Letter of Intent Sample for Loan Application

LETTER OF INTENT (LOI): COMMERCIAL LOAN FACILITY

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Province, Country]
• Classification: Confidential / Preliminary Credit Instrument

LEGAL NOTICE & DISCLAIMER

This Letter of Intent (LOI) is an expression of interest and does not constitute a legally binding commitment to lend, nor does it create a definitive credit agreement. The issuance of funds remains subject to final due diligence, internal credit committee approval, and the execution of a definitive Credit Agreement. All information provided herein is subject to the [Company Name] Privacy Policy and applicable financial regulations.

1. PARTIES

• Borrower: [Full Legal Name of Company], a [Legal Entity Type] organized under the laws of [Jurisdiction], having its principal place of business at [Address] ("Borrower").
• Lender: [Full Legal Name of Institution], having its principal place of business at [Address] ("Lender").

2. LOAN TERMS & CONDITIONS

The parties intend to enter into a credit facility based on the following material terms:

1. Loan Amount: Up to [Currency and Amount].
2. Purpose: [Specific use of proceeds, e.g., working capital, equipment acquisition].
3. Interest Rate: [e.g., Prime Rate + X%] per annum, calculated on a [360/365]-day basis.
4. Maturity/Term: The loan shall have a term of [Number] months/years, maturing on [Date].
5. Repayment Structure: [e.g., Monthly Principal + Interest; Interest-only then balloon; Amortized].
6. Collateral/Security: This facility shall be [Unsecured / Secured by a first-priority security interest in all business assets].

3. DUE DILIGENCE & CONDITIONS PRECEDENT

The Lender’s obligation to fund is contingent upon:

1. Satisfactory Due Diligence: Verification of Borrower’s financial statements, tax filings, and legal standing.
2. Material Adverse Change: The absence of any material adverse change in the Borrower’s financial condition prior to closing.
3. Documentation: Execution of a definitive Credit Agreement, Promissory Note, and Security Agreement satisfactory to Lender’s counsel.

4. GOVERNING LAW & EXCLUSIVITY

• Exclusivity: The Borrower grants the Lender an exclusivity period of [Number] days from the Effective Date to finalize due diligence.
• Governing Law: This LOI shall be governed by the laws of [Jurisdiction].

5. SIGNATURES & ACKNOWLEDGMENT

By signing below, the parties confirm their intent to proceed toward a definitive agreement based on the terms outlined above.

FOR THE BORROWER: Signature: __________________________ Printed Name: [Name] Title: [Title] Date: [Date]

FOR THE LENDER: Signature: __________________________ Printed Name: [Name] Title: [Title] Date: [Date]

STEP-BY-STEP EXECUTION GUIDE

1. Drafting Precision: Populate all bracketed fields with exact legal entity names as registered with the Secretary of State (or equivalent registry). Do not use "DBAs" unless explicitly required for the legal identity of the contract.
2. Authorization Verification: Ensure the signatory for the Borrower has the requisite "Board Resolution" or "Corporate Authority" to execute binding financial commitments on behalf of the entity.
3. Transmission: Deliver the signed document via a secure, trackable method (e.g., DocuSign with Audit Trail or Certified Mail). Retain a counter-signed copy for the corporate minute book.
4. Financial Disclosures: Ensure all attached financial schedules (P&L, Balance Sheets) are dated within 30 days of the LOI execution to maintain accurate underwriting baselines.