Commitment Fee
Short definition
A commitment fee accrues on the undrawn balance. It is the price of limit insurance; cash leaves even with no draw.
Detailed explanation
Common on RCFs and unused term commitments. It can combine with a utilisation grid: a higher fee when utilisation is low. Paying the fee on undrawable unused is insurance that does not pay out.
It belongs in the budget as the cost of headroom. At full utilisation the fee drops and interest starts.
Why it matters for the CFO
A large undrawn RCF is not “cheap flexibility”; it is a standing cash leak. All-in is computed on the expected utilisation path.
How it is calculated
Taahhüt ücreti ≈ Kullanılmamış taahhüt × ücret oranı × süre
Variables in the formula
- Commitment fee: Undrawn balance × fee rate
How to read it
The fee scales with unused balance. At low utilisation the commitment fee can be a more visible all-in line than the margin.
Numerical example
Unused 40 mn TL at a 1.0% commitment fee → 0.40 mn TL per year with no draw.
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Definitions are educational. They are not investment, credit or tax advice.