Investments glossary

Delayed Draw Term Loan Definition

A delayed draw term loan (DDTL) is a special feature in a term loan that lets a borrower withdraw predefined amounts of a total pre-approved loan amount. The withdrawal periods—such as every three, six, or nine months—are also determined in advance. A DDTL is included as a provision of the borrower’s agreement, which lenders may offer to businesses with high credit standings. A DDTL is often included in contractual loan deals for businesses who use the loan proceeds as financing for future acquisitions or expansion.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *