"Finance & Accounting","/templates/finance-accounting/",{"label":36,"url":37},"Business Financing & Loans","/templates/business-financing-and-loans/",[39,43,47,51,55,59,63,67,71,75,79,83,87,103,118,134,152,166],{"label":40,"url":41,"thumb":42,"extension":10},"Commitment Form","/template/commitment-form-D1234","https://templates.business-in-a-box.com/imgs/250px/1234.png",{"label":44,"url":45,"thumb":46,"extension":10},"Policy Letter on Vehicle Expense Reimbursement","/template/policy-letter-on-vehicle-expense-reimbursement-D723","https://templates.business-in-a-box.com/imgs/250px/723.png",{"label":48,"url":49,"thumb":50,"extension":10},"Reminder Letter_Confidentialty Letter or Former Letter","/template/reminder-letter_confidentialty-letter-or-former-letter-D5173","https://templates.business-in-a-box.com/imgs/250px/5173.png",{"label":52,"url":53,"thumb":54,"extension":10},"Acknowledgement Letter","/template/acknowledgement-letter-D13437","https://templates.business-in-a-box.com/imgs/250px/13437.png",{"label":56,"url":57,"thumb":58,"extension":10},"Complaint Letter","/template/complaint-letter-D13000","https://templates.business-in-a-box.com/imgs/250px/13000.png",{"label":60,"url":61,"thumb":62,"extension":10},"Consent Letter","/template/consent-letter-D13633","https://templates.business-in-a-box.com/imgs/250px/13633.png",{"label":64,"url":65,"thumb":66,"extension":10},"Demand Letter","/template/demand-letter-D13262","https://templates.business-in-a-box.com/imgs/250px/13262.png",{"label":68,"url":69,"thumb":70,"extension":10},"Engagement Letter","/template/engagement-letter-D13681","https://templates.business-in-a-box.com/imgs/250px/13681.png",{"label":72,"url":73,"thumb":74,"extension":10},"Introduction Letter","/template/introduction-letter-D1432","https://templates.business-in-a-box.com/imgs/250px/1432.png",{"label":76,"url":77,"thumb":78,"extension":10},"Letter of Reference_Long","/template/letter-of-reference_long-D491","https://templates.business-in-a-box.com/imgs/250px/491.png",{"label":80,"url":81,"thumb":82,"extension":10},"Letter of Reference_Short","/template/letter-of-reference_short-D492","https://templates.business-in-a-box.com/imgs/250px/492.png",{"label":84,"url":85,"thumb":86,"extension":10},"Letter Of Intent","/template/letter-of-intent-D12655","https://templates.business-in-a-box.com/imgs/250px/12655.png",{"description":88,"descriptionCustom":6,"label":89,"pages":90,"size":9,"extension":10,"preview":91,"thumb":92,"svgFrame":93,"seoMetadata":94,"parents":96,"keywords":101,"url":102},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","3","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":95,"description":6},"letter of intent_acquisition of business",[97,100],{"label":98,"url":99},"Legal Agreements","business-legal-agreements",{"label":98,"url":99},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",{"description":104,"descriptionCustom":6,"label":105,"pages":106,"size":107,"extension":10,"preview":108,"thumb":109,"svgFrame":110,"seoMetadata":111,"parents":112,"keywords":116,"url":117},"MANAGEMENT AGREEMENT This Management Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Manager\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Company is in the business of operating a [SPECIFY] (the \"Business\"); WHEREAS the Manager has knowledge and expertise in the area of establishing, developing, operating and managing [SPECIFY BUSINESS TYPE], as well as in the area of the management of enterprises carrying on activities similar to those of the Company; WHEREAS the Company considers that the Manager's expertise will enable the Company to successfully and profitably operate its Business; WHEREAS the Manager has represented to the Company that it shall, during the term of this Management Agreement, be primarily responsible for the performance of the services to be provided hereunder; WHEREAS the Company wishes to engage the Manager to manage the Business on the terms and conditions set out below, and the Manager is prepared to enter into the present Management Agreement with the Company. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. ENGAGEMENT 1.1 The Company hereby engages the Manager to provide expertise in the operation of the Business and such management services as may, from time to time, be requested by the Company. Such services shall be provided by the Manager and through such other agents and supervisors employed by the Manager as may be named by the Manager. 2. TERMS AND RENEWAL 2.1 The terms of the present Management Agreement shall run for [NUMBER] ([NUMBER]) months from the date of the opening for business of the Business, unless sooner terminated or subsequently continued in accordance with the terms and conditions of the present Management Agreement. 2.2 The Company may, at its option, renew the present Management Agreement for an additional period of [NUMBER] ([NUMBER]) months, provided that at the end of the initial term: 2.2.1 the Company has given the Manager written notice of such election to renew not less than [NUMBER] ([NUMBER]) months and not more than [NUMBER] ([NUMBER]) months prior to the expiry of the initial term; 2.2.2 the Company has satisfied all monetary obligations owed by it to the Manager, and has timely met such obligations throughout the term of the present Management Agreement; 2.2.3 the Company shall execute not less than [NUMBER] ([NUMBER]) months prior to renewal the Manager's then-current form of Management Agreement, which Agreement shall supersede in all respects the present Management Agreement, and the terms of which may differ from the terms of the present Management Agreement, including, without limitation, a revised Management Fee; and 2.2.4 the Company shall execute a general release, in a form prescribed by the Manager, of any and all claims against the Manager and its subsidiaries and affiliates, if any, and in respect of their respective officers, directors, agents and employees. 