Borrower Tips and Tricks: How to negotiate a
financing term sheet
What is a financing term sheet?
A financing term sheet is a document, usually issued by a lender
proposing to provide finance to a borrower, which gives an overview
of the key commercial terms being offered. Term sheets can vary
greatly depending on their purpose, who has issued the document and
how definitive the terms are intended to be.
Indicative term sheets or discussion papers are intended to
describe preliminary terms and often include heavy disclaimers
(e.g. they do not constitute an offer of finance, are subject to
further due diligence, and require credit approval). These are
usually issued at an early stage and intended to give an outline or
flavour of what the lender can provide for a transaction.
