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How to Properly Write a Business Loan Request

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Have to submit a business loan request letter as part of your loan application? Not sure how to get started?

We don’t blame you. These kinds of letters aren’t as common as they used to be. While online lenders don’t usually ask for small-business loan requests, some traditional banks and credit unions still do. And if you apply for an SBA business loan (a loan backed by the US Small Business Administration), you’ll need a small-business loan request as part of your loan application package.

No matter which lender you’re applying with, this guide will help you write a strong business loan request letter―and to get the business loan you need.

How to write a business loan request letter

Start with the easy stuff
Write a brief summary
Add information about your business
Explain your financing needs
Discuss your repayment plan
Close the letter

1. Start with the easy stuff

Writing a loan request can feel overwhelming. After all, it’s not an everyday part of being a small-business owner. What do you say when applying for a bank loan? How do you write a business proposal for your loan application? What’s your lender even looking for in a business loan request letter?

That’s why we suggest starting your request writing process with the easy bits: formatting.

You’ll want to begin your business loan request with some pretty standardized formatting that includes your contact information, the date, your lender’s contact information, a subject line, and a greeting.

Typically, you’ll want to format the beginning of your small-business loan request roughly like this:

First and last name

Business’s name

Business’s phone number

Business’s address (this one is optional)

Lender name (or loan agent’s name and title, if you have one)

Contact information for your lender or loan agent

Subject line

Obviously you can simply plug in the relevant information for most of this. Easy peasy, right?

You’ll really only have to come up with your own subject line and greeting. But don’t overthink it. Something like this will work just fine for your subject line:

Re: [Your business’s name] business loan request for [loan amount]

Likewise, keep your greeting simple. “Dear [lender]” or “Dear [loan agent]” will do quite nicely.

Got all that? Then you’re ready to get into the actual loan request.

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2. Write a brief summary

Before you dive into the meat of your loan request, you should give a brief summary of your letter. Just write a short paragraph that says why you’re writing and what you want.

So you’ll probably want to include the following details:

Business name
Business industry
Desired loan amount
What you’ll use the loan for

No need to get fancy with this. You’re trying to condense the most important information into one or two sentences.

For example, your summary might look something like this:

I’m writing to request a [loan amount] loan for my small business in the [industry name] industry, [business name]. With this loan, [business name] would [describe your intended business loan use].

As you can see, you don’t need much detail here. You’re just giving the reader a quick overview of what’s to come.

And now that you’ve given them that preview, it’s time to get more in depth.

Remember, your lender isn’t here to grade your writing. Try to use good spelling, grammar, and punctuation―but don’t stress about crafting beautiful sentences.

3. Add information about your business

Your next section should add more detail about your business. You’ll want to include information like this:

Business’s legal name (if different than name used)
Business’s legal structure (LLC, partnership, S corp, sole proprietorship, etc.)
Business’s purpose
Business’s age (or date it began operating)
Annual revenue
Annual profit (if applicable)
Number of employees

Now, keep in mind that you’re not trying to give your reader an encyclopedic history of your business. Instead, you’re trying to show that you have a well-established business―one that’s solid enough to deserve a business loan. So focus on relevant details that show your business’s maturity.

You can keep this section as short as a few sentences or as long as a few (brief) paragraphs. Just make sure you leave plenty of room for the next two sections.

4. Explain your financing needs

After discussing your business, it’s time to explain why you need a bank loan.

That means you’ll want to offer some details about how you plan to use your business financing. For example, you can talk about the employees you plan to hire, the building you want to expand, or whatever else you intend to do with your term loan .

Take note, though, that you also need to explain why your loan request makes sense. Because your lender doesn’t really care that you want a loan―it cares whether or not it makes sense to lend to you. You need to convince your lender that you have a good plan for your loan―one that will make it easy to repay the money you borrow.

Try to answer questions like these as you write this section:

Why should your lender want to approve your loan application?
What happens to your business if you get your small-business loan?
What kind of growth will your business loan allow for?

Dig into your business plan and projections to find some good stats. Explain how hiring those additional employees will increase your revenue by a certain percentage or dollar amount. Break down how opening that add-on to your restaurant will allow you to seat a number of additional customers, and how much revenue you expect that to bring in.

The more specific you can get, the better. Because again, you’re trying to convince your lender that you’re borrowing as part of a thoughtful business plan ―not just because you want some cash.

And take your time with this part. In most cases, this section and the next one will form the meat of your business loan request letter.

As a rule, you should keep your business loan request letter to one page.

5. Discuss your repayment plan

By this point, your lender should understand what your business does and why a loan would help it grow. Now you need to prove to your lender that you can repay your small-business loan.

This doesn’t mean you have to show precise calculations breaking down your desired interest rate and monthly payment. (After all, your bank probably hasn’t even committed to a specific interest rate yet.)

Instead, talk about things like your business’s past finances, other existing debts, and any projections can you offer.

So if you have a profitable business, point that out, and discuss how that will free up cash flow to repay your loan. Offer summaries of profit-and-loss statements that show your business has been growing. Tell your lender how you’ll pay off that existing loan within a few months, so they don’t need to worry about it interfering with repayment of your new term loan.

Put simply, this is your chance to convince your lender of your creditworthiness. Especially if you have a slightly low credit score or some other concern, you want to use this section to show that you will absolutely repay your loan.

6. Close the letter

Finally, you can add a few finishing touches.

Usually you should close with a short paragraph or two that refers the reader to any attached documents (like financial statements) and asks them to review your loan application.

You may also want to include a sentence expressing willingness to answer any questions―or just saying you’re looking forward to hearing back.

Then end things with your signature, list any enclosed documents, and you’re done!

Well, sort of.

At this point, we strongly recommend you print off your business loan request letter and read it―out loud, if possible. This will help you catch any errors. Because no, your lender isn’t a writing teacher, but you still want to make a good impression.

Plus, if you make typos on something like your business name or desired loan amount, that inaccuracy could lead to confusion from your lender―slowing down your loan approval process.

Once you’ve proofread your loan request letter, you’re ready to submit it to your lender. With any luck, your thoughtful letter will help convince your lender to give you that loan you want.

Loan proposal letter template

So how do all those steps look when you put them together? Something like this:

First and last name

Business’s name

Business’s phone number

Business’s address (this one is optional)

Date

Lender name (or loan agent’s name and title, if you have one)

Contact information for your lender or loan agent

Subject line

Greeting

This first paragraph should summarize the rest of your letter. Keep it to just a couple sentences.

The next one to three paragraphs add more detail about your business. Include facts about its age, revenue, profit, employees, and other relevant information.

Then explain why you need financing and how you’ll use it to grow your business. This section can be a little longer (but remember your whole letter should fit on one page).

Next, talk about how your business will repay your loan. You may want to mention how financial documents show your business’s financial health, for example.

Finally, close with a short paragraph or two that list any enclosed documents and invite the lender to consider your loan application.

Printed name

List of enclosed financial documents

That’s not so hard, is it? With this basic business loan request letter template, you can easily write your own personalized business loan proposal.

The takeaway

So there you have it―that’s how to properly write a business loan request.

Get your formatting right, include a short summary, talk about your business, explain your loan needs, prove you can repay your loan, and close things off. (And don’t forget to proofread.)

We believe in you. You can write this thing.

And good luck getting your loan application approved!

Don’t just tell your lender you can repay your business loan―make sure you can with our business loan calculator .

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7 Tips on How to Write a Business Loan Request Letter
Learning Center
Small Business Loans

One of the toughest aspects of applying for a traditional bank or small business loan is the numerous hoops borrowers generally must jump through to qualify. From gathering all the proper documentation to ensuring your business has the necessary prerequisites to qualify, applying for a loan can be an arduous process.

The primary purpose of the lengthy application is to help the lender determine whether you’ll actually be able to repay the loan. While all the information you provide helps make your case, a well-written loan request may mean the difference between qualification and rejection. Below detailed tips on how to write a business loan request letter that presents your company in the best light possible.

What is a business loan request letter?

A business loan request letter is a written document that you provide with your loan application to help improve your chances of getting approved. Small business owners use it to report the amount of money they’d like to borrow. They also use it to detail how they’ll use the funds for their business and how they’ll repay the loan over time. All that information arrives alongside an explanation of why the bank should fund the business.

How to write a small business loan request letter

Your loan request letter is often the first thing your lender will look at after receiving your small business loan application. It’s how the lender will judge whether you’re eligible for a loan, so writing it correctly is highly important.

While there are many factors to consider when writing a business loan request letter, one thing to keep in mind is its length. Lenders typically use your letter to make snap judgments on whether to continue the review process. That generally means a longer letter may be one reason as to why your application might be rejected . The ideal loan request is usually a page long but packed with all the necessary details, as listed below.

1. Start with a header and a greeting

The top of your letter is reserved for basic identifying information and a subject line that includes your requested loan amount. Most loan request headers include personal details such as:

Your first and last name
The name of your business
Your business’s address
Your business’s phone number
The name of the lender or loan officer presiding over your case
That lender or loan officer’s contact information
A subject line that states you’re writing to request a loan and the amount you’re trying to borrow

Keeping a cordial tone throughout the letter can help leave a good impression on the lender. So beneath all the necessary information in the header, you should write a kind but formal greeting.

2. Write a brief summary

Start the body of your letter with a brief summary of why you’re writing it and the amount of money you’d like to borrow. Doing so typically means expanding on the information you provide in the header. Accordingly, you’ll want to include only a basic overview of your business while reiterating the amount you’d like to borrow and why.

While there’s more information here than in the header, you should still try and include only the most essential details. The summary section is meant to convince the loan agent to keep evaluating your application, so brevity is key.

3. Provide a basic overview of your business

There’s specific information that you should include as a part of the overview of your business, such as the following.

Your business’s legal name and any fictitious names for which you have a DBA
How your business is structured: Is it an S corporation or a partnership , or is it something else?
A description of the products or services your business provides
How long your business has been operating
Your current number of employees
Your business’s annual revenue (and profits, if applicable)

As with the sections above, keep this information concise so you don’t accidentally dissuade the loan agent from continuing to read. Additionally, make sure to cover the most unique aspects of your business so you can stand out among other applicants in your industry.

4. Add info on any partners, if applicable

It’s not just your business’s success that’s being evaluated. Lenders also put your personal finances and leadership abilities under the microscope to determine the likelihood of your business succeeding in the long term. So if you’re just one of many people who own your business, then it stands to reason that lenders will assess any co-owners as well. Add their info to the header alongside yours and include their finances in any revenue or debt calculations .

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5. explain how you plan to use your business loan funds.

While you may have briefly mentioned why you want the loan in previous sections, it’s here that you’ll go into detail. Explain how you’ll use the funds in as much detail as possible while remaining clear and concise. This section should demonstrate that you know what your business needs to increase its profitability. And that you have a plan in place to get there.

Remember that the lender's main goal during this process is to ascertain whether you’ll actually repay the loan. It doesn’t necessarily matter how you use the money as long as you back up your actions with a solid business plan.

To that end, try to be specific when stating the purpose of your new funds. A financial institution won’t approve a loan that simply lists wanting more working capital as the reason for their loan request. Some more acceptable examples of reasons for wanting additional funds include, but aren’t limited to, the below.

Purchasing additional commercial property
Funding more expansive marketing campaigns
Buying out shareholders
Hiring more experienced employees
Purchasing newer equipment
Moving your business operations to a new location

Note that this isn’t an exhaustive list of acceptable reasons to seek a small business loan. If you adequately explain any way that the funds will help your business grow over time, your application generally has a better chance of qualifying .

