DELAYED DRAW TERM LOAN

A feature in a loan that stipulates the borrower. It says that the borrower can withdraw predefined amounts of the total pre-approved amount of a term loan at contractual times. This type of loan is only offered to individuals that meet a certain requirements and have outstanding credit ratings. There are different types of contractual caveats the borrower must meet, such as maintaining a certain level of cash on hand or maintaining a minimum quick ratio factor.