A commitment fee refers to a prepayment made by a borrower to a lender to secure borrowing arrangements. It is an upfront fee paid to demonstrate the borrower's seriousness and commitment to follow through with the loan agreement.
Sentences with «commitment fee»
A one - time commitment fee of $ 200 is payable upon acceptance as a full member. (kingstongallery.com)
If you don't like the sound of that number, try to negotiate a lower commitment fee. (entrepreneur.com)
On the downside, there is an initial commitment fee. (lifeoncredit.ca)