What Is a Lender Commitment Letter for an Acquisition?

Business Acquisition

What Is a Lender Commitment Letter for an Acquisition?

A commitment letter is the closest thing to “financing clarity” in the middle of a live acquisition. It is not the final loan agreement, yet it should lock the core economics and conditions so everyone can close.

If you want the full breakdown, see: Secure your acquisition financing with a lender commitment letter.

1) What a Commitment Letter Does

In plain terms, it confirms the lender’s intent to fund subject to stated conditions. It helps you negotiate with the seller, coordinate diligence, and plan closing steps. It also exposes the real constraints early: leverage limits, covenants, collateral expectations, and closing deliverables.

2) What Should Be Inside

3) The Most Common Failure Point

Problem: the buyer treats a soft indication as a commitment.

Fix: get the core terms in writing, then run diligence against the stated CPs. If the lender is not willing to write down conditions, the “approval” is not mature.

4) Where Financely Fits

Financely runs acquisition financing as a structured lender process, with a lender-ready package, coordinated outreach, and term sheet workflow. Start with: SMB acquisition finance and our overview of small business acquisitions.

Request Indicative Terms

Share your LOI or purchase agreement, target summary financials, and buyer profile. We will revert with likely lender structures and what a commitment letter should cover for your deal. For process expectations, see How It Works.

This page is for general information only and does not constitute legal, tax, investment, or regulatory advice. Financely is not a bank and does not custody client funds. All outcomes are subject to diligence, compliance screening including KYC, AML, and sanctions, lender approvals, and definitive documentation.