What is a Term Sheet? What does it mean? When can you expect to get one?
Hello! Have you ever wondered what a term sheet is? Well, I’m here to answer that question.
My name is Faisal Khan. I’m a banking and a payment consultant. And in the money transfer world when you’re dealing with financial institutions or you’re dealing with nonbanking financial institutions you will come across a term called a term sheet. A term sheet is basically just a fancy way of saying “for the length of the contract, this is what the pricing is.” It’s the price. It’s the price that they will charge for the services that you are asking for.
A term sheet basically includes the length of the contract – the term for which the sheet is being prepared for. So they may say that this term sheet is valid for one year, this term sheet is valid for 24 months, etc. And then there are all sorts of costs and it’s given down in a very broken down manner. So one-time costs, audit fees, per transaction fees, volume fees etc. and that is what a term sheet is. A term sheet is nothing more than the aggregated financial quote that a company or a bank is providing to you. I hope I was able to answer the question. If you have any more, feel free to ask below, I’ll be happy to help. Take care,