What is a Letter of Intent? Definition, Examples & Importance

A letter of intent is a strategic way to connect with potential employers. It serves as an introduction, showcasing your professional background, key skills, and reasons for wanting to work for a particular company. The document can be used when you believe a company aligns with your career goals, even if no relevant positions are currently posted.

This article explores the difference between a letter of intent and cover letter, importance, and practical steps for crafting an effective LOI, complete with a template and example to guide you through the process. It also clarifies how such a letter can formally express interest and potentially lead to an agreement between two parties, such as a candidate and an employer.

Letter of intent vs. cover letter

While a letter of intent and a cover letter share similarities, they serve distinct purposes. Below is a comparison to clarify their differences:

Importance of letter of intent

The LOI is a strategic tool that can significantly enhance your job search. Here are five key reasons why it's important:

• Accessing the hidden job market: Many job opportunities are not advertised publicly. Companies often fill positions through referrals or direct inquiries to streamline recruitment. A letter of intent positions you as a candidate for these unadvertised roles, increasing your chances of landing a job that aligns with your career goals.
• Demonstrating initiative: Sending a letter of intent shows employers that you are proactive and genuinely interested in their organization. This initiative can make a strong impression, as it reflects a level of dedication beyond submitting standard applications.
• Building relationships: A LOI can serve as the first step in establishing a connection with a company. Even if no positions are available immediately, maintaining contact can lead to future opportunities as the company grows or new roles emerge.
• Standing out: A letter of intent helps you differentiate yourself from other candidates. By tailoring your letter to the company's mission and values, you demonstrate a deeper understanding and commitment, which can resonate with hiring managers.
• Flexibility in career goals: For job seekers open to various roles within a company, a LOI allows you to express interest in multiple areas rather than being limited to a specific job description. This flexibility can be particularly appealing to employers looking for versatile candidates.

Using tools, like the Personal Salary Report from Salary.com, gives you personalized, trusted market pay data based on your job and experience, helping you set expectations and negotiate confidently.

Examples of when to use a letter of intent

Here are some examples of when to use a letter of intent:

• After meeting a company representative at a job fair, you might send an LOI to formalize your interest.
• If you admire a company but no suitable positions are advertised, an LOI can introduce you to their hiring team.
• Some employers specifically request an LOI instead of a cover letter to gauge general interest, providing information about your intentions.
• If a contact suggests a company might have upcoming opportunities, an LOI can position you as a candidate, allowing you to negotiate potential roles upon further discussion.

Letter of intent template

A well-structured LOI is essential for making a strong impression. Below is a versatile template that can be adapted for job searches, business transactions, or graduate school applications, ensuring a formal approach:

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Recipient Name]
[Company/School Name]
[Address]
[City, State, ZIP Code]

Dear [Recipient Name],

I am writing to express my strong interest in [specific opportunity, e.g., joining your team at [Company Name] or pursuing a potential business transaction]. With my [relevant experience, skills, or qualifications], I am eager to contribute to [specific goals or values of the company/school].

[Paragraph 1: Introduce yourself and your background. Highlight relevant experience or skills that align with the recipient's needs.]

[Paragraph 2: Explain why you are interested in this particular company, school, or deal. Be specific about their mission, values, or recent achievements that resonate with you.]

[Paragraph 3 (for business LOI): Outline key terms, such as purchase price, due diligence timeline, or financing conditions. For job/school LOI: Discuss how you can contribute to their success.]

[Paragraph 4: Close with a call to action, such as requesting a meeting or further discussion. Express gratitude for their time and consideration.]

Sincerely,
[Your Full Name]

Letter of intent example

Below is a sample letter of intent

Alex Taylor
789 Oak Lane
Greenville, NY 12083
alex.taylor@email.com
(555) 987-6543
July 14, 2025

Ms. Rebecca Chen
Hiring Manager
Nexora Dynamics
123 Future Blvd
Tech Valley, NY 10456

Dear Ms. Chen,
I am writing to express my interest in any potential employment opportunities within Nexora Technology Group. I have over six years of experience in software engineering and a solid background in creating scalable systems, and I'm excited to use my skills and passion for technology to support your team.

In my most recent role at Digital Systems Inc., I led the backend development of a cloud-based platform that improved processing speed by 45%. This achievement not only enhanced my skills in Python and cloud architecture, but also strengthened my collaboration with designers, product managers, and QA teams.

I am particularly drawn to Nexora Technology Group for its focus on emerging technologies and commitment to forward-thinking development. I would be excited to contribute to your ongoing projects, especially those related to automation and smart platforms, where my background in machine learning can be valuable.

Enclosed is my resume, which outlines my experience and accomplishments in detail. I look forward to the opportunity to explore how I can add value to your organization. Please feel free to reach me at (555) 123-6543 or alex.taylor@email.com.

Thank you for considering my application. It would be a privilege to work with such a progressive and creative organization.

Sincerely,
Alex Taylor

How to write a letter of intent

Crafting an effective LOI requires clarity and focus. Follow these five steps to create a compelling letter:

1. Research the recipient: Understand the company, school, or business partner. Reference their mission, recent achievements, or values to show genuine interest. For example, mention a specific project or initiative, like a new product launch reported on their website.
2. State your purpose clearly: Begin with a concise statement of intent, such as applying for a job, proposing a business deal, or seeking graduate school admission.
3. Highlight relevant experience: Share your qualifications, skills, or past achievements that align with the recipient's needs. For business LOIs, outline key terms like purchase price or due diligence expectations.
4. Customize the content: Modify the letter to align with the unique circumstances. Avoid generic phrases and include details that make your LOI stand out, such as referencing a recent company milestone or your unique qualifications, to differentiate yourself from other candidates.
5. Close professionally: End with a call to action, such as requesting a meeting or further discussion. Express gratitude to the recipient for their time and convey eagerness about the opportunity.

A letter of intent is a useful and flexible document that can help in many professional situations, like applying for a job, graduate school, or a business opportunity. Its ability to convey interest, outline terms, and initiate discussions makes it invaluable. Using a clear structure, tailoring content, and maintaining a professional tone, you can craft an LOI that leaves a lasting impression.