Document background
The Lender Letter of Intent is a crucial preliminary document in Hong Kong's lending landscape, typically issued during the initial stages of a financing transaction. It serves as a formal expression of the lender's interest and willingness to provide financing under specified terms and conditions. While not a binding commitment to lend, the Letter of Intent helps establish the framework for negotiation and subsequent documentation. It is commonly used when businesses seek significant financing for various purposes such as acquisitions, expansion, or working capital. The document reflects Hong Kong's sophisticated financial services sector and its common law legal system, incorporating local banking practices and regulatory requirements. The Letter of Intent typically precedes more detailed facility agreements and security documents, providing a roadmap for the transaction while allowing both parties to proceed with due diligence and detailed negotiations.