6. Demonstrate that you can repay the loan

Staying in line with the lender's desire to minimize financial risk, you must demonstrate your business’ ability to repay the loan. Essentially, this means proving that your company is financially healthy enough to make long-term monthly payments on the principal loan amount plus interest.

The financial information you provide to fill out the rest of the loan application will go a long way here, but further detail is typically necessary. For example, you could include a cash flow statement to show that your business is profitable. Or you could highlight your credit history to show that you’ve reliably paid current and past debts.

7. Add your concluding elements

Make sure to keep a cordial tone once you’ve reached the end of the business loan request letter as you include the following information.

A reference to your attached financial statements (usually about a paragraph long)
A final paragraph that formally requests that the lender review your application. You should also indicate that you look forward to speaking with them in the near future.
A signature
A list of all the documents you’ve included to complete your loan application

Examples of a small business loan request letter

Below are two examples of a small business loan request letter that you may use as templates.

Example small business loan request letter #1

Your First and Last Name [And the name of any company co-owners] Your Business’s address City, State, Zip Code

Name of the Loan Agent Loan Agent’s Title Name of the Agent’s Financial Institution Financial Institution’s address City, State, Zip Code

Subject: Small business loan request for [Amount]

Dear [Lender/Loan Agent’s Name],

I am writing this letter to request a small business loan of [Amount] to [Purpose of the loan]. My business, [Name of Business], is part of the [Type] industry and has proven to be a successful venture within its market.

Opening its doors in [Date] with [Number] of employees, [Business Name] has shown reliable, remarkable financial growth over the past [Number] of years. Structured as a [Legal structure of your business], [Business name] now employs [Number] individuals, with our annual sales revenue reaching [Number] last year. In addition, we’ve reached net profits of [Number, Include if your business is profitable], maintaining strong economic growth in the [Number] years since opening.

[Use this section to explain the reason for your loan request, for example]: We’ve observed an increasing number of customers coming into our storefront coupled with increased demand for [Your business’s product or service]. We wish to further capitalize on our success by expanding our current floor space, allowing more customers to purchase our [Product or service] at once. As a result, we request funding to afford [Name what you need] and continue growing our business with [Summary of your business plan].

The potential financial growth of our business is immediate, allowing us to fit repayments plus interest into our monthly budget easily. But we cannot currently produce a lump sum large enough to afford [Name what you need] in a reasonable timeframe. A loan in the amount of [Number] enables us to purchase [Name what you need] to capitalize on this growth opportunity and begin generating new revenue as quickly as possible.

We feel that [Business name] is of minimal financial risk to your bank due to our strong credit score of [Number] and positive finances. Attached to this application are our annual profit and loss statement and our most recent cash flow statement to help corroborate our excellent economic position.

Please take a moment to review this request letter and the accompanying financial documents. If you feel our company is a good match for your bank, we would love to hear from you.

Your Signature Your Printed Name

List of Enclosures: Business plan, cash flow statement, and P&L statement [plus any other documents that are part of the loan application]

Example small business loan request letter #2

Name of the Loan Agent Name of the Agent’s Financial Institution Financial Institution’s address City, State, Zip Code

Dear [Lender/Loan Agent’s name],

This letter is meant to request a loan of [Amount] for the express purpose of growing my business, [Business name]. It’s a [Type of business] venture that’s proven itself a successful provider of [Main product or service] since we opened our doors in [Date]. As an established name within our industry, and with a continually growing customer base, we would like additional funding to capitalize on our success by expanding our operation over the next [Time frame].

[Business name] is a [State your type of business entity ] catering towards [Type of clientele]. When we first opened our doors, we employed [Number] people, and in the [Number of years] since, that number has swelled to [Current number of employees]. Furthermore, our management team comprises [Describe each partner and co-owner] who ably [Detail each company leader's responsibilities] while managing employees.

With our current business strategies and team makeup, we’ve reached an annual sales revenue of [Number] and a net profit of [Number – only include if your business is profitable]. We plan to capitalize on our successes with new product initiatives that capture a wider range of clientele within our target market and any overlapping industries.

According to our business plan, any funding we receive would go towards [Explain what your company will use the money for along with any secondary goals]. We believe that our business will present minimal financial risk to your bank, with our credit history demonstrating our penchant for repaying debts on time. Additionally, after carefully assembling [Business name]’s most recent cash flow statement, we believe that our current revenue can easily cover an extra monthly fee plus interest.

In addition, our overhead is very flexible due to the operation of our business accommodating contract and freelance employees, lessening financial strain. This allows us to reliably remain on top of our debts even during tough economic times or if the funding provides fewer profits than anticipated.

We would like to take advantage of this growth opportunity as soon as possible and would appreciate it if you could take the time to review our request letter. Enclosed with the application are several financial documents that help corroborate [Business name]’s continued economic health. We’re more than happy to provide any other information you might need to decide on our loan.

When do you need a business loan request letter?

Generally, business loan request letters are only necessary when you apply for the below two types of loans.

Conventional bank term loans. Applying for a bank term loan requires you to meet that lender's particular requirements for eligibility. A loan letter is often one of those requirements. Banks are notoriously risk-averse, and your letter may help to show them that your business is financially stable enough to repay the loan.
SBA loans. Applying for an SBA loan requires you to meet prerequisites that are just as strict as for conventional bank loans, if not more so. Most SBA loan guidelines recommend including a loan request or similar cover letter-like document to support the financial information in your application.

While the above loans tend to require a loan request letter, other business financing options typically don’t. Such options include:

Loans from an alternative lender. These loans’ qualification criteria are often less strict than with traditional financial institutions. Some alternative lenders may only request your bank statements when you apply.
Equipment financing. Typically, with equipment financing, there’s less of a need to prove that your business is profitable. That’s because the equipment you purchase serves as collateral for the loan. If you can’t repay the loan, the lender may easily recoup their losses.
Business lines of credit. While the eligibility criteria for a business line of credit are similar to traditional banks in some respects, it doesn’t require as much documentation. Generally, getting one will only require your most recent bank or financial statement, not a business loan request letter.

Let SmartBiz® make the loan application process easier

While business loan request letters aren’t always required, they can be time-consuming when they are necessary. And if you’re applying for many loans, you might not have the time to write a loan request for every one. While writing from a template could work, knowing whether you qualify for a loan before you enter the bank may save you even more time. That’s where SmartBiz comes in handy. SmartBiz displays lenders in your area and compares their loan plans with your finances. Check now which loans you prequalify for * before you’ve even picked up an application.

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*We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.

The SmartBiz® Small Business Blog and other related communications from SmartBiz Loans® are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. Please consult legal and financial processionals for further information.

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How to Write a Loan Request Letter to Get Your Small Business Funded

If you want to get business financing from your bank or the Small Business Administration (SBA), you’ll need to know how to write a loan request letter.

Indeed, your bank’s underwriter will look for your business loan request letter when reviewing your application. The SBA expects you to have one, too.

A well-written letter requesting a loan can make the difference between having your application approved and it getting turned down.

Here’s what you need to know about how to write a loan letter, including when you need one, what you’ll need before writing one, what format you should use, examples to review and a loan request letter template to write your own.

What Is a Business Loan Request Letter?

A business loan request letter is correspondence a borrower writes and submits to a bank as part of the loan-application process.

Business loan request letters include the following:

Loan amount
Planned use of funds
Explanation of why you should be funded
Details about how you plan to repay your loan

When You Need a Loan Request Letter

There are 2 main financing situations when loan request letters are called for:

When you’re requesting a loan from a conventional bank lender and you want to demonstrate that your business is growing and financially viable
When you’re applying for a loan from the SBA , which recommends you begin your loan proposal with a cover letter or executive summary

If either situation applies to you, you should know how to write a loan letter.

There are situations when you don’t necessarily need a loan letter, including:

You’re requesting a term loan online from an alternative lender, who may only require recent bank statements
You’re seeking equipment financing , in which case the equipment itself will serve as collateral
You’re requesting a business line of credit , which only may require recent financial statements or business bank statements

Prerequisites for Writing Loan Request Letters

While a loan request letter may be needed for bank and SBA loans , it won’t be enough for approval unless it’s supported by a sound credit situation and solid financial planning. For your request to be persuasive to lenders, you should do 2 things before preparing your business request letter and loan application package:

Check your personal and business credit scores and take any steps you can to improve them
Prepare the business financial statements you’ll need for your loan package

Your personal and business credit scores and business financial statements will help lenders assess whether you’re a good financial risk and will lend weight to your loan request letter. Business financials should be submitted with your loan application along with your cover letter.

Essential financial statements you will need include:

Profit-and-loss statement (also called an income statement)
Balance statement
Cash-flow statement

Business Loan Request Letter Format

When you write your loan request letter, it’s recommended to keep it to 1 page while including the following key elements:

Heading and Greeting

The very top of your letter for a loan application should include contact information, a subject line as a header and a greeting as follows:

Your name and contact information
The date of your letter
The name, title and contact information of your loan agent
A subject line stating that you’re writing about a loan and specifying the dollar amount you’re requesting

Summary of Your Small Business Loan Request Letter

Start by briefly stating the purpose of your letter and the amount you’re asking to borrow.

Basic Information About Your Business

This should include:

Your company’s legal name
Your company’s legal structure ( sole proprietorship , partnership, limited liability company, S corporation, etc.)
A brief description of what your business does
How many years you’ve been in business
How many people you employ
Your annual revenue and profit

Explanation of the Purpose of Your Loan

Tell your lender how you plan to use the loan. Be as specific as possible, citing numbers to quantify your goals. For instance, instead of saying you plan to use the loan for advertising, specify what types of advertising you’ll use, how much each will cost and the percentage of new customers or increased revenue you hope to gain.

Summarize Your Ability to Repay the Loan

Touch on your credit history and highlight key data from your financial statements that reflect your ability to repay your loan, including:

Summaries of recent profit-and-loss or balance statements demonstrating that your business is financially healthy and growing
Schedules for repaying any other business debts you already owe
Cash-flow projections that indicate when you’ll be able to budget repayments for your loan’s principal and interest

Concluding Elements

The end of your letter should include:

A paragraph referring to your attached financial statements
A concluding paragraph asking the loan officer to review your package and expressing your anticipation of speaking with them soon
Your signature
A list of enclosures, including your financial statements and any other documents that are required for your loan application. You may also need to provide your business partners’ financials, including for SBA-backed loans .

Don’t want to write a loan request letter? We’ve got you covered.

Loan request letter templates and samples.

Here are loan request letter samples and templates you can use to create your own letter.

Sample Request Letter for a Working Capital Loan to Support Expansion

ABC Builders

123 Park Lane

Miami, FL 33145

Jan. 1, 2020

Senior Loan Officer

987 Spring Road

Philadelphia, PA 19115

Re: Small business loan request for $100,000

To Mr. Doe,

ABC Builders is a successful business that is well established in the building and renovation industry. We began operation with 3 employees in January 2010 as a small company offering renovation services to local businesses and homeowners. We now have 20 employees. We advertise on our website, ABCBuilders.com, and market on social media channels as well as at home building expos.

Last year, our annual sales totaled $3.5 million. In the first year of business, we earned a net profit of $1 million. Additionally, we have maintained a steady balance in the past 10 years.

Because of increasing interest from prospective clients in neighboring cities, we have decided to open a second location. The loan we are requesting is for this additional location, which we anticipate will increase revenue by $300,000 in the first quarter following opening.