3. FEES AND PAYMENTS 3.1 The Company shall pay to the Manager during the terms of this Management Agreement a fee for its management services in an amount equal to [PERCENTAGE %] percent ([PERCENTAGE %]) of the Gross Sales at the Business (the \"Management Fee\"), which Management Fee shall be payable monthly in arrears. The term \"Gross Sales\" as used herein shall include the aggregate of the total amount of all sales, receipts, receivables, sales of merchandise made or services rendered in, at, on, or from the Business, and sales wherever made of food, beverage and products stored on the Business's premises, including catering on and off the Business's premises, or any other business conducted from the Business, whether made by the Company or any assignee, successor or sub-lessee, and whether made on a cash basis, or by check, or on credit, paid or unpaid, collected or uncollected, including deposits not refunded to customers, and the amount of any orders received at or solicited from the Business although such orders may be filled elsewhere, in the same manner and with the same effect as if such sales or services have been made or performed on the Business premises. Each charge or sale upon credit shall be treated as a sale for the full price in the week during which such charge or sale shall be made, irrespective of the time when the Company shall receive payment, either full or partial, therefor. Any installation fee, continuing rental, or percentage sales or any other revenue received by the Franchisee from vending and other machines and public telephone permitted to be installed on the Business's premises under Paragraph 5.6 hereof shall form part of Gross Sales. 3.4 The term \"Gross Sales\" as used herein shall not, however, include, or there shall be deducted therefrom, as the case may be the following amounts: the amount of all sales for which cash has been refunded, but only to the extent of such refund, provided that the amount of such sales shall have previously been included in Gross Sales; the amount of any gratuities to employees; the amount of any sales, retail, excise, or similar tax imposed by any federal, provincial, municipal or other governmental authority directly on sales or services and added to the price thereof, where such amounts have been collected from the customer at the point of sale by the Company acting as agent for such authority and actually in turn paid by the Company to such governmental authority; the amount of any promotional discounts approved by the Franchisor, including, without limitation, coupon redemptions and other sales of food pursuant to promotional programs which have been approved in writing by the Franchisor prior to implementation; meals served to employees of the Company and consumed on the Business's premises, provided an accurate list of such meals consumed is reported on the weekly report required by Paragraph 4.3 hereinabove. 3.5 The Manager shall be reimbursed for all travelling and other expenses actually and properly incurred by it in connection with its duties hereunder. The Manager shall furnish statements and vouchers to the Company in respect of all such expenses for which reimbursement is claimed. 3.6 All monthly payments required by this Article 3 must be paid by check drawn to the order of the Manager and received by the Manager at its address designated in sub-paragraph 9.1.1 hereof, by [HOUR] o'clock in the afternoon ([HOUR] a.m/p.m.) on the [DAY] immediately following the close of each monthly period, accompanied by a written report detailing the calculations of the Company's Gross Sales at the Business for each such monthly period. If any payment is overdue, the Company shall pay to the Manager, in addition to the overdue amount, interest on such amount from the date it was due until the date of payment, at the rate of [PERCENTAGE %] percent ([PERCENTAGE %]) per annum, and entitlement to such interest shall be in addition to any other remedies which the Manager may have. 4. AUTHORITY, POWER, OBLIGATIONS AND RESPONSIBILITIES OF THE MANAGER 4.1 The Manager shall have full power and authority to manage the Business on behalf of the Company during the terms of the present Management Agreement. 4.2 For greater certainty, the Manager's authority, powers, duties and responsibilities hereunder towards the Company shall include: 4.2.1 the recruitment, employment, and dismissal of all employees of the Company working in the Business; 4.2","Management Agreement","6",63,"https://templates.business-in-a-box.com/imgs/1000px/management-agreement-D163.png","https://templates.business-in-a-box.com/imgs/250px/163.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#163.xml",{"title":6,"description":6},[113],{"label":114,"url":115},"Consultant & Contractors","consulting-contractor-business","loan agreement","/template/loan-agreement-D163",{"description":119,"descriptionCustom":6,"label":120,"pages":90,"size":121,"extension":10,"preview":122,"thumb":123,"svgFrame":124,"seoMetadata":125,"parents":126,"keywords":132,"url":133},"TERM SHEET Issue: [Venture Capital FIRM] (\"VC\") and/or any member of its corporate group (\"the VC Group\") will purchase up to [AMOUNT] Series A Convertible Preferred Stock (\"Series A\") newly issued by [YOUR COMPANY NAME] (the \"Company\") at a price per share of [PRICE] (the \"Purchase Price\"). In addition, other investors shall purchase at least [AMOUNT] but not more than [AMOUNT] of newly issued Series A at the Purchase Price. The shares of Series A will be convertible at any time at the option of the holder into common shares of the Company (\"Common Stock\") on a one-for-one basis, adjusted for future share splits. The Purchase Price equates to a pre-money valuation of [VALUATION]. The calculation is based on [NUMBER] fully diluted shares of Common Stock. If the number of shares issued, or stock awards/options authorized increases before the closing the price per share for Series A Convertible Preferred Stock shall be reduced so that the pre-money valuation is unchanged. The Series A Convertible Preferred Stock shall be referred to herein as the \"Preferred Stock.\" Dividend: The Preferred Stock is entitled to an annual [AMOUNT] per share dividend, payable when and if declared by the Board of Directors, but prior to any payment on Common Stock; dividends are not cumulative. Liquidation Preference: The Series A will have a liquidation preference so that proceeds on a merger, sale or liquidation (including non-cumulative dividends) will first be paid to the Series A and will include a [%] per annum compounding guaranteed return calculated on the total amount invested. Upon completion of an additional round of funding of at least [AMOUNT] the compounding guaranteed return feature will expire. The liquidation preference will cease to operate if the proceeds due to Series A, on a merger, sale or liquidation on an as-converted basis, exceed the proceeds that would be due under the liquidation preference. Use of Proceeds: The funds raised by Series A will be used principally for general working capital purposes. Voting Rights: The holders of the Series A shall have the right to vote with the Common Stock on an as-if-converted basis. Redemption: If not previously converted, the Series A is to be redeemed in three equal successive annual installments beginning [DATE]. Redemption will be at the purchase price plus a [%] per annum cumulative guaranteed return. Pre-emptive Rights: Holders of the Preferred Stock will be granted rights to participate in future equity financings of the Company based upon their pro-rata, as-if-converted, ownership of the Company. Automatic Conversion: The Preferred Stock shall be automatically converted into Common Stock at the then applicable conversion rate (1:1 assuming no share splits) in the event of an underwritten public offering of shares of the Company at a total offering of not less than [AMOUNT] and at a per share public offering price of not less than three times the Series A purchase price per share, adjusted for splits. Anti-Dilution: Series A shall have weighted average anti-dilution, based on a weighted average formula to be agreed, for all securities purchased as part of this transaction (excluding shares, options and warrants issued for management incentive and small issues for strategic purposes of under [NUMBER] shares). Management Options: Simultaneously with this transaction, one million new shares shall expand the Company's management incentive stock option pool - bringing the total number of shares issued and stock incentives (awards and options) authorized to [NUMBER OF SHARES]. Rights of First Offer; Tag-Along: The Company and the Investors will have a right of first refusal with respect to any employee's shares proposed to be resold. Alternatively, the Investors will have the right to participate in the sale of any such shares to a third party (co-sale rights), which rights will terminate upon a public offering. Information Rights: Monthly actual vs. plan and prior year. Annual budget [NUMBER] days before beginning of fiscal year","Term Sheet",42,"https://templates.business-in-a-box.com/imgs/1000px/term-sheet-D473.png","https://templates.business-in-a-box.com/imgs/250px/473.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#473.xml",{"title":6,"description":6},[127,129],{"label":33,"url":128},"finance-accounting",{"label":130,"url":131},"Raising Capital","raising-capital","term sheet","/template/term-sheet-D473",{"description":135,"descriptionCustom":6,"label":136,"pages":90,"size":137,"extension":10,"preview":138,"thumb":139,"svgFrame":140,"seoMetadata":141,"parents":142,"keywords":150,"url":151},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[143,144,147],{"label":33,"url":128},{"label":145,"url":146},"Business Loans","business-loan",{"label":148,"url":149},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":153,"descriptionCustom":6,"label":154,"pages":8,"size":9,"extension":10,"preview":155,"thumb":156,"svgFrame":157,"seoMetadata":158,"parents":160,"keywords":159,"url":165},"CREDIT NOTE CREDIT NOTE NUMBER: [Unique Credit Note Number] INVOICE NUMBER: [Related Invoice Number] DATE OF INVOICE: [Date of Related Invoice] [YOUR COMPANY NAME] [YOUR COMPANY ADDRESS] [CITY, STATE, ZIP CODE] [DATE] [CUSTOMER NAME] [CUSTOMER ADDRESS] [CITY, STATE, ZIP CODE] ","Credit Note","https://templates.business-in-a-box.com/imgs/1000px/credit-note-D13639.png","https://templates.business-in-a-box.com/imgs/250px/13639.