Definition
Commitment fee is the fee charged by lenders for keeping a credit line available to borrowers. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Commitment fee?” The useful answer is concrete: fee charged by lenders for keeping a credit line available to borrowers. A slide title is not an answer.
Common mistake
Using Commitment fee as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Commercial paper
Short-term unsecured debt instrument issued by corporations for financing.
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Commission
Fee paid to salespeople or agents based on sales performance.
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Common denominator
Shared characteristic or factor that enables comparison between different items.
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Common market
Economic integration where countries allow free movement of goods and services.
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