Startup costs can be costly, and we require funding to purchase supplies and equipment. However, we anticipate strong sales for the new branch and have immediate work opportunities, which will contribute to our loan repayments.

The loan of $100,000 we are requesting will provide us with the funding we need to help successfully open our second location. I have attached the contracts we have in the new location, pending equipment availability and ability to complete the project as well as our business plan with a breakdown of costs and detailed market analysis.

Thank you for reviewing this letter and the accompanying financial documents. I look forward to hearing from you at your convenience.

Jack Smith [signature]

Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement

Sample Loan Request Letter to Fund the Salary of a New Hire

Chief Executive Officer

Dear Mr. Smith:

I am writing this letter to request a small business loan in the amount of $100,000 for the purpose of hiring additional staff.

My business, ABC, Inc., is a growing company that serves clients in the food-service industry. You can follow our success online at www.ABCInc.com.

ABC, a corporation, began operation in January 2016 with 5 workers and 1 location. We have grown consistently in the past 4 years. We now employ 15 workers and have expanded to 2 locations.

Last year, our annual sales revenue was $2.8 million and we generated a net profit of $975,000. We have maintained our cash flow consistently over the past 2 years and have generated a net profit each year we’ve been in business.

To promote our continued growth, we plan to hire a full-time manager this year to oversee our business operations. We are requesting working capital funding to continue our expansion efforts and cover the cost of the new manager’s salary and benefits. In addition, in an effort to retain top talent, we plan to offer an enticing relocation package and signing bonus. This new hire will streamline operations and lead to efficiencies totaling $150,000.

We would like to pursue this endeavor in the second quarter of 2020, but this venture will require more funding than our current cash flow can sustain. Although we lack a lump sum large enough to cover this additional expense, our budget can allow for monthly payments over time given sufficient financing.

A loan in the amount of $100,000 will enable us to acquire the right talent to facilitate our expansion. Our projections, which are enclosed, indicate that increased efficiency and sales will generate enough increased revenue to repay this loan by 2023.

Attached, please find our business plan and our most recent financial statements for your review. Based on these strong financials and our business credit score of 90, we are confident that you will find us a safe credit risk.

Thank you for reviewing this request letter and the accompanying financial documents. I look forward to hearing from you at your convenience.

Jane Doe [signature]

Jane Doe, Chief Executive

Enclosures: Business plan , profit-and-loss statement, balance statement, cash-flow statement

Additionally, you can use the following example to create your own term loan request letter format.

Loan Request Letter Template

[Your name]

[Your title]

[Your business name]

[Your business address]

[Your city], [Your state] [Your ZIP code]

[Loan officer’s name]

[Loan officer’s title]

[Loan officer’s company]

[Loan officer’s address]

[Loan officer’s city], [Loan officer’s state] [Loan officer’s ZIP code]

Re: Small business loan request for $[amount]

Dear [loan officer’s name]:

I am writing this letter to request a small business loan in the amount of $[amount] for the purpose of [summarize the purpose of the loan here]. My business, [your business name], is a growing company that serves clients in the [type of business] industry. You can see our success online at [list your website and any social media profiles you want to showcase].

[Your business name], a [business legal structure], began operation in [date you began operation] with [number] workers [if applicable], and has grown consistently over the past [number] years. We now employ [number] workers [if applicable].

Last year, our annual sales revenue was $[amount], with a net profit of $[amount]. [If you are not profitable, you can omit mention of net profit here.] We have maintained our cash flow consistently over the past [number] years, and have generated an annual net profit each year we’ve been in business [if applicable].

[Explain the reason for the loan request here. For example: To promote our continued growth, we plan to hire a full-time administrative assistant and a sales representative this year. We are requesting funding to cover the cost of their salaries and benefits. (Substitute appropriate language applicable to your business plan.)]

We would like to pursue this next quarter [specify time frame], but this will require more funding than our current cash flow can sustain. Although we lack a lump sum large enough to cover this additional expense, our budget can easily cover monthly payments over time given sufficient financing. A loan in the amount of $[amount] will enable us to cover labor costs for our two new employees. Our projections indicate that increased efficiency and sales will generate enough increased revenue to repay this amount by [date].

Attached, please find our business plan and our most recent financial statements for your review. Based on these strong financials and our business credit score of [score], we are confident that you will find us a safe credit risk.

[Your signature]

[Your name printed]

Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement [list other documents included.]

You also can find loan request letter templates and sample letters online.

Here are a few websites offering examples of business loan application letters you can refer to when writing your own loan request letter:

If you’re wondering how to write a letter to a bank manager for a loan, check out RequestLetters.com .
LiveCareer offers a loan application sample letter as well.
Refer to these loan request samples , too.

Mastering the Loan Request Letter Format

A loan request letter is essential if you’re applying for a loan from a conventional lender or the SBA. Add weight to your request by optimizing your personal and business credit scores and including your business financial statements.

Follow the proper format when writing your letter, including a header and greeting, a summary of your request, basic information about your business, an explanation of the purpose of your loan, a summary of your ability to repay your loan and, finally, appropriate concluding elements. Use a template to make writing your loan request letter a little easier.

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Tips and Tricks of Writing a Business Loan Request Letter

By: First Union

business-strategy resources

Tips and Tricks of Writing a Business Loan Request Letter

In applying for a commercial loan from a bank or from the SBA, odds are you're going to have to present a cover letter. This is basically your loan request letter. The underwriter will look at this among the first pieces of documentation they examine in terms of your application, so you want to be sure that it is well crafted, does what it needs to do and makes a terrific first impression.

So how do you write such a loan request letter, and what components should go into it? In this article, we cover the details of the said letter and offer a template that you might be able to use for your own purposes.

When to Draft a Loan Request Letter

Most companies aren't aware that they do in fact need a loan request letter. There are essentially two instances in which you will. 1. When asking for a loan from a traditional bank and 2. When applying through the SBA program, they will almost always request such a cover letter.

You do not however always need to include a loan request letter with your application. For instance, if you're applying for a loan through an alternative lender or if you are looking solely for equipment financing then you will not need this letter. Also, in applying for a business line of credit this probably will not be required.

Preparing to Write a Loan Request Letter

The letter, of course, needs to be well written and paint a detailed picture of your business and its financial needs. Other than that, you want to back it with solid facts pertaining to the company. Make sure that you have on hand info regarding your credit score. If you see any discrepancies address them immediately. And have all of your business financial statements accessible so that you can reference these if need be.

The credit score gives the lender insight into what type of credit risk you might be. If you are a good risk, the odds of being approved increase greatly. And your financials show the lender what your company is all about beyond just a score. The financial statement should include profit and loss statement, balance sheet, and a cash flow statement as well.

How a Loan Request Letter Should be Formatted

As with any formal letter, there is a certain formula as far as formatting that you definitely want to follow.

Header and Greeting:

At the top of your letter you will need to include the following:

Name and contact information
Name, title and contact information of your loan agent
A subject line

Summary of Your Request

You want to begin the letter by stating the purpose of writing it and why your business needs to borrow money.

Basic Business Information

This includes:

Company name
Legal structure (sole proprietorship, partnership, LLC, S-corporation, etc./)
What you do
Years in business
Annual revenue

Explanation

The lender is going to need to know the purpose behind why you need the loan in the first place. Explain what you'll use the cash for. You want specifics here and you want to offer a brief overview of how you plan to attain your goals once you do have funds in hand.

How Will You Repay Your Loan

This is critical. The bank, of course, wants to be assured that you will not be delinquent or default in any way. You can provide for instance:

A summary showing business growth over the past year.
A potential repayment schedule.
Your cash flow projections.

The end of your letter needs to have:

Reference to the attached documentation
Concluding paragraph asking them to review your application and thank them for their time.
Your signature

Sample Template

[NAME] [TITLE] [BUSINESS NAME] [BUSINESS ADDRESS] [CITY], [STATE] [ZIP CODE] [DATE] [LOAN OFFICER'S NAME] [TITLE] [COMPANY] [ADDRESS] Re: Small business loan request for $[AMOUNT] Dear [LOAN OFFICER'S NAME]: The reason for my letter is to request a small business loan for $[AMOUNT]. The loan will be used for the purpose of [PURPOSE HERE]. [BUSINESS NAME] represents a growing company that actively and proudly serves clients in the [INDUSTRY]. If you visit our website you can learn more about what we do and see how successful we've become. [BUSINESS NAME], a [LEGAL STRUCTURE], began in [DATE] with [NUMBER] workers. Over the past [NUMBER OF YEARS] we have grown consistently and now employ [NUMBER] workers. With an annual sales revenue of $[NUMBER] and a net profit of $[NUMBER], we've been able to maintain positive cash flow and are confident that we will continue to do in the future. The reason for the loan will be not only to foster continued growth but also to hire on a full-time bookkeeper and sales representative. The amount requested is the predicted cost of salary plus benefits for these new roles. Because of our positive cash flow situation and given our monthly budget, we have ample funds to cover monthly repayment. Our projections suggest that by adding these two new positions we will, in fact, generate more revenue and thus be more than capable of repaying the loan in full within [NUMBER OF YEARS]. Attached, is our most recent financial statements, as well as our business credit score report. We are confident that you will find us a safe credit risk. Thank you for your time and consideration. I look forward to working with you. Very truly yours, [SIGNATURE] [NAME PRINTED]

The Importance of the Loan Request Letter

Again, when working with a traditional lender or the SBA, this letter will be of significance. This is your chance to "speak" to them via the application packet and really make your case. The above template is just an example. Of course, you want to inject your own story and your own personality into it. Just always make sure to follow the proper formatting guidelines. There are some trial and error involved as far as creating your perfect letter draft, but if you include all pertinent details and use a professional tone, you will get there.

At First Union, we have worked with many small businesses regarding loans. We offer loans from short term loans to lines of credit . To find out how we can help you, call today !

Becky: Hi! Let's find the best loan option for you

[email protected]
Call (866) 670-7483

Mid aged business man in suit holding reading business loan letter

Business Loans
Posted on December 12, 2022
Kortney Murray

A business loan application process often requires numerous documents, one of which is a request letter. This letter is a significant part of your application as it is written to request financial assistance from the financial institution.

In most loan application cases, the success of your application process hinges on your ability to craft a convincing and professional business loan request letter. However, to do this, you need to know what the letter entails, the necessary information to include, and, of course, how to write one.

To help you with your application process, below we have compiled everything you need to know about writing a request letter for a business loan.

Loan document and agreement with pen for signing loan request letter

What Is A Business Loan Request Letter?

During your loan application process, whether you are getting a business loan for your beauty salon or trucking company, your lender or financial institution will request information from you. This information is to help the lender or institution trust you enough to know that you will be able to pay back their loan.

Many times, the request for this information comes in the form of a business loan request letter. A request letter is a formal letter or a document that is written to request anything from an official. It can be seen as a way of asking for a favor from officials.

In this case, a business loan request letter is a letter to the bank or lending institution that supports your business loan request. During the loan request review process, the bank underwriter will pay attention to the content of your business loan request letter to see if you deserve to get your loan approved.

In essence, your loan request letter is the difference between your loan being approved or refused. A loan request letter usually commits elements such as the loan amount requested, detailed planned use of money if disbursed, reasons why you think you should receive the funds, and a detailed description of how you plan to repay the loan.

The loan request letter is usually requested when asking for financial help in the form of a loan. This can be when you’re applying for a loan from a conventional financial institution or bank lender, or when you’re requesting a loan from the SBA ( Small Business Administration ).

In both cases, you are trying to demonstrate to the lender that your business can repay the borrowed amount, and you have a plan for using the loan when disbursed. Although loan request letters are usually a part of loan application processes, they do not necessarily need to be a part of every loan application process.

Some situations require loan letters, and some can do without them. Some situations that do not require loan request letters are:

Situations where you require a loan from specific lenders whose only concerns are your bank statement
Situations where you request a business line of credit and the only requirements are recent business financial statements
Situations where you request equipment financing and the equipment will be the collateral you need.

Regardless, writing a request letter for a business loan is an essential step to securing your loan. However, simply writing a letter is not enough. It is crucial to write an excellently detailed loan request letter that passes your message across quickly to the money lender.

What You Need To Know About Writing A Loan Request Letter

Many elements go into writing a loan request letter. These request letters are a form of well-documented proposal that accompanies other loan application documents, which is why they should convey specific information. When writing a loan request letter, your letter must have specific information. This information includes:

1. Basic Business Information

Money lenders and financial institutions do not give out loans to businesses or individuals who walk up their doorsteps. They do not accept and disburse loans without knowing who the borrower is. A detailed business loan request letter should begin with a proper introduction that communicates the borrower’s basic personal and business details.

It is a great way to not only break the ice but also get the lender to be familiar with you and know you’re genuine. The basic business information should include the following:

Your address
Your business name
Your business address
Name of the money lender or loan agent
Contact information of the loan agent
Requested loan amount
Current business project
Current annual revenue
Turnover of the previous financial year
Current number of employees

These details tell the institution all they need to know about you, your financial needs, and your business. Needless to say, all information given should be legal and up-to-date.

2. Purpose Of The Loan

What is the loan for? How does the lender know you will use the loan for the right things? After offering the basic business information, it is essential to the money lender your plan for the loan when approved. Approving a loan to a business (especially small businesses) is a considerable risk for many financial institutions.

It would be best if you showed the institution that you plan to use the loan for the right things. When talking about the purpose of the loan, briefly tell the lender how you plan to use the business loan. Be concise and professional, yet offer enough details for total insight.

Be persuasive enough to help the lender see your vision and show them you have what it takes to use the loan properly.

3. Provide Repayment Assurance

Before money lenders approve business loss, they want to ensure they receive their money and interest at the due date. Without proper assurance, they will be skeptical and might refuse to approve the loan for disbursement. After drawing out the purpose of the loan you are requesting, it is essential to detail how you mean to repay the money on or before the duration of repayment.

What are your plans to make back the money? How soon can you make money? Are there any risks that are expected? Still being persuasive yet professional, describe how you expect to pay the loan back. However, don’t just draw out a plan using words. Offer evidence to support your plan.

This will build your credibility and increase your chances of the loan being approved. Your evidence can include a business plan, personal finance and credit history (do you have bad credit? Here is all you need to know about getting a business loan with bad credit ), past business financial decisions and results, and any other relevant financial details.

As with any other letter, it is essential to close your business loan request letter. Your closing is your last chance in the letter to persuade the money lender to approve your application and agree on specific loan terms if possible. In the closing part, you can convey what approving the loan will mean to your business without sounding desperate.

Remain professional yet courteous at this point in your letter. The closing part of your business loan request letter is also an excellent opportunity to negotiate for specific terms, such as a certain interest rate or a longer repayment term. However, don’t just tender your requests.

Back them up with compelling reasons why the lender should take on these terms.

Laptop, small business and senior woman writing loan request letter

How To Write A Request Letter For A Business Loan

Now that you are familiar with the essential elements of a professional business loan request letter, it is essential to know how to write a convincing and successful request letter. Because your request letter plays an integral role in the success of your business loan application process, knowing the best way to write one is vital to your ability to win a loan.

Business loan request letters are usually about one page in length. However, they should be written professionally and in great detail.

1. Heading And Greeting

When writing a letter, it is a formality to have the heading and greeting first. The loan request letter is not left out. At the top of your business loan application letter, you are expected to leave a formal greeting and belief introduction of yourself. This is where the basic business information comes into play.

Begin by writing your name and contact information
Date the letter correctly (when the letter was written)
Include the name, title, and other important contact information of your loan agent
Include a subject line that states you are applying for a loan and the amount of loan you are applying for
Include a formal greeting.

Below is an example of a format for the heading and greeting section of your letter:

[Company/Business Name]

[Business Address]

[Lender Name]

[Lender Title]

[Lender Institution Name]

[Subject]:

Dear Mr/Miss/Ms./Mrs [Name],

At a glance, the heading and creating part of your letter will tell the lender what they need to know about your business and the type of loan you need.

2. Summary of Your Business Loan Request Letter

What do you need the loan for? The second step and the second element when writing a business loan request letter is to briefly tell your money lender what the purpose of your letter is, the type of loan you need, and the amount you want to borrow. The summary of your business loan request letter is usually only a few sentences short.

The length may vary from letter to letter as every request letter is unique. Regardless, it should be nothing more than a summary.

For example:

I am writing this to request a [kind of loan] loan in the amount of [amount] for the purpose of [purpose].

This is straight to the point but immediately tells the lender what you need and why.

3. Basic Information About Your Business

Following the summary of your business loan request letter, it is essential to tell your lender all they need to know about your business. To do this, you will provide basic information about your company. Although lenders want to know as much as they can about you and your business, they do not have the time to read pages upon pages of all information about your company.

They spend so much time processing other loan applications that a long introduction can be a big turn-off. So, instead of an entire file on your business history, write out the following:

Your business’s recognized, registered, and legal name
Your business’s legal structure (is it a sole-proprietorship company , partnership, or limited liability company?)
Years of operation or how many years you have been in business for
A concise description about what your business does or operates in
Your company’s annual revenue and profit
Number of employees

4. Description Of The Purpose Of The Loan

After offering the basic introductions, you must tell your lender why you need the loan. In this section, explain to your lender how you plan on using the loan when it is approved. Give them a great but brief insight on the plan and show them you have mapped out the use of the finances every step of the way.

For example, don’t just say you need to buy more stock. Instead, state what stock(s) you need, how much they are, how much you plan to re-sell, and how much revenue you plan to make back from this.

5. Show Your Ability to Repay the Loan

Show the lenders that you are more than capable of repaying the loan given by including several documents that show your current financial ability. Highlight your credit history and present financial disposition using financial statements such as:

Summaries of up-to-date profit-and-loss or balance statements. This will show the lenders that your business is growing
Schedules to show repayment plan for other outstanding debt that your company might owe to other lenders
Future cash-flow projections . This will show your budget for the repayment terms and your ability to pay back.

6. Concluding Elements

As with any other kind of letter, you need to end your request letter with a concluding part. This concluding part should include several elements, such as:

A final paragraph that refers the lender back to your attached documents and financial statement
A paragraph persuading the lender to review your package
A sentence showing the lender that you anticipate speaking to them soon
Your signature
A list of all included documents.

Sample Of Business Loan Request Letter

ABC Crescent Street

Miami, FL 12345

Jan. 1, 2022

Jack Stephen

Senior Loan Officer

678 Spring Road

Florida, FL 67890

Re: Small business loan request for $350,000

Dear Mr. Stephen,

I am writing this to request a small business loan of [input loan type] of $150,000 for the purpose of [input your purpose of the loan]. 123 Movers is a successful business that is well-established in the transportation and shipping industry. Our success is recounted on our official website [input website URL].

123 Movers started operation in April 2018 in one location with just [input number] workers and [input number] trucks. Serving local and international clients, we have grown consistently over three years and now have over [input number] with [input number] of trucks in our services.

Last year, our annual revenue totaled $1.2 million—[input more information about the growth of the business]. To promote our growth, increase efficiency, and improve the quality of our services, we plan to hire more staff and expand into new market sectors.

We request a [input loan type] to continue our expansion efforts and supplement our growth as a business. [Input more reasons/purpose for the loan application]. A loan in the sum of $350,000 will enable us to [state how the loan will help your business in this paragraph].

Attached below, please find our recent financial statements and our business plan for your review. I have also attached other necessary documents [state documents] to highlight how strong our financial disposition is. With a credit score of [input credit score], we are confident in our ability to adhere to the necessary loan terms.

Thank you for reviewing our letter and the attached financial documents. I look forward to a favorable response from you at your convenience.

John Doe [signature]

John Doe, Owner

123 Movers.

Perfecting The Art Of Writing Business Loan Request Letters

Writing request letters for business loans can be an intimidating process, especially if you have no practice doing so.

However, all you need is a few trials, and you will undoubtedly master the art of writing business loan request letters like a pro. Request loan letters are essential in many loan application processes, which is exactly why you need to put your best foot forward while writing.

Optimize your letter by including the necessary documents, highlighting your best assets, and following the proper format mentioned above. Include a header and greeting, a concise description of your request, your business’s basic information, a description of the purpose of your loan application, your ability to repay the loan, and a proper concluding element.

Although mastering the art of writing business loan request letters is one of the many steps in making sound financial decisions for your business, the first step begins with finding a financial company dedicated to offering the solutions you need. With relationships with over 150 different programs and an aim to maximize your business’s growth, we at Coastal Kapital offer innovative financial solutions to business owners with all credit types.

From equipment leasing to merchant processing, collateral asset and real estate-backed funding, we have all you need to grow your business. Contact us at 866-670-7483 to discuss your financial options!

How to Write a Loan Application Letter

Table of Contents

Sometimes, taking out a loan can become inevitable. Whether dealing with piled-up medical bills or a financial emergency, it’s common to turn to fast and convenient borrowing options. According to statistics, advances and loans accounted for more than 60% of bank assets in the European Union in 2021.

If you wish to take out a loan, you’ll have to fill out a loan application or request letter that details what you need the money for and how you’ll use it. The best way to appeal to a lender is by using a convincing tone and showcasing a clear plan for the money. Keep reading as we look at ways you can achieve this and ensure that your loan is granted successfully.

What is a Loan Application Letter?

A loan application letter is a typed or handwritten letter provided to your lender, helping them decide whether to approve your loan request. This letter is written when the borrower is seeking financial assistance from a lender to pay off some bills or other expenses.

When Do You Need One?

You might require a loan application letter in the following financing situations:

When you wish to borrow money from the SBA (Small Business Administration) since it recommends and encourages applicants to start their loan proposals with an executive summary or a loan application letter
When a borrower opts for a loan from a conventional bank lender and has to demonstrate that their business is financially viable and experiencing growth

In some situations, you aren’t required to write a loan application letter. These include scenarios like when a borrower is seeking equipment financing and said equipment serves as collateral, when someone requests a business line of credit with business bank statements or financial statements, and when a borrower seeks a term loan online using alternative lenders who want to go over your recent bank statements.

Essential Loan Application Elements

There are specific guidelines you need to follow when writing a loan application:

1. Header and Greeting

Whether you’re filling out a loan application letter for a personal or business loan, it’s crucial that you start with a header and greeting. Include several sentences that outline the necessary, accurate details of your loan request in the header. If you’re opting for a business loan, then you need to include the following details:

Company name
Company phone number
Company address
Loan agent or lender’s name and title
Loan agent or lender’s contact details
A subject line stating the desired loan amount

Follow this by incorporating a greeting right below the header so that you introduce your application with a friendly tone.

2. Loan Request Summary

You will have to provide your lender or loan agent with an overview of your loan request in this section. Ensure this section is concise, detailing only crucial information that’ll enable the lender to reach the letter’s body quickly. Entrepreneurs applying for a business loan should state why they are trustworthy borrowers, basic business details, the ideal loan amount, and the use of the loan.

3. Basic Business Details

It would be best if you started by making a clear loan request which includes the amount you wish to borrow. When you write a few sentences about the workings of your business, they should include the following information:

The legal business name
Any DBA used by the organization
The amount of time the business has been operating
The business structure
Number of employees
An overview of what the company does
Profits and annual revenue, if applicable

Once this is done, you can move on to the next step, which is explaining why you need a loan. Don’t also forget to outline how you plan to repay the owed amount if the lender grants the loan.

4. Loan Usage

Every lender’s goal is to minimize risk as much as possible, so don’t be surprised if they carefully scrutinize your application before deciding whether to accept or disapprove it. They will assess whether you can pay back the loan entirely on time. Make a solid outline of how you intend to use the loan and why granting you the funds is a wise investment. It’s essential to inform the lender that you have clear goals you will accomplish if the loan application is approved.

5. Proof of How You’ll Pay Back the Loan

In order to show your company’s financial health, you’ll need to use figures from the latest balance sheet or income statement. These records are essential because they demonstrate that you can repay the loan.

Additionally, you must include any additional business finances to prove you’re a low-risk investment. State down any existing debt and a schedule detailing how you’ll pay it back if you owe someone else money. Perhaps, you’re a new business, but profits are stable. In that case, ensure you mention this, as it proves your ability to repay the loan.

Once you achieve this, you can add a particular cash flow prediction to give the lender an idea of your payback plan, including the principal and interest amount.

6. Give Accurate Information

There’s no doubt that lending money is a risky investment. You can make your lender’s life easier by providing factual and correct details to ensure both parties agree with the terms of the deal. For example, include your accurate credit history. If you are dishonest during the loan application process, you will be considered a fraud, and there will be repercussions for your actions.

Tips for Writing a Loan Application Letter

Before sending a loan letter request, check your business and personal credit scores and whether you need to take specific steps to improve them
Provide transparent, genuine, and concise explanations
Ensure all information is factual and relevant
Keep all your financial statements ready, such as business balance sheets, cash flow statements, PSL statements, etc
Submit every relevant credential with your loan application request letter
Include the date, time, method, and manner you’ll use to make your payment
Avoid writing a letter that is unnecessarily wordy and long
Follow the rules available online on writing formal letters, so you don’t use an informal tone while assembling your loan application letter
Whether including your business’s current assets, liabilities, or financial health, don’t jot down false information that can get you into legal trouble.

Loan Terms and Penalties

If you fail to pay your loan on time, cancellation fees or penalties may apply that depend on the number of days you’re overdue on the payment. For example, if you’ve looked into how to get a title loan with a lien , you know that your car will be used as collateral. In case you default on payment or provide false information, you are likely to lose ownership of the vehicle.

You should go through the loan terms and conditions as this will enable you to determine how many days your payments can be delayed, how much penalties are for late payments, and the amount you’ll be charged if you cancel your loan. Choosing a loan provider that offers the lowest and most amenable terms is recommended.

Whatever reason you have for acquiring a loan, writing a solid loan application letter will improve your chances of obtaining the financial help you need. This application letter should be composed in a polite, convincing tone and include accurate information. You can do thorough research to pick a lender whose provided options align with your requirements. Consider beforehand how much money you need and apply for the relevant loan.

Join the thousands who have sharpened their business writing skills with our award winning courses.

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What You Should Know About Writing a Business Loan Request Letter

A business loan request is part of the application process for a small business loan at a bank. In most cases, this business request loan letter is required for two types of loans only – traditional bank term loans and SBA loans .

It contains important information about the history of your business, the financial status of it, and an opportunity for you to show why the bank should loan you money.

A business loan request can make or break the chances of you getting approved. Think of it like a cover letter for the bank to review. Here we will discuss how to write a loan letter, what to include, and how to get the best results.

What Is Included in a Business Loan Request Letter?

Business loan request letters include the loan amount, intended use of funds, explanation of why you should be funded, details on your plan on repaying the loan. It should be not more than one page but include enough information about your business.

The following format is recommended in your business loan request letter:

Header: the top of the letter should have contact information such as name, date, information of the loan agent, a subject line with what you are seeking for funding, and a greeting.
Summary: state the purpose of your letter and how much you want to borrow.
Information about your business: this includes the legal name of the company, the legal structure ( sole proprietorship , corporation, etc.), time in business, what your business does, how many employees you have, and annual revenue.
Purpose of the loan: be specific of what your purpose for the loan is including your goals and numbers.
Repayment plan: touch on how you plan to repay the loan as this will help lenders determine if they can trust you with their money.
Conclusion: the end of the letter should include asking the loan agent to review your proposal and hope to speak with them soon and any business documents and financial statements that are required for your loan application. Having all this information available in the beginning of the application will prevent from any delays in your chances of getting funded.

The Bottom Line

If you are applying for a loan from a traditional lender or an SBA, a loan request letter is essential. By following the format above, you can create a template and input all the necessary information to make filling it out easier. You can start by making a rough draft of the letter and then ask a friend or colleague to proofread it. It might help you spot some errors and have the opportunity to improve it. Be sure to not include any false information on your letter to look better, dishonesty will not get you very far.

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Sample Application Letter For Lending Company: Free & Effective

As someone who has crafted numerous application letters for various lending companies, I have gained a unique perspective on what it takes to create a compelling and successful application.

Key Takeaways

Understand the Purpose : Learn why a well-crafted application letter is crucial for loan approval.
Gather Information : Know the necessary details to include in your letter.
Structure Your Letter : Follow a clear and professional format.
Personalize Your Approach : Tailor the letter to the specific lending company.
Highlight Relevant Information : Emphasize your financial stability and repayment capacity.
Proofread and Edit : Ensure your letter is free of errors.
Use a Template : Adapt a provided template to your needs.

Navigating the world of finance and loans can be daunting. Whether you’re applying for a personal loan, a mortgage, or a business loan, the application letter you submit is a critical component of the process.

It’s your chance to present yourself as a credible and trustworthy borrower. Drawing on my extensive experience in writing application letters, I will outline a straightforward approach to crafting a letter that stands out.

Step-by-Step Guide

Step 1: understand the purpose.

Your application letter should succinctly convey why you’re seeking the loan and how you plan to use it. It’s also your opportunity to make a personal connection with the lender and demonstrate your financial responsibility.

Step 2: Gather Necessary Information

Before you start writing, gather all relevant information. This includes:

Personal details (name, address, etc.)
Loan amount and purpose
Employment and income details
Financial statements and credit history

Step 3: Structure Your Letter

A well-structured letter is key. Generally, it should include:

Introduction : Briefly introduce yourself and state the purpose of the letter.
Body : Detail your financial situation, loan purpose, and repayment plan.
Conclusion : Summarize your request and express gratitude.

Step 4: Personalize Your Approach

Research the lending company to understand their preferences and tailor your letter accordingly. This shows that you’ve put thought into your application.

Step 5: Highlight Relevant Information

Focus on what’s most important: your ability to repay the loan. Highlight stable income, financial discipline, and a solid credit history.

Step 6: Proofread and Edit

Ensure your letter is free from grammatical errors and typos. This reflects your professionalism and attention to detail.

Step 7: Use a Template

A template can be a great starting point. Here’s a basic structure:

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

[Lender’s Name] [Company Name] [Company Address] [City, State, Zip]

Dear [Lender’s Name],

[Introduction – Introduce yourself and state the purpose of the letter.]

[Body – Discuss your financial situation, the purpose of the loan, and your repayment plan.]

[Conclusion – Summarize your loan request and express thanks.]

Sincerely, [Your Name]

Tips from Personal Experience

Be Concise : Lenders appreciate brevity. Keep your letter to one page.
Be Honest : Don’t exaggerate your financial situation. Honesty builds trust.
Customize for Each Application : Avoid using a generic letter for all applications.
Use Professional Language : Maintain a formal tone throughout your letter.

Conclusion and Comment Request

Writing an application letter for a lending company doesn’t have to be overwhelming. By following these steps and using the provided template, you can create a letter that effectively communicates your needs and financial stability.

I’d love to hear your thoughts and experiences with loan applications. Please leave a comment below with your insights or questions!

Frequently Asked Questions (FAQs)

A professional office setting with a person sitting at a desk, writing a letter on a laptop.

Q: What is a loan application letter?

Answer : A loan application letter is a formal document submitted to a financial institution or lender to request financial assistance in the form of a loan. It typically outlines the purpose of the loan, the amount requested, and provides relevant personal and financial information.

Q: How do I start writing a loan application letter?

Answer : To begin writing a loan application letter, you should start with a formal salutation, such as “Dear [Lender’s Name]” or “To Whom It May Concern.” Clearly state the purpose of your letter and introduce yourself by providing your name and contact information. Mention the specific loan product or program you are applying for and express your interest in obtaining the loan.

Q: What information should be included in a loan application letter?

Answer : A loan application letter should include your personal information, such as your full name, address, contact details, and social security number. It should also provide details about the loan, including the loan amount, the purpose of the loan, and the desired repayment term. Additionally, include information about your employment, income, and any collateral you may offer.

Q: Why is a loan application letter important?

Answer : A loan application letter is important because it serves as your formal request for financial assistance. It provides lenders with essential information about your financial situation, creditworthiness, and the purpose of the loan. The letter allows lenders to assess your eligibility for the loan and make an informed decision regarding your application.

Q: How should I structure my loan application letter?

Answer : A well-structured loan application letter typically consists of an introduction, body paragraphs, and a conclusion. In the introduction, state the purpose of the letter and provide your personal information.

The body paragraphs should focus on explaining the reason for the loan, your financial background, and any supporting documents or references. Conclude the letter by expressing your gratitude and including your contact information for further communication.

Q: What tone should I use in a loan application letter?

Answer : When writing a loan application letter, it is essential to maintain a professional and formal tone throughout the document. Use polite and respectful language, and avoid using any slang or informal expressions. The tone should convey your seriousness and commitment to repaying the loan.

Q: Can you provide tips for writing an effective loan application letter?

Answer : Certainly! Here are a few tips for writing an effective loan application letter:

Clearly state the purpose of the loan and be specific about how you intend to use the funds.
Provide accurate and detailed information about your financial situation, including your income, assets, and liabilities.
Use a professional tone and proper grammar and spelling.
Highlight any relevant qualifications or experiences that may enhance your credibility as a borrower.
Explain how you plan to repay the loan and provide supporting evidence of your ability to do so.
Include any additional documents, such as bank statements or tax returns, that can support your application.
Proofread your letter thoroughly to ensure it is error-free and presents your case effectively.

Q: Is it necessary to include supporting documents with the loan application letter?

Answer: Yes, it is advisable to include relevant supporting documents with your loan application letter. These documents can vary depending on the lender’s requirements and the type of loan you are applying for.

Commonly requested documents include bank statements, tax returns, pay stubs, identification documents, and proof of assets or collateral. Including these documents demonstrates your financial stability and helps lenders make an informed decision.

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WTO / Applications / 20 Best Loan Application Letter Samples (Guide and Format)

20 Best Loan Application Letter Samples (Guide and Format)

An application letter for a loan is a formal letter written to a financial institution by a borrower requesting a loan, payable in a specified amount of time.

