The Letter of intent / LOI is a document that many refer to, but actually is poorly understood. Without proper understanding of the document you might find yourself making mistakes in your business that will cause you great embarrassment.Few traders and brokers realize that the Letter of Intent is not a standard document in International Trade.
In the business world letters of intent are often used to prove to potential investors that a potential deal or merger may take place. Without such proof, investors may not be so willing to loan out the much needed money. While letters of intent are common in the business world there are also other instances where letters of intent are used.