A more thorough explanation:

A letter of advice is a notice sent by the drawer to the drawee in commercial law. It informs the drawee that a draft has been sent by the drawer.

ABC Company sends a letter of advice to XYZ Company, informing them that a draft has been sent for payment. The letter of advice serves as a confirmation that the draft has been sent and provides the necessary information for the drawee to make the payment.

Another example could be a bank sending a letter of advice to a customer, informing them that a check has been deposited into their account. The letter of advice serves as a confirmation that the check has been received and deposited.

These examples illustrate how a letter of advice is used to provide confirmation and information to the recipient regarding a financial transaction.