The letter helps lenders get acquainted with the borrowers better to determine if they qualify for the loan based on the information provided or not. Writing it is important because it helps convince lending institutions to lend you a specific amount of money. It is their first impression of you, which is why it should be written with great care. In this article, we will guide you on how to write it, the type of information you should provide, and some pointers that will help you highlight your strengths in the letter.

Brief Overview- What to Include

There are no strict rules for writing an application for a loan. It depends on the borrower to decide what information to include, but the following items are typically included in it:

Contact information
Explanation of why money is needed
Amount of money being requested
Purpose of the money
Details about employment history
Personal references
Company information
A list of supporting documents

When to Write?

Two main situations warrant this letter. The first instance is when you are seeking a loan from a conventional bank lender. Conventional bank lenders are financial institutions that do not offer loans but make them available to the general public. Conventional banks usually require applicants to submit this application to prove their creditworthiness.

The second situation that warrants its use is when applying for an SBA-guaranteed loan. An SBA-guaranteed loan involves the federal government; applicants must undergo additional screening before they are approved for funding. Applicants can improve their chances of getting an SBA guarantee by submitting a personalized, formal loan application with supporting documentation.

There are situations when you do not necessarily need to write this letter, such as when you are borrowing from friends and family, from an alternative lender who may only require your bank statements or pay slips, when seeking equipment financing, and lastly when you are requesting a business line of credit.

Free Templates

Free Loan Application Letter Template Example

Pre-writing Considerations

Applying for a loan involves being prepared for anything, so it is important to have the things you need before writing. Do some research on your lender, and write down notes about why they are suitable for you and what you would like them to know about your project. Write those questions that may arise during the process of applying for your loan. Check your credit score and know your rights as a borrower when you apply for a loan.

After you have done all of the above, review everything and ensure that what you’ve written is easy to understand by someone who has not read your notes or audited your finances. When applying for a loan in a major financial institution or applying for an SBA loan, you will almost always be required to write an application letter for a loan. It is important to note that unless it is supported by a sound credit situation or proper financial planning, it may not be enough to help you secure the loan.

Fortunately, there are two things that you can do to increase your loan limit and increase your chances of getting a loan. You can first check your business and personal credit scores from accredited credit reporting bureaus such as TransUnion, Equifax, and Experian and take the necessary steps to improve them.

The second thing that you can do is to prepare your business financial statements, i.e., your profit and loss statement , cash-flow statement , balance statement, etc., for the past six months and attach them to your letter. These documents are essential when applying for a loan as they help the financial institution assess your creditworthiness and increase your chances of securing a loan.

How to Write a Loan Application?

Writing it can seem daunting, but it can be a simple process if you follow the proper format and include all the required information.

The following is a summary of the information you must provide in your letter:

The header is an integral part of the standard business letter format . It should include:

Your name and contact information : Make sure to include your full name, address, and contact information. This should include a mailing address with a zip code, a business email address, and your cell phone number where you can be reached.
The date : Include the month, day, and year of the letter. You must ensure that you write the date on which the letter was created.
The name of the recipient : This will be a bank representative in many cases, but it can also be an SBA representative or another financial institution to whom the borrower is addressing the letter.

Subject line

When writing it, make sure to include a clear subject line that will help the recipient understand the purpose of the letter. Make sure to include whether the loan is for personal or professional use in the subject line.

“Loan Request Application Letter.”

Address your letter correctly. If you do not know who will be reading it, write “ To Whom It May Concern . ” If you are trying to get a business loan, address it to the company’s representative issuing the loan. If you are applying for a personal loan , address it to the bank or whoever provides it.

Introduction

It should begin with a brief statement of the goal and amount you are requesting. It should also state your qualifications for the loan and any other pertinent information that can be used for your evaluation as a borrower such as your financial status , your work history, the length of time you have been in business, etc.

The body is the main part of the letter, and it should contain all the information the recipient will need to decide whether to grant the loan or deny the request.

Some of the information that must be covered in the body includes:

Basic business information : If you are writing it, the first item to include in the body of the letter is details about your business. This information will help the lender understand who you are and will serve as the foundation for your loan application. Some of the information that you should cover in this section includes your business’s registered name, business type (i.e., partnership , sole proprietorship, LLC , etc.), nature of your business (i.e., what you do), main services and products, your business model, the number of employees that you have, and your annual generated revenue.
The purpose of the loan : You must explain why you need the loan and the purpose for which it is being requested. This can be to purchase or expand a business, for a personal reason, or to pay some debt.
Present yourself as being trustworthy : To get a loan, you need to establish trust with the lender. This can be achieved by explaining what you do for a living, providing some identity documents, and demonstrating why you deserve to be trusted.
Explain how you intend to pay back : Explain briefly how you plan on repaying the loan. This should include a timeline for repayment and be supported by evidence such as a business plan, personal financial statement, or credit report .
Proof of financial solvency : In some cases, you will be asked to provide evidence that the funds requested are not your only source of income. Documents like bank statements or tax returns can help you prove that you have other sources of funding, which will increase the likelihood that your request will be granted.

In the conclusion, you must thank the lender for considering your request. Briefly mention all the attached financial documents. Remember that each lender has their own set of loan application requirements and may request different information or documentation from borrowers, so make sure to double-check the specific instructions provided by the lender.

Once you have finished writing the letter, be sure to sign it at the bottom. You may include phrases such as:

“Respectfully yours” or “Sincerely yours”.

Place your name and contact information directly above the signature line.

SBA Loan Application Letter Template

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Phone Number]

[Your Email Address]

[Loan Officer’s Name]

[Bank Name]

[Bank Address]

Dear [Loan Officer’s Name],

I am writing to apply for a Small Business Administration (SBA) loan to help fund my [business name]. I am excited to have the opportunity to present my business plan to you and explain why I believe my business is a great candidate for an SBA loan.

[Provide an introduction to your business, including its history, products or services offered, and unique selling proposition. Explain why you started the business and what sets it apart from competitors. This should be no more than two paragraphs.]

I am seeking an SBA loan in the amount of [$ amount], which will be used to [briefly explain how the funds will be used]. My business has experienced steady growth in recent years, but we need additional capital to take advantage of new opportunities and expand our reach.

[Provide a detailed explanation of how you plan to use the funds, including any expected return on investment. Be specific about the amount of money you need, how long you will need it for, and how it will be used.]

As part of my loan application, I have included the following documents for your review:

Business plan
Financial statements for the past three years
Tax returns for the past three years
Cash flow projections
Articles of incorporation
Personal financial statements for all owners

A list of collateral that will be used to secure the loan, if applicable

[Provide a comprehensive list of all the documents you have included with your application. Make sure you have included everything the bank has asked for, and any additional documents that may be relevant.]

I am confident in the future success of my business and believe that an SBA loan is the right choice for us. I understand that the loan application process can be lengthy, and I am committed to providing any additional information or documentation that may be required to support my application.

Thank you for considering my loan application. I look forward to hearing from you soon.

Loan Application Letter Sample

Make your small business loan application more polished with our simple sample letters. They’re crafted to help you convey your needs professionally and improve the impact of your request.

Sample letter 1

Dear Sir/Madam,

I am writing to apply for a Small Business Administration loan to support my growing business, GreenTech Innovations. Established in 2018, we specialize in eco-friendly technology solutions. Our recent market analysis indicates significant growth potential in sustainable energy products.

To capitalize on this opportunity, we require additional funding for research and development, marketing, and expanding our team. An SBA loan would enable us to invest in these critical areas, fostering innovation and job creation. Our business plan, attached to this application, outlines our strategy for a sustainable and profitable future.

GreenTech Innovations has a strong financial track record, with consistent revenue growth over the past three years. We have maintained a healthy cash flow and have a solid plan for loan repayment, as detailed in our financial projections. Our commitment to financial responsibility and strategic growth makes us an ideal candidate for an SBA loan.

Thank you for considering our application. We are committed to contributing positively to the economy and the environment. Your support would be instrumental in helping us achieve our goals.

Jordan Smith

Owner, GreenTech Innovations

Sample letter 2

Dear Business Loan Officer,

I am reaching out to request a business loan for my company, Bella’s Boutique, a unique clothing and accessories store located in downtown Springfield. Since our opening in 2019, we have become a beloved part of the local community, known for our exclusive designs and personalized customer service.

This loan is sought to enhance our inventory, upgrade our in-store technology, and expand our online presence. These improvements are essential for keeping pace with the evolving retail landscape and meeting the growing demands of our customers. Our detailed business plan is attached for your review.

Financially, Bella’s Boutique has demonstrated resilience and growth, even amid challenging economic times. Our sales figures have shown a steady increase, and we have a clear plan for managing the loan and ensuring its repayment. We believe these factors make us a strong candidate for a loan.

Your consideration of our loan application is greatly appreciated. This funding will not only help Bella’s Boutique thrive but will also support the local economy by providing more employment opportunities and enhanced retail experiences.

Thank you for your time and consideration.

Warm regards,

Isabella Martinez

Founder, Bella’s Boutique

The effectiveness of these sample letters as a guide for someone seeking to write a loan application lies in several key aspects. Firstly, they demonstrate the importance of a clear and concise introduction, where the purpose of the letter is immediately stated, ensuring the reader understands the intent from the outset. This is crucial in any formal business communication. Both samples skillfully describe the nature and background of the respective businesses, providing just enough detail to give the reader a sense of the company’s identity and market position without overwhelming them with unnecessary information. This balance is vital in maintaining the reader’s interest and establishing the context of the request.

Moreover, the letters excel in explicitly stating the purpose of the loan, which is a critical component of any loan application. They outline how the funds will be utilized to grow and improve the business, demonstrating not only a clear vision but also a strategic approach to business development. This helps in building a sense of trust and reliability with the lender. Furthermore, the inclusion of financial health indicators, such as past revenue growth, cash flow management, and a repayment plan, adds to this trust by showing financial responsibility and foresight.

The writers also incorporate attachments like business plans and financial projections, which provide additional depth and substantiation to their claims. This shows thorough preparation and professionalism, which are highly regarded in the business world. Finally, the tone of the letters is appropriately formal yet approachable, and they conclude with a note of gratitude, reflecting good business etiquette. This combination of clarity, conciseness, relevance, and professionalism makes these letters exemplary guides for anyone looking to draft an effective and persuasive business loan application.

Tips for Writing

Following are some tips for writing this letter:

Be specific

Be sure to include specific details in it to keep the reader’s attention. Ensure that you include information about the purpose of the loan, how much money you need, and the reason why you are a good candidate for a loan.

Brevity is essential when writing this letter. Stick to the essential points and avoid extraneous details. This will help to ensure that your letter is easy to read and that the reader is not distracted by irrelevant information.

Address the appropriate person

Ensure that you address your letter to the most relevant party for your particular situation.

Consider contacting the bank to find out to whom it should be addressed. This is how you can be sure that it will get to the right person.

Use a proper format and layout

As with all letters, you should use clear, concise paragraphs and avoid unnecessary jargon. Make sure to use the appropriate format for formal letter writing and use a professional, polished layout.

Include business financial statements

The financial statements for your company must be attached to your letter if you are a business owner. In this way, the reader will better understand your overall financial situation and help demonstrate that you are a good candidate for a loan.

The following are some of the purposes for which you may request a small business administration loan: to start a new business, to buy new equipment or inventory for your company, to upgrade or expand an existing business, to cover unanticipated expenditures, to pay off high-interest debt, to fund marketing campaigns, to move your office to a new location, to buy insurance for your business, to purchase stock, to buy out shareholders, and for any other lawful reason authorized by the lender.

