The Lender Letter of Intent (LOI) is a crucial preliminary document in Australian financing transactions that bridges the gap between initial discussions and final loan documentation. It is typically used when a potential borrower has approached a lender for financing, and the parties have reached a preliminary understanding of key terms. The LOI outlines the proposed structure, key commercial terms, and conditions of the potential financing arrangement, while clearly stating which provisions are binding (usually confidentiality and exclusivity) and which are subject to further negotiation and due diligence. The document must comply with Australian banking and financial services regulations and serves as a roadmap for the transaction, though it generally does not constitute a binding commitment to lend. It's particularly useful in complex financing arrangements where detailed due diligence and documentation will be required.

1. Letterhead and Date: Lender's official letterhead and current date

2. Recipient Details: Full name and address of the potential borrower

3. Reference Line: Clear subject line identifying the proposed financing arrangement

4. Introduction: Opening paragraph identifying the parties and purpose of the letter

5. Proposed Loan Terms: Key financial terms including loan amount, interest rate, term, and purpose

6. Security and Collateral: Overview of required security or collateral arrangements

7. Key Conditions Precedent: Essential conditions that must be met before financing can proceed

8. Due Diligence Requirements: Outline of required documentation and verification processes

9. Fees and Expenses: Description of all applicable fees and cost responsibilities

10. Timeline: Proposed timeline for documentation and closing

11. Non-Binding Nature: Clear statement regarding the non-binding nature of the letter (except for specific binding terms)

12. Confidentiality: Statement regarding confidentiality of the terms and discussions

13. Expiration Date: Validity period of the letter of intent

14. Execution Block: Signature blocks for acknowledgment by both parties