Takeout - How To Discuss
By Mia Kelly •
Takeout,
Definition of Takeout:
Takeout is a term that has several uses in the financial industry but the two main uses for this term are as a type of financing or the purchase of a company.
Takeout can either refer to a loan that replaces another loan or a slang term for the purchase of a company via an acquisition, merger or buyout.
Banking term for paying off another lender, in order to take sole and complete charge on a collateral. Takeout commitments are common in construction loans where long-term financing (permanent financing) replaces short-term or bridge loans when the construction project reaches a certain milestone or stage.
How to use Takeout in a sentence?
- Takeout can either refer to a loan that replaces another loan or a slang term for the purchase of a company via an acquisition, merger or buyout.
- A takeout loan is long-term financing that the lender promises to provide at a particular date or when particular criteria for completion of a project are met and is quite common in property development.
- A takeout refers to the company being taken out of play, which occurs when the acquisition has been finalized.
Meaning of Takeout & Takeout Definition
