Key Takeaways
- Solicit 5-7 lender term sheets simultaneously to maximize competitive leverage before negotiating with any single lender.
- Compare term sheets across all provisions—rate, fees, IO period, prepayment, recourse, reserves, and reporting requirements.
- The lowest rate may not produce the best returns when combined with higher fees, larger reserves, or restrictive terms.
- Use competing offers as leverage: "Lender B offered X—can you match or improve on that term?"
This track contains subscriber-only lessons
Explore free tracks in this area of study, or subscribe for full access.
Browse available tracks"Advanced Deal Structuring: Purchase Agreements, Lender Terms & Incentives" is a Pro track
Upgrade to access all lessons in this track and the entire curriculum.
Test Your Knowledge
1.What is a term sheet in lender negotiation?
2.What term sheet provisions should be compared across lenders?
3.How should competing term sheets be used as leverage?