What does LTC mean in business terms
DEFINITION of 'Loan-To-Cost Ratio-LTC'. A ratio used in commercial real estate construction to compare the amount of the loan used to finance a project to the cost to build the project.If the project cost $1 million to complete and the borrower was asking for $800,000, the loan-to-cost (LTC) ratio would be 80%.he LTC ratio helps commercial real estate lenders assess the risk of making a construction loan. The higher the LTC ratio, the higher the risk. A similar, commonly used metric, the loan-to-value ratio, compares the amount of the loan to the fair-market value of the project. RELATED TERMS.