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13639.xml",{"title":159,"description":6},"credit note",[161,164],{"label":162,"url":163},"Credit & Collection","credit-collection",{"label":162,"url":163},"/template/credit-note-D13639",{"description":167,"descriptionCustom":6,"label":168,"pages":8,"size":9,"extension":10,"preview":169,"thumb":170,"svgFrame":171,"seoMetadata":172,"parents":174,"keywords":173,"url":177},"BUSINESS CREDIT APPLICATION Name/Address Last: First: Middle Initial: Title Company Name: Tax I.D. Number Address: City: State/Province: ZIP/Postal Code: Phone: Company Information Type of Business: In Business Since: Legal Form Under Which Business Operates: State/Province/Country: Corporation Partnership Proprietorship Other If Division/Subsidiary, Name of Parent Company: In Business Since: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: Name of Company Principal Responsible for Business Transactions: Title: Address: City: State/Province: ZIP: Phone: ","Business Credit Application","https://templates.business-in-a-box.com/imgs/1000px/business-credit-application-D247.png","https://templates.business-in-a-box.com/imgs/250px/247.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#247.xml",{"title":173,"description":6},"business credit application",[175,176],{"label":162,"url":163},{"label":162,"url":163},"/template/business-credit-application-D247",false,{"seo":180,"reviewer":192,"legal_disclaimer":178,"quick_facts":196,"at_a_glance":198,"personas":202,"variants":227,"glossary":254,"clauses":283,"how_to_fill":324,"common_mistakes":360,"faqs":377,"industries":402,"comparisons":419,"diy_vs_pro":431,"educational_modules":444,"related_template_ids_curated":447,"schema":457,"classification":459},{"meta_title":181,"meta_description":182,"primary_keyword":183,"secondary_keywords":184},"Commitment Letter Template (Free Word)","Free commitment letter template for lenders and investors confirming financing terms. Download in Word, edit online, or export as PDF. Used in 190+ countries. Free Word and PDF download.","commitment letter template",[185,186,187,188,189,190,191],"commitment letter template word","loan commitment letter template","financing commitment letter","investment commitment letter","commitment letter sample","commitment letter free download","lender commitment letter template",{"name":193,"credential":194,"reviewed_date":195},"Bruno Goulet","CEO, Business in a Box","2026-05-01",{"difficulty":197,"legal_review_recommended":178,"signature_required":178,"notarization_required":178},"medium",{"what_it_is":199,"when_you_need_it":200,"whats_inside":201},"A Commitment Letter is a formal written statement — typically issued by a lender, investor, or financial institution — confirming intent to provide financing or capital under defined terms and conditions. This free Word download gives you a structured starting point you can edit online and export as PDF to satisfy due-diligence requirements or transaction closing conditions.\n","Use it when a borrower or investee needs written confirmation of financing terms before a deal closes, a property purchase proceeds, or a board approves a transaction. It is commonly required by real estate attorneys, M&A advisors, and corporate legal teams as a condition of moving forward.\n","Parties and transaction summary, financing amount and instrument type, interest rate and repayment terms, conditions precedent to funding, expiration date, and a disclaimer on the non-binding or binding nature of the letter.\n",[203,207,211,215,219,223],{"title":204,"use_case":205,"icon_asset_id":206},"Commercial lenders and banks","Issuing formal financing commitments to business borrowers before closing","persona-lender",{"title":208,"use_case":209,"icon_asset_id":210},"Private equity and venture investors","Confirming investment terms to a portfolio company or co-investor","persona-investor",{"title":212,"use_case":213,"icon_asset_id":214},"Real estate developers","Satisfying a seller's proof-of-financing requirement before contract execution","persona-real-estate-developer",{"title":216,"use_case":217,"icon_asset_id":218},"Small business owners","Presenting a lender's commitment to a landlord, franchisor, or acquisition target","persona-small-business-owner",{"title":220,"use_case":221,"icon_asset_id":222},"M&A advisors and deal attorneys","Attaching a financing commitment to a letter of intent or purchase agreement","persona-ma-advisor",{"title":224,"use_case":225,"icon_asset_id":226},"CFOs and finance directors","Documenting approved credit facilities for board reporting and audit purposes","persona-cfo",[228,232,235,239,242,246,250],{"situation":229,"recommended_template":230,"slug":231},"Confirming a commercial mortgage or real estate acquisition loan","Mortgage Commitment Letter","commitment-letter-D12999",{"situation":233,"recommended_template":234,"slug":231},"Documenting a term loan to a small business borrower","Business Loan Commitment Letter",{"situation":236,"recommended_template":237,"slug":238},"Expressing early interest before full due diligence is complete","Letter of Intent","letter-of-intent_acquisition-of-business-D5197",{"situation":240,"recommended_template":241,"slug":231},"Confirming a revolving credit or working capital facility","Credit Facility Commitment Letter",{"situation":243,"recommended_template":244,"slug":245},"Formalizing an equity investment term sheet into a commitment","Investment Term Sheet","term-sheet-D473",{"situation":247,"recommended_template":248,"slug":249},"Providing proof of funds for a real estate purchase offer","Proof