In one sentence
A non-binding summary of proposed loan terms, issued early to align the lender and borrower on structure before the expense of full documentation.
The longer version
A term sheet lays out the loan amount, rate, term, amortization, key covenants, and conditions, usually with explicit language that it binds no one. It exists to surface disagreements cheaply, before counsel and third-party reports run up cost.
Once signed, the term sheet becomes the reference the closing checklist is built against. The conditions listed here become the earliest version of the request list.
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