letter of interest (LOI) definition

letter of interest (LOI)

Contracting: Written-response solicited from contractors or vendors through advertisements. It is often employed in pre-qualifying the respondents for specific services, based on their resources and experience, before sending a request for proposals (RFP).

Financing: Written communication issued by a lender in response to a request for funding a project or transaction. A LOI neither confirms a loan nor provides any specific terms under which the loan may be extended, but only states that the lender would consider that type of financing. See also commitment letter.

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