* The seller can also reply with a pro forma invoice. In fact a pro forma invoice can serve as quote and offer, becoming a more or less binding purchase order upon buyer acceptance and signing. Pro formas are used more in smaller FCL trades, and not in larger bulk trades.
When the buyer presents a Letter of Intent (LOI) instead of an Offer to Purchase, you do not have as strong of an offer and the percent of such offers that actually close will reduce. It is also difficult to get buyers to make an earnest money deposit on a Letter of Intent. The major problem is these agreements usually require that the seller cannot look at any other offers for a period of 30╉ days while the buyer is reviewing the records of the business. Many Letters of Intent will have a financing contingency. When the owner is offering substantial seller financing, there should be minimal contingencies for financing.