Key Takeaways

Here are the key takeaways from this article:

When writing an application for a loan, be sure to provide specific details about the purpose of the loan, how much money you need, and why you are a good candidate for a loan.
Use the standard business letter format and use clear, concise paragraphs.
Brevity is vital when writing such a document, so mention only the essential points and avoid extraneous details.
Address your letter to the most relevant party for your situation, and be sure to include your company’s financial statements.

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Original text

A bank loan request is a letter that accompanies your bank loan application package. Similar to a cover letter accompanying a resume, the bank loan request should highlight the key points of your business and sum up your request.

How to Write a Bank Loan Request Letter

Lenders are busy people, so keep your bank loan request brief. It should be a one- or two-page document that the banker can scan quickly to get the gist of your request. The full details about your business and your loan request will be included in the loan application, financial projections, and business plan you submit.

Start your bank loan request by briefly explaining what your business does. You can use the executive summary from your business plan as a reference point in writing this part of the letter.
Include essential business information. This includes your name, the business’s legal name, your legal form of business, business address, the year the business was founded, annual sales, number of employees, key customers, and any other indicators of success.
Specify how much money you would like to borrow and what type of loan you are seeking. For example, do you want a working capital loan to purchase inventory or a loan to buy a building for your business?
Explain how you will use the loan proceeds to attain specific business goals . Detail the measurable results you expect the loan to have on your business, such as increasing sales by 10% annually or doubling production capacity in six months.
List any assets and debts. State the assets you have that could be used as collateral for the loan, as well as any outstanding business debts and when they will be paid off.
End by listing the documents you’re including with the bank loan request and stating that you will contact the banker soon to follow up on your request.

A professional, compelling bank loan request can spur interest in your loan application and increase your chances of approval.

Do you need help fine-tuning your bank loan request? Contact a SCORE mentor for free advice and assistance.

Access to Capital 101- Funding Options to Start and Grow Your Business Attend this insightful webinar for a discussion of the different options available to help you get the funding you need.

Online Small Business Loan Worksheet There are more ﬁnancing options for small businesses available than ever before. Use this worksheet to determine if an online lender right for your business.

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

Business Proposal Templates

Business Loan Proposal Letter

A business loan proposal is a proposal prepared by the person or business seeking a business loan and is presented to the potential lender of the loan. A business loan may be sought if a new business is to be started or if funds are required for the continuation or expansion of the ongoing business. The lender could be a bank, institution, company, or individual; the lender can be small or big.

Usually, it is not easy to meet the financial requirements of a new or even an existing business which is why business loans are often sought by companies or individuals. For this purpose of seeking a business loan, a proposal is prepared that includes all the relevant details for the lender. This proposal can be utilized by the borrower to market itself and make the deal mutually beneficial with higher chances of acceptance.

The details that are required to be included in the proposal depend on the needs and demands of the lender as well as whether the loan is being sought for a new or existing business. However, they generally included details are:

Details of the borrower.
Details of the lender.
Executive summary/introduction.
Company profile, if an existing company.
Experience in and expertise of the field.
The reason for the business loan.
Business loan request including the loan amount.
Repayment process and details.
Collateral details.
Required financial statements, if an existing company.
Projections or predicted figures.

The business loan proposal is a critical document as it lays the basis for the approval or rejection of the loan. Therefore, it has to be prepared carefully and thoroughly. Some of the considerations, while putting it together, are:

The proposal should be professional, formal and comprehensive.
All the relevant and required details should be mentioned.
It should be attractive and lucrative for the lender, especially in terms of the repayment process.
Persuasion should be carried out with strong and influential statements.
If it is a new business, convince about its probability of success and promising growth. And if the loan is required for an existing business, present a good financial standing as it would ascertain the lender about repayment of the loan.
The collateral should be worth consideration for the lender.
Evidence of good credit history or creditworthiness should be provided.
No misleading or incorrect information should be included.

If a lender accepts the proposal, the lender and borrower would get into a legally binding agreement. The business loan would be granted and the borrower must make the repayments as agreed on in the deal. On the other hand, if the potential lender does not approve the proposal, the borrower would have to seek his business loan from some other lender. In addition, the total amount of the business loan, if large, can be divided into proportions and sought separately from different lenders.

Sample Business Proposal Template

Applicant (Sender): [Full Name] [Name of Company] [Address of Company] [Contact Number] [Email Address]

Lender: [Name of Company] Attention: [Full Name of Representative]

Introduction

Dear [Name of Representative of Lender],

I have been working in the [Name of industry-specific to business, e.g food industry] for over [Number] of years. My experience has been gained by working on various projects [Summary of work experience].

[Summary of how the applicant got started]. Since I was in college, I used to work part-time at the local fast food joint. After receiving my degree in [Field of study], I got hired at a well-known food manufacturing company. From then onwards, I have been extremely lucky to advance my career in the [Name of the field] field. Currently, I work at [Name of Company] as the [Job title].

Ever since I started working, I started making goals of opening my own food manufacturing factory. Moreover, I have gathered enough experience and contacts to create a detailed business plan.

This proposal will explain to the [Name of Lending Company] why I need a loan and how the loan will be used in the business plan.

[Name of Applicant]

Company profile

The concept of our business plan has been derived from the need for a proper food manufacturer that caters to the needs of all cultures, with affordable prices. Growing up in a community with people of various cultures, it was hard to find a manufacturer that would provide the required items at affordable price ranges. In order to overcome this problem, we came up with this business idea.

Our business is expected to be up and running in 8 months, with our location situated in an area surrounded by communities of diverse cultures. With steady foot and vehicle traffic, and other stores selling necessities, our location is an ideal spot for a business of our kind.

We plan on providing our products and services to all age groups with a friendly and open-spaced store plan that allows customers to relax and shop at their own pace. Our price ranges will be competitive in regards to other food manufacturers and attracting customers. However, we would also like to provide our employees with living wages and other benefits. Any tips generated will be calculated and distributed equally among the employees.

Other Investors

My business has two more investors, excluding myself, from the [Similar Field of Work] and together we have all brought different experiences and qualifications to create this business plan.

One of the investors has been working as a [Job Title] for over [Number] of years in [Name of Company]. They have acquired experience and qualifications by working with different manufacturers both locally and abroad. Their culturally diverse experience will help us take care of a larger customer base.

The second investor works for [Name of Company] as [Job Title]. They are sourcing or business plan by providing us with knowledge about [Field]. This will benefit our business by [The benefits of 2 nd investor].

I, another hand, will be taking responsibility for [Department]. As I have experience in [Field of work], I will be the sole director of [Department].

Loan request

The total budget calculated according to all the aspects of our business is $[amount]. The three of us investors have raised $[amount] out of the total budget. We have found a space to set up our business, therefore our currently existing investments will be used to lease the space and renovate it according to our business requirements as well as the standards of business operations set by the officials. Moreover, some of the investment has been set aside in order to obtain the required license and registrations. We expect to officially start operations in 8 months.

The loan being requested from [Name of Lending Company] is planned on being used for the following needs:

Equipment, $xxx: In order to manufacture and pack the items, we will need to purchase good quality manufacturing and processing machinery, and also [Other equipment used for manufacturing purposes].
Raw materials/ingredients, $xxx: Special care will be taken when ordering raw materials so the delivery is made just in time and the inventory rotation is maintained.
Promotion, $xxx: In order to attract customers, we will need to advertise and promote the business. Both, internet portals and manual promotion, will help increase the speed of customer base building.

We are requesting [Name of Lending Company] for a loan of $[X], which will be repaid over 13 months with 5% interest.

According to our expected revenue, that will be $xxx per day from [Number] of operational days per month. This means the total revenue for a month will amount to $xxx. After taking out the costs of employees, $xxx per month, and $xxx for operational costs, we will be left with enough finances to pay off the loan under those terms.

The table below displays the different collaterals being kept by all investors as security for the loan request. Among them are two savings accounts, three separate residential properties, etc.

Financial statements

You will find the personal and business financial statements of each investor attached to this proposal.

Projections

The following document explains the plans, in case our expected calculations are not met properly when the business starts operations. This document includes the income and cash flow projections of the business.

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Applications , Request Letters

Loan Request Letter (Format & Sample Applications)

A Loan Request Letter is a letter written by a loan applicant and addressed to a lending institution, generally sent as a part of the loan application process. A loan request letter introduces you to the bank or other lending institution, clearly describes your planned use for the loan funds, and describes how you will pay back the loan. It is the part cover letter and part resume because you demonstrate the qualities that make you a good candidate for a loan by outlining your qualifications.

Anyone who applies for personal or business loan should write a loan request letter and enclose it with their loan application. This letter is often the lending institution’s first impression of you as a borrower. Therefore, it should be professional, clear, and concise, easily fitting into one page.

Important: Write using a professional format and in a professional tone. Banks and other lending organizations are concerned about your ability to repay the loan. Pointing out your financial problems works against you – instead, point out your qualifications as a borrower. Remember, this letter is your first contact with the lender and uses it to showcase your company as a reliable borrower.

What a Lender Needs to Know

In order to consider your loan request, a lender needs some information about you or your company. Although this information is included in detail in your loan application, your letter should formally introduce your request. Here is what you should include in your loan request letter:

Your name and/or your company name, including any DBA
Your contact information
Your business entity structure
Brief description of your business
Your number of employees
How long you have been in operation
Annual revenue and profits if your company is profitable
Amount of loan requested
How the funds will be spent
Your financial security
A list of enclosures

The bank or lending institution is primarily concerned with how the money they are lending will be spent and repaid. Be sure to include information on these two critical points in your letter.

In addition to the loan application, you should enclose applicable financial documents, such as tax returns. Send your business plan, cash flow statement, and profit and loss (P&L) statement.

Loan Request Letter (Format)

{your name}

{your company’s name}

{your address}

{lender name}

{lender title}

{lender institution name}

{lender address}

RE: {(Small business) or (Personal)} loan request for {amount}

Dear {lender name}:

The purpose of this letter is to request a {(small business) or (personal)} loan in the amount of {amount} for the purpose of {purpose}. {Use this space to discuss your small business. Include name, business structure, and industry.}

{Business name} began operation on {date}, with {number} employees. As a {business structure type}, {business name} has consistently grown and now employs {number} individuals. {Use this space to discuss your marketing presence.}

{Use this area to briefly discuss your most recent year’s revenue and profit, if profitable. Discuss revenue and profit consistently over time when possible.}

{Use this area to describe the reason for the loan request.} {Use this area to explain that the opportunity is immediately available, but you lack sufficient immediate funds.}

Attached, please find our business plan, our annual profit and loss statement, and our most recent cash flow statement for your review. These financial documents and our strong credit score of {number} combine to make us a safe credit risk for {lending institution name}.

I would greatly appreciate the opportunity to speak with you about a {(small business) or (personal)} loan. I can be reached at {phone number} or by email at {email address}.

Thank you for your time and your consideration of my request.

{your signature}

Sample Loan Application Letter

Matthew Dobney

Entirely Electronics

3048 West First Street

Spavinah, OK 89776

EntirelyElectronics.com

June 22, 2048

Mr. James Burrows

SBA Loan Administrator

Bank of American Businesses

New York, NY 65782

RE: Small business loan request for $20,000

Dear Mr. Burrows:

The purpose of this letter is to request a small business loan in the amount of $20,000 for the purpose of enlarging our warehouse.