of Funds Letter","proof-of-concept-D13169",{"situation":251,"recommended_template":252,"slug":253},"Outlining final loan terms before formal loan agreement is drafted","Loan Agreement","loan-agreement-D163",[255,257,260,263,266,268,271,274,277,280],{"term":7,"definition":256},"A written statement from a lender or investor confirming their intent to provide financing under specific terms, typically issued before formal loan documents are executed.",{"term":258,"definition":259},"Conditions Precedent","Requirements the borrower or investee must satisfy before the lender is obligated to fund — such as delivering financial statements, appraisals, or corporate approvals.",{"term":261,"definition":262},"Commitment Fee","A fee charged by a lender to hold financing available for a borrower during the commitment period, typically expressed as a percentage of the committed amount.",{"term":264,"definition":265},"Expiration Date","The deadline by which the borrower must accept the commitment and satisfy all conditions, after which the lender's obligation lapses.",{"term":120,"definition":267},"A preliminary, often non-binding document summarizing the key economic and structural terms of a proposed financing or investment, which a commitment letter formalizes.",{"term":269,"definition":270},"Due Diligence","The process by which a lender or investor investigates a borrower's financial condition, legal standing, and collateral before committing to fund.",{"term":272,"definition":273},"Binding vs. Non-Binding Letter","A binding commitment letter creates enforceable obligations on both parties; a non-binding letter confirms intent only and may be withdrawn subject to final diligence or approval.",{"term":275,"definition":276},"Closing Conditions","Specific actions or deliverables — such as executing loan documents, obtaining insurance, or clearing title — that must occur before funds are disbursed.",{"term":278,"definition":279},"Drawdown","The act of a borrower requesting and receiving all or part of committed funds under an approved facility.",{"term":281,"definition":282},"Collateral","An asset pledged by the borrower to secure repayment of a loan — if the borrower defaults, the lender may seize and sell the collateral to recover the debt.",[284,289,294,299,304,309,314,319],{"name":285,"plain_english":286,"sample_language":287,"common_mistake":288},"Date, parties, and transaction reference","Identifies the issuing lender or investor, the borrower or investee, and a brief description of the transaction being financed.","[DATE] | [LENDER NAME] ('Lender') is pleased to confirm its commitment to provide financing to [BORROWER LEGAL NAME] ('Borrower') in connection with [BRIEF TRANSACTION DESCRIPTION].","Using a trade name instead of the lender's registered legal entity name — if the commitment is ever disputed, enforcing it against the correct entity becomes unnecessarily complicated.",{"name":290,"plain_english":291,"sample_language":292,"common_mistake":293},"Financing amount and instrument type","States the exact dollar amount committed and whether it is a term loan, revolving facility, mortgage, or equity investment.","Lender commits to provide a [TERM LOAN / REVOLVING CREDIT FACILITY / MORTGAGE] in the principal amount of $[AMOUNT] ([WRITTEN AMOUNT] Dollars).","Omitting the instrument type and relying solely on the dollar figure — different instruments carry fundamentally different repayment structures and borrower obligations.",{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Interest rate and fees","Specifies the applicable interest rate (fixed or variable, and the index if variable), origination fee, and commitment fee.","Interest shall accrue at [X]% per annum ([fixed / variable at [INDEX] + [SPREAD] bps]). An origination fee of [X]% of the committed amount is payable at closing. A commitment fee of $[AMOUNT] is due upon acceptance of this letter.","Leaving the rate as a range ('between 6% and 9%') rather than a fixed figure or a defined index-plus-spread formula — ranges invite later disputes about which rate applies.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Repayment terms and maturity","Defines the loan term, amortization schedule (if any), and the final maturity date when the outstanding balance is due.","The loan shall mature [X] years from the closing date. Principal shall be repaid in [monthly / quarterly] installments of $[AMOUNT], with the remaining balance due in full on [MATURITY DATE].","Describing repayment as 'standard amortization' without specifying the period — a 20-year amortization with a 5-year balloon is materially different from a fully amortizing 5-year loan.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Conditions precedent to funding","Lists the specific deliverables the borrower must provide or satisfy before the lender is required to fund.","This commitment is conditioned upon: (a) satisfactory appraisal of [COLLATERAL]; (b) delivery of [YEAR] and [YEAR] audited financial statements; (c) execution of all definitive loan documents; (d) evidence of [INSURANCE TYPE] insurance naming Lender as additional insured; and (e) [ANY OTHER CONDITIONS].","Using open-ended conditions like 'satisfactory due diligence' without specifying what constitutes satisfaction — this gives the lender a subjective exit and creates uncertainty for the borrower.