What Is a Financial Commitment?

The borrower's commitment refers to the borrower's commitment to guarantee a reasonable financial ratio and maintain specific properties.

Borrower commitment

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The borrower's commitment refers to the borrower's commitment to guarantee a reasonable financial ratio and maintain specific properties.

Common Borrower Commitments

(1) Provide the lender with the true balance sheet, profit and loss account, and all information about the bank, account number, and deposit balance. ^[1]

(2) Accept the lender's supervision over its use of loan funds and related production operations and financial activities.

(3) Use the loan according to the specified purpose and pay off the loan principal and interest on schedule.

(4) To guarantee the debts of others with the assets of the enterprise, the lender shall be notified in advance and shall not affect the lender's recovery of the loan when due.

(5) The borrower's legal representative shall notify the lender in advance when changing, changing the residence or business place, and reducing the registered capital.

(6) The borrower shall notify the lender in advance of the implementation of contracting, leasing, joint venture, joint-stock reform, division, merger (merger), foreign investment and other reasons, and shall inform the lender in advance and implement the debt Repayment measures.