Letter of Intent
A preliminary written agreement outlining a business's intent to proceed with a transaction, such as a business acquisition or major financing deal, before final terms are finalized.
A letter of intent typically covers the broad outline of a deal, price range, timeline, and key conditions, and while parts of it can be binding, most of it is meant to guide the parties toward a final, detailed agreement rather than serve as the agreement itself.
In a business acquisition or larger financing transaction, a letter of intent often triggers the start of formal due diligence, since both sides generally want some commitment in place before investing significant time in a deeper review.
Related funding options
Ready to explore your funding options?
One application, matched to funding options across our lending network.