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Collateral and security","Identifies the assets the borrower pledges to secure the loan and any lien priority the lender requires.","As security for the loan, Borrower shall grant Lender a first-priority [MORTGAGE / SECURITY INTEREST / PLEDGE] over [DESCRIPTION OF COLLATERAL], free and clear of all prior liens except [PERMITTED EXCEPTIONS].","Failing to specify lien priority — a second-lien position has significantly less recovery value than a first lien and should be explicitly stated, not assumed.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Expiration and acceptance","Sets the deadline for the borrower to accept the commitment in writing and describes how acceptance is communicated.","This commitment expires at 5:00 PM [TIMEZONE] on [DATE] unless accepted in writing by Borrower prior to that time. Acceptance is effected by returning a countersigned copy of this letter accompanied by the commitment fee.","Not specifying a time zone on the expiration — for multi-jurisdiction transactions, ambiguous expiration times have caused legitimate commitment disputes.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Binding nature and disclaimer","States clearly whether the letter is legally binding, non-binding, or binding only as to certain provisions such as exclusivity or confidentiality.","This letter reflects Lender's current intent to provide the financing described herein and is [binding / non-binding] on Lender, subject to completion of due diligence and execution of definitive loan documents. [This letter does not constitute a loan agreement or obligate Lender to fund absent satisfaction of all conditions set forth herein.]","Omitting the binding-nature clause entirely — courts have held ambiguous commitment letters to be enforceable contracts when both parties behaved as though the deal was done.",[325,330,335,340,345,350,355],{"step":326,"title":327,"description":328,"tip":329},1,"Enter the lender's and borrower's legal names","Use each party's full registered legal name — not a trade name or DBA. Include the entity type (LLC, corporation, LP) and state or country of formation.","Cross-reference the borrower's name against their most recent bank statement or certificate of good standing before inserting it — name mismatches delay closing.",{"step":331,"title":332,"description":333,"tip":334},2,"Describe the transaction in one or two sentences","Identify what the financing is for — acquisition of a specific property, working capital for operations, equipment purchase — with enough specificity that both parties can point to the same deal.","If a purchase agreement or term sheet already exists, reference it by date and parties rather than re-describing it in full.",{"step":336,"title":337,"description":338,"tip":339},3,"State the financing amount, instrument, and rate","Enter the exact committed dollar amount, the type of instrument (term loan, revolver, or mortgage), and a fixed rate or a defined floating-rate formula (e.g., SOFR + 250 bps).","Write out the dollar amount in both numerals and words — '$2,500,000 (Two Million Five Hundred Thousand Dollars)' — to eliminate transcription disputes.",{"step":341,"title":342,"description":343,"tip":344},4,"Define the repayment schedule and maturity","Set the loan term, amortization period, payment frequency, and final maturity date. If there is a balloon payment, state the amount explicitly.","Attach a simple amortization table as an exhibit if the schedule is anything other than fully amortizing — it removes all ambiguity about payment amounts.",{"step":346,"title":347,"description":348,"tip":349},5,"List all conditions precedent with specificity","Write out every document, approval, and deliverable the borrower must provide before funding. Number each item and avoid catch-all language like 'other conditions as lender may require.'","Review the list with the borrower before issuing the letter — surfacing undisclosed issues early prevents failed closings.",{"step":351,"title":352,"description":353,"tip":354},6,"Identify the collateral and lien position","Name the specific assets being pledged, describe the required security interest type, and state the lender's required lien priority.","Run a UCC or title search before issuing the commitment to confirm no undisclosed prior liens exist on the intended collateral.",{"step":356,"title":357,"description":358,"tip":359},7,"Set the expiration date and acceptance mechanics","Choose an expiration date that gives the borrower adequate time to review and return the letter — typically 5 to 10 business days — and specify the time zone and method of acceptance.","Email countersignature is standard and legally sufficient in most jurisdictions; requiring wet-ink return by courier slows closings without adding legal protection.",[361,365,369,373],{"mistake":362,"why_it_matters":363,"fix":364},"Leaving the binding-nature clause ambiguous","Courts have treated ambiguous commitment letters as enforceable contracts when both parties proceeded as though the deal was closed, exposing lenders to damages for failure to fund.","Include an explicit sentence stating whether the letter is binding, non-binding, or binding only as to specific provisions — and have the borrower acknowledge the distinction in writing.",{"mistake":366,"why_it_matters":367,"fix":368},"Using open-ended conditions precedent","Phrases like 'satisfactory completion of due diligence' give the lender a subjective exit clause that the borrower cannot reliably plan around, creating uncertainty and potential litigation.","List every condition as a specific, objective deliverable — a