What should you check on a private lender term sheet?

The interest basis, the minimum term, the interest reserve, and a handful of definitions that look like boilerplate. Rate and LVR are the two numbers everyone reads and the two least likely to decide the outcome.

Does a verbal assurance override what a term sheet says?

No. Where a term sheet and a verbal assurance differ, the document governs, so any answer you intend to rely on should be given in writing.

How should two term sheets be compared?

On all-up dollar cost over the hold you actually expect, and on whether the facility's shape matches the exit, rather than on the headline rate.

Guide

The fields that decide what it costs.

Rate and LVR are the two numbers everyone reads and the two least likely to decide the outcome. What a private facility actually costs, and whether it settles on time, is set by the interest basis, the minimum term, the reserve, and a handful of definitions that look like boilerplate. Work through each field and get the answer in writing — a verbal answer that contradicts the document is worth nothing later.

0 / 0

How to use this. Ticks are saved in your own browser only. This is a commercial reading guide, not legal advice, and a term sheet is a document with legal consequences — have your solicitor review it. Where a term sheet and a verbal assurance differ, the document governs; and where a lender’s aggressive email and their signed documents differ, check what the documents actually permit before treating the email as the contractual position. General information only, not legal advice, financial product advice or credit assistance, and not an offer of finance.

Two term sheets, one comparison

The comparison that matters is all-up dollar cost over the hold you actually expect, plus whether the facility’s shape matches the exit. Send both and we will run them side by side.

Cost it out Send us the term sheets