Why do banks charge up-front fees and back-end fees on loan commitments?

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Why do banks charge up-front fees and back-end fees on loan commitments?

 

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In return for making the loan commitment, the bank may charge an up-front fee (or facility fee) of, say 1/8th of 1 percent of the commitment size. The bank may also charge the borrower a back-end fee (or commitment fee) on any unused balances on the commitment line at the end of the period.

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