named document, a minimum financial ratio, or a dated approval — so satisfaction is measurable.",{"mistake":370,"why_it_matters":371,"fix":372},"Omitting the expiration date and time zone","Without a clear expiration, a commitment can be claimed to remain open indefinitely, obligating the lender long after market conditions or the borrower's creditworthiness has changed.","Always include a specific expiration date and time with the time zone, and confirm with the borrower that they have enough time to countersign and return the fee before the deadline.",{"mistake":374,"why_it_matters":375,"fix":376},"Misidentifying collateral without a prior lien search","Issuing a commitment that promises a first-lien position on collateral already encumbered by a prior lender creates a closing crisis and potential lender liability.","Run a UCC search, title search, or equivalent before the commitment is issued, and explicitly carve out any permitted prior liens in the collateral clause.",[378,381,384,387,390,393,396,399],{"question":379,"answer":380},"What is a commitment letter?","A commitment letter is a formal written statement issued by a lender or investor confirming their intent to provide financing or capital under defined terms. It specifies the amount, instrument type, rate, repayment structure, and conditions the borrower must satisfy before funds are released. It is commonly required in real estate transactions, M&A deals, and commercial lending as evidence that financing is in place.\n",{"question":382,"answer":383},"Is a commitment letter legally binding?","It depends on the language of the letter itself. Some commitment letters are expressly binding on the lender once accepted; others are stated as non-binding expressions of intent, subject to completion of due diligence and execution of definitive documents. Courts have in some cases found ambiguous letters to be enforceable, so the binding-nature clause should always be explicit. Review the specific language carefully before relying on a commitment letter as a firm funding guarantee.\n",{"question":385,"answer":386},"What is the difference between a commitment letter and a term sheet?","A term sheet is typically an earlier, less formal document summarizing the key economic terms of a proposed deal — it is almost always non-binding. A commitment letter is issued after initial due diligence and represents a firmer, more detailed confirmation of financing intent. The commitment letter typically incorporates the term sheet's economics and adds conditions precedent, collateral requirements, and expiration mechanics.\n",{"question":388,"answer":389},"What is the difference between a commitment letter and a loan agreement?","A commitment letter confirms intent to lend under stated terms; a loan agreement is the definitive, fully binding contract that governs the actual lending relationship. The commitment letter typically precedes the loan agreement and is often a closing condition in real estate or M&A transactions. Once the loan agreement is executed and funds are disbursed, the commitment letter is superseded.\n",{"question":391,"answer":392},"What are conditions precedent in a commitment letter?","Conditions precedent are specific deliverables or approvals the borrower must satisfy before the lender is obligated to fund. Common examples include delivering audited financial statements, providing a satisfactory property appraisal, obtaining title insurance, and executing all definitive loan documents. Each condition should be described as a specific, objective item — vague conditions give the lender an unilateral exit and create closing uncertainty.\n",{"question":394,"answer":395},"How long does a commitment letter remain valid?","A commitment letter is valid until its stated expiration date, which typically ranges from 30 to 90 days depending on deal complexity. Once the expiration passes without the borrower's written acceptance and payment of any required commitment fee, the lender's obligation lapses. Extensions are sometimes granted but should always be confirmed in a separate written amendment to the original letter.\n",{"question":397,"answer":398},"Who issues a commitment letter?","Commitment letters are most commonly issued by banks, credit unions, private lenders, and institutional investors. In real estate transactions, the mortgage lender issues one to satisfy the seller's proof-of-financing requirement. In M&A deals, the acquiring party's financing source issues one to support the buyer's ability to close. Private equity and venture investors may also issue commitment letters when confirming equity contributions.\n",{"question":400,"answer":401},"Does a commitment letter guarantee funding?","Not automatically. Most commitment letters are conditioned on the borrower satisfying all conditions precedent and on no material adverse change occurring before closing. A binding commitment letter does create legal obligations for the lender, but if the borrower fails to meet a stated condition or the lender's credit approval expires, the commitment may lapse. Always read every condition carefully before treating a commitment letter as a funding guarantee.