Letter Of Moral Intent
Categories: Ethics/Morals
The world of performance socks is a competitive and cutthroat one. As the parent company of Socks for Feet, Inc., we know this all too well, which is why we fully support Socks for Feet’s effort to secure a nice big loan so they can invest some dollars in serious podiatry research before designing a new product line.
In fact, we’re so supportive that we send the lending bank a “letter of moral intent,” which states that we're willing and able to financially support Socks for Feet so they can pay back their loan according to its terms.
This isn’t an official financial guarantee, but it can go a long way toward making sure Socks for Feet can get—and pay back—the funds it needs. After all, they’ve got some big shoes to fill.
Related or Semi-related Video
Finance: What is a Comfort Letter?6 Views
Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]
that comforting okay okay comfort letter is a letter
this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]
attorney in one form or another who has done deep due diligence into a company
looked at myriad details and data and volume counts of plastic cubes in their
inventory and then they've looked at their distribution contracts
you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]
looked at their bank accounts both the onshore ones and the offshore ones that
you know they don't really like to talk about and then about 87 ish other things
that all those people look at and then they write a letter like an actual
letter which is usually given to the Board of Directors or an acquirer or
the investigating party whoever that is and that letter states that what the
company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]
thing to know so this letter well it just gives comfort to everyone
the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]