Takeout,

Definition of Takeout:

1. 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.

2. 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.

3. 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?

1. 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.
2. 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.
3. A takeout refers to the company being taken out of play, which occurs when the acquisition has been finalized.