\n",[403,407,411,415],{"industry":404,"icon_asset_id":405,"specifics":406},"Real Estate","industry-real-estate","Mortgage commitment letters satisfy seller proof-of-financing requirements and are typically required within 10–21 days of a purchase contract execution.",{"industry":408,"icon_asset_id":409,"specifics":410},"Mergers and Acquisitions","industry-ma","Financing commitment letters from lenders or private equity co-investors are attached to letters of intent and purchase agreements as evidence the buyer can close.",{"industry":412,"icon_asset_id":413,"specifics":414},"Small Business and SBA Lending","industry-small-business","SBA lenders issue commitment letters outlining loan program, amount, and conditions before the formal SBA authorization is issued, giving borrowers an actionable planning document.",{"industry":416,"icon_asset_id":417,"specifics":418},"Private Equity and Venture Capital","industry-private-equity","Investors issue commitment letters to confirm equity contributions in fund closings or co-investment rounds, specifying drawdown mechanics and capital call timelines.",[420,423,425,428],{"vs":237,"vs_template_id":421,"summary":422},"letter-of-intent-D12744","A letter of intent expresses a party's general desire to enter a transaction and outlines preliminary terms — it is almost always non-binding. A commitment letter is issued by a financing party after initial due diligence and confirms specific, actionable funding terms. LOIs open negotiations; commitment letters close them.",{"vs":252,"vs_template_id":253,"summary":424},"A loan agreement is the definitive, fully binding contract governing a lending relationship — it is executed at closing and disburses funds. A commitment letter precedes it, confirming intent and conditions before the legal drafting is complete. Once the loan agreement is signed, the commitment letter is superseded.",{"vs":120,"vs_template_id":426,"summary":427},"term-sheet-D13282","A term sheet summarizes the proposed economic and structural terms of a deal at an early stage and is typically non-binding. A commitment letter is issued later, incorporates the agreed terms, and adds specific conditions precedent and an expiration deadline. The commitment letter is the financing party's formal step toward closing.",{"vs":136,"vs_template_id":429,"summary":430},"promissory-note-D170","A promissory note is a legally binding promise by the borrower to repay a specific sum under stated terms — it is executed at or after closing. A commitment letter is issued before closing to confirm the lender's intent. The note documents an existing debt obligation; the commitment letter anticipates one that has not yet been created.",{"use_template":432,"template_plus_review":436,"custom_drafted":440},{"best_for":433,"cost":434,"time":435},"Standard commercial or real estate financing commitments where terms have already been agreed and conditions are straightforward","Free","15–30 minutes",{"best_for":437,"cost":438,"time":439},"Larger transactions, complex conditions precedent, or situations where binding language needs to be calibrated carefully","$200–$500 for a brief attorney review","1–2 days",{"best_for":441,"cost":442,"time":443},"Institutional lenders, cross-border financing, regulated lending environments, or transactions over $5M with multiple parties","$1,000–$3,000+","3–7 days",[445,446],"loan-commitment-process-explained","conditions-precedent-in-financing-transactions",[238,253,245,448,449,450,451,452,453,454,455,456],"promissory-note-D434","credit-note-D13639","business-credit-application-D247","non-disclosure-agreement-nda-D12692","checklist-customer-due-diligence-D13916","investment-proposal-D13992","credit-application-D13639","personal-guarantee-D405","collateral-agreement-D13257",{"emit_article":458,"emit_faq_page":458,"emit_how_to":458,"emit_defined_term":458,"emit_breadcrumb_list":458,"emit_software_application":178},true,{"primary_folder":128,"secondary_folder":460,"document_type":461,"industry":462,"business_stage":463,"tags":464,"confidence":469},"business-financing-and-loans","letter","general","all-stages",[465,461,466,467,468],"lender","legal","commitment-letter","financing",0.92,"\u003Ch2>What is a Commitment Letter?\u003C/h2>\n\u003Cp>A \u003Cstrong>Commitment Letter\u003C/strong> is a formal written document issued by a lender or investor to a borrower or investee confirming their intent to provide financing or capital under a specific set of terms. It identifies both parties, states the committed amount and instrument type, sets the interest rate and repayment structure, lists the conditions the borrower must satisfy before funds are released, and establishes an expiration date by which the borrower must accept. Unlike a casual term sheet, a commitment letter is issued after initial due diligence and represents a concrete, time-bound statement of financing intent that both parties can rely on to move a transaction forward.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written commitment letter, real estate purchase contracts stall because sellers have no evidence the buyer can close, M&A deals collapse at the due-diligence stage when acquirers cannot demonstrate financing, and borrowers lose credibility with counterparties who need certainty before committing their own resources. A properly drafted commitment letter protects the lender by conditioning the obligation to fund on specific, measurable deliverables — and protects the borrower by giving them a concrete document to present to attorneys, sellers, boards, and co-investors. This template gives you a professionally structured starting point that captures every material term, states the binding nature of the letter explicitly, and includes the conditions precedent language that prevents costly closing disputes.\u003C/p>\n",1781185957787]