Acceleration is the action taken by a lender demanding early repayment of the entire loan balance when a borrower defaults on the terms of the loan agreement.
An arrangement pertains to various structured agreements or settlements in financial, legal, and real estate contexts, where an intermediary plays a significant role.
An Earn-Out is a financial agreement used in mergers and acquisitions (M&A) where supplementary purchase payments are made to the seller contingent upon the acquired company achieving certain future financial goals, typically based on earnings, revenues, or other performance metrics.
A loan commitment is an agreement by a financial institution to lend a specified amount of money on established terms in the future. This commitment outlines the conditions under which the loan will be provided and ensures the borrower of available funds when needed.
Understanding the concept of 'Up Front' in financial, legal, and conversational contexts is essential for clear communication and transparency in agreements and interactions.
