Free Letter of Intent (LOI) Template
The buyer's opening move in a commodity trade. This LOI draft signals real intent, unlocks the seller's Full Corporate Offer (FCO) and captures the banking coordinates a seller needs to verify capacity.
A Letter of Intent (LOI) is a non-binding but formal buyer statement issued at the start of a physical commodity negotiation. It tells the seller you are a real counterparty ready to move to contract, states target volumes and delivery cadence, and names the issuing bank and payment instrument (MT700 LC or SBLC).
This template is the format most sellers and mandates expect: buyer legal identity and authorised signatory, commodity and grade, trial and contract quantities, discharge port, preferred Incoterms, payment instrument, and a clear undertaking to proceed to FCO within a stated banking-day window.
Download the Word (DOCX) version to edit banking coordinates and quantities, or use the PDF as a reference sample.
What's inside
- Buyer-signed intent: opens the door for the seller's FCO.
- States banking coordinates so the seller can verify capacity.
- Names the discharge port and delivery cadence up front.
- Non-binding, but committing enough to filter out tyre-kickers.
Document preview
Frequently asked questions
Where can I download a free LOI template?
This page provides a free Letter of Intent template in Word (DOCX) and PDF. Sign in to download the editable DOCX; the PDF preview is public.
Is a Letter of Intent legally binding?
An LOI is generally non-binding on the commercial terms but usually binding on confidentiality, exclusivity and expenses clauses. It signals serious intent and unlocks the seller's Full Corporate Offer (FCO).
What should a commodity LOI include?
Buyer legal identity, product and grade, trial and contract quantities, delivery Incoterms and port, payment instrument (MT700 LC or SBLC), issuing bank coordinates, validity window and undertaking to proceed to FCO.
What is the difference between an LOI and an ICPO?
An LOI signals intent and is generally non-binding; an ICPO (Irrevocable Corporate Purchase Order) is a binding purchase order that triggers the seller to release procedures and the SPA draft.
Do I need bank coordinates on the LOI?
Yes for serious commodity trades. Sellers verify the buyer's issuing bank before releasing the FCO. Banking coordinates on the LOI reduce back-and-forth and speed up procedures.