Jurisdiction(s):
United Kingdom

Key definition

Term definition

What does Term mean? In lending practice, the term is the length of time a loan is intended to run, from initial drawdown (or first utilisation) to the final scheduled repayment date (often called the maturity date or final repayment date). It is market usage rather than a statutory concept, and the meaning is consistent across England & Wales, Scotland, Northern Ireland and Ireland. Consumer credit rules require disclosure of the duration of an agreement, but do not redefine the term. Key features: - Also known as the tenor. - For amortising loans, the term covers the period over which instalments are scheduled; for bullet loans,...

Term sheets and commitment letters in loan transactions: use, binding effect, negotiation issues for borrowers and lenders, key LMA provisions and case law risks

Published by a LexisNexis Banking & Finance expert

Practice notes

Practice Note

term sheets in lending transactions

This overview introduces key information on term sheets used in lending arrangements. It covers:

the situations in which term sheets are deployed in lending transactions
when term sheets are intended to be legally binding
principal considerations when negotiating term sheets for borrowers and lenders
core provisions in term sheets, including those in the Loan Market Association (LMA) recommended form of term sheet

For a more detailed discussion of the LMA investment grade term sheet, see Practice Note: Loan Market Association investment grade term sheet—commentary. For practical guidance on negotiation points in term sheets, see Practice Note: How to draft and negotiate a LMA investment grade term sheet. For a precedent term sheet for a bilateral lending transaction, see Precedent: Term sheet (for a term loan facility): single company borrower—bilateral—with or without security or a guarantee. For a precedent term sheet for use in a syndicated transaction, see Precedent: Investment grade term sheet (for a term loan facility): single company borrower—syndicated—with or without guarantees. For information on term sheets in acquisition finance transactions, see Practice Notes: Term sheets in leveraged finance transactions and Best Practice Guide for Term Sheet Completeness—Explainer...

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Web page updated on 22/05/2026

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