Entirely Electronics began operation on June 1, 2020, with two employees. As a partnership, Entirely, Electronics has consistently grown and now has 20 full-time employees. Entirely Electronics has been quite successful in obtaining a proportionate share of the online electronic retail community. Our online presence has grown from our website alone to Facebook, Instagram, and Yelp. Our marketing techniques consistently drive new customers to Entirely Electronics, and we boast a high customer retention rate.

Last year, Entirely, Electronics saw a growth of 25% in revenue over the previous year. Our profit margin remained stable at 18% throughout the year.

Our growth has created a significant shortage of available warehouse space, and market research shows we will continue to grow. As we look to the future, we understand we must create more warehouse space to continue growing. Although our revenue is consistent, we do not have the immediate large amount needed to complete the necessary expansions to our warehouse.

Attached, please find our business plan, our annual profit and loss statement, and our most recent cash flow statement for your review. These financial documents and our strong credit score of 790 combine to make us a safe credit risk for Bank of American Businesses.

I would greatly appreciate the opportunity to speak with you about a small business loan. I can be reached at 983-744-6597 or by email at [email protected] .

Loan Request Letter Template

Writing a loan request letter takes a bit of time and research, but does not have to be difficult. Using the above format, you can easily request a loan for your small business or a personal need. The sample letter demonstrates how to make a great first impression on a lending institution.

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What Is a Business Loan Proposal?

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Some lenders may require a business loan proposal be included in your application for a business loan . A business loan proposal should not be confused with a business plan. While some similar information is included in both documents, a business loan proposal is more streamlined to focus attention on the loan amount you want and your repayment plan.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How is a business loan proposal different from a business plan?

While you may be asked to include a business plan with your loan application , its use is not limited to that. Think of your business plan as a broad, long-term document that can guide you through each stage of your business, from startup to expansion to sale or closure. It includes information on how your business is structured, how it operates and your plans for the future.

In contrast, a business loan proposal is a focused, short-term document with the purpose of securing funding for your business. The loan amount you're requesting, how it will be used and your ability to repay the loan will be of key interest to lenders.

>> MORE: What is a business loan?


5.0 /5	4.7 /5	4.5 /5
20.00-50.00%	27.20-99.90%	15.22-45.00%
625	625	660

What makes a good business loan proposal?

Like any document, it should be organized and well-written. The loan proposal itself can be relatively short, only a few pages, but additional documents will be added as attachments. The financial information you provide in your loan proposal should demonstrate that your business is financially sound.

Your loan proposal could be laid out in a number of ways. Before you begin, ask your lender if it has a preferred format. If it doesn't, you can use short sections to provide information and highlight specific details. Documents related to each section can be included at the end. This approach will provide a concise summary of your proposal upfront followed by attachments that can back up your statements.

Business loan proposal structure

The following are some typical sections of a loan proposal. If your lender doesn’t require a specific format, then you’ll have some flexibility in heading titles and the order of sections. After completing an executive summary and the business overview, you could rearrange the sections if appropriate for your business.

Executive summary or cover letter

Use the executive summary to briefly describe yourself and your background. Also, give an overview of your business and how you plan to use the loan funds. If you need more than a paragraph to adequately provide this information, then you can convert this section to a separate cover letter that contains a few paragraphs. However, remember that this is a summary and you'll provide more personal details and business information in other sections of the loan proposal.

Business overview

Provide the relevant history of your business, its legal structure, licenses required and a brief summary of its current activity. You can choose to cover your experience, qualifications and skills in this section. Or, if your business has multiple owners or team members who are major contributors to your operation, a separate section can be created to highlight their experience and skills. Add important details about your customers, the current market, industry trends and online marketing channels, if you use them.

Owner investment

The equity you have in your business can demonstrate your commitment to its success. Discuss the monetary investment you have in your business. This includes cash amounts you’ve invested and any retained earnings you’ve held on to.

Loan request

Be clear about the amount of money you're requesting and what it will be used for. Provide details about what will be purchased. Also, explain how you determined the loan amount you needed. Include quotes and estimates you used in your calculations.

Loan repayment plan

Using the loan terms you’ve been offered or quoted and the associated repayment schedule, explain how you’ll be able to make timely loan payments based on your projected sales and cash flow. If fluctuating sales and/or cash flow are normal in your business, explain how cash reserves or another option can be used to make payments during lean times.

>> MORE: Use NerdWallet's business loan calculator to figure out payments

Financial statements

You can provide an overview of both business and personal financial statements in this section and then include the actual statements as attachments.

Lenders will want to see business financial statements for the current period and three prior years. This list includes income statements, balance sheets and net worth reconciliations for your business. Projected income statements and balance sheets are OK if you’re a startup business.

Personal financial statements will be needed for any owner who has 20% or more equity in your business. These statements, which include personal assets, liabilities and net worth, should be current. Check with your lender to see if tax returns are also needed and the number of years.

>> MORE: Best startup business loans

Income and cash-flow projections

Explain the details of your projected income and cash-flow statements in this section. You may also want to discuss what changes you’ll make to your business if you don’t reach your projections. At a minimum provide one year of projections. Multiple years of projections will be needed if a positive cash flow can’t be achieved in the first year.

Pledged collateral

This section can be used to explain what recourse the lender will have if you can’t repay the loan, or the collateral you're pledging with the loan. Summarize the assets you're willing to use as collateral, which can be sold for cash to cover the loan debt. Provide a detailed list of these assets as an attachment.

Existing liabilities

Some lenders may request information on other debts you have. You can summarize the information here and include an attachment with details about whom you owe, their addresses, amounts owed and payment schedules.

Attachments

Finally, include any documents mentioned in the sections of your loan proposal as attachments.

Compare your business loan options

The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.

On a similar note...

One blue credit card on a flat surface with coins on both sides.

Professional Loan Officer Cover Letter Examples for 2024

Your loan officer cover letter must immediately capture the hiring manager’s attention. Demonstrate your expertise in analyzing financial information with clarity. Highlight your proficiency in determining clients' creditworthiness and your impeccable record of managing loan portfolios. Show them your commitment to fostering trusting relationships with clients, ensuring you stand out.

Cover Letter Guide

Loan Officer Cover Letter Sample

Cover Letter Format

Cover Letter Salutation

Cover Letter Introduction

Cover Letter Body

Cover Letter Closing

No Experience Loan Officer Cover Letter

Key Takeaways

Embarking on a job hunt, you've likely discovered that a standout loan officer cover letter is your golden ticket. As tempting as it is to reiterate your resume, your cover letter’s true charm lies in narrating your proudest professional victory. It's a delicate dance of formality and personal touch—dodging cliches while keeping it concise. Aim for a one-page wonder that opens the door to your career dreams without sounding like everyone else’s tune. Let's craft that impressive narrative together.

Personalize your loan officer cover letter and get inspired by other professionals to tell a compelling story;
Format and design your loan officer cover letter to make an excellent first impression;
Introduce your best achievement in your loan officer cover letter to recruiters;
How to make sure recruiters get in touch with you, using your loan officer cover letter greeting and closing paragraphs.

What is more, did you know that Enhancv's AI can write your cover letter for you? Just upload your loan officer resume and get ready to forward your job application in a flash.

If the loan officer isn't exactly the one you're looking for we have a plethora of cover letter examples for jobs like this one:

Loan Officer resume guide and example
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Loan Officer cover letter example

Madison Taylor

Philadelphia, Pennsylvania

+1-(234)-555-1234

[email protected]

Illustrating quantifiable achievements (e.g., "closing an average of 25 loans per month") is essential in demonstrating the candidate's effectiveness and results-driven mindset, which is particularly valuable in a sales-oriented role within the financial sector.
Emphasizing strong relationship-building skills and partnerships with industry professionals showcases the candidate's network and ability to generate business, which is crucial for roles reliant on referrals and collaborations in the mortgage industry.
Mentioning personal alignment with the company's core values (e.g., "Homeward Financial's emphasis on integrity and customer satisfaction resonates deeply with my professional philosophy") helps to establish a cultural fit, important for both the applicant and employer.

The must-have sections and format of your loan officer cover letter

When writing your loan officer cover letter, keep in mind that it'll only be read by the recruiters and not the Applicant Tracker System (or software used to assess your profile). That's why you should structure your content with a/an:

Header (apart from your contact information, include your name, the role you're applying for, and the date);
Personalized salutation;
Opening paragraph to win the recruiters over;
Middle paragraph with key details;
Closing that starts from clichés;
Sign off (that's not mandatory).

Industry standards dictate your paragraphs to be single-spaced and to wrap your content in a one-inch margin. Designing your loan officer cover letter, refer to one of our templates , which automatically takes care of the spacing and margins.

Choose the same font for your loan officer cover letter as you did for your resume : the likes of Lato and Bitter would help you to stand out in a sea of cover letters in Arial or Times New Roman.

Export your whole loan officer cover letter from our builder in PDF to keep the same formatting and image quality.

The top sections on a loan officer cover letter

Header: This should include the candidate's contact information and the date to ensure the recruiter knows who the letter is from and can easily get in touch for follow-up discussions specific to loan officer opportunities.
Greeting: A personalized salutation addressing the hiring manager by name demonstrates the candidate's attention to detail and professionalism, which are crucial traits for a loan officer.
Introduction: This brief section should capture the recruiter’s attention by outlining the candidate's relevant experience in finance or customer service, showcasing their suitability for the loan officer role.
Body: The body should contain specific examples of past successes in financial analysis or customer relationship management, emphasizing skills and experiences that directly align with the loan officer position.
Closing: Here, the candidate should reiterate their enthusiasm for the position, mention their availability for an interview, and include a courteous thank-you to the recruiter for considering their application for such a pivotal role within the financial industry.

Key qualities recruiters search for in a candidate’s cover letter

In-depth understanding of lending procedures and regulations: Being knowledgeable about current lending laws ensures compliance and protects both the lender and borrower.
Strong analytical skills: Loan officers must analyze applicants' financial data to assess creditworthiness and the risk involved in offering them a loan.
Excellent interpersonal and communication skills: Building relationships with clients and effectively communicating loan terms and financial advice is crucial for client satisfaction and retention.
Proven sales experience: Demonstrating the ability to sell financial products successfully is important since loan officers must persuade clients to choose their institution's offerings.
Detail-oriented approach: Attention to detail ensures accuracy in loan processing, which is essential for maintaining legal compliance and avoiding costly errors.
Customer service orientation: Offering exceptional customer service can differentiate a loan officer in a competitive market and lead to increased referrals and repeat business.

How to address hiring managers in your loan officer cover letter greeting

Goodbye, "Dear Sir/Madam" or "To whom it may concern!"

The salutation of your loan officer cover letter is how you kick off your professional communication with the hiring managers.

And you want it to start off a bit more personalized and tailored, to catch the recruiters' attention.

Take the time to find out who's recruiting for the role (via LinkedIn or the company page).

If you have previously chatted or emailed the hiring managers, address them on a first or last name basis.

The alternative is a "Dear HR team" or "Dear Hiring Manger", but remember that a "Dear Ms. Simmons" or "Dear Simon," could get you farther ahead than an impersonal greeting.

List of salutations you can use

Dear Hiring Manager,
Dear [Company Name] Team,
Dear [Specific Department] Team,
Dear Mr./Ms. [Last Name],
Dear [First Name] [Last Name],
Dear [Job Title],

Your loan officer cover letter introduction and the value you bring

Moving on from the "Dear Recruiter" to your professional introduction .

Use those first two sentences of your loan officer cover letter to present the biggest asset you'd bring to the organization.

Don't go into too much detail about your achievement or the skill set, but instead - go straight for the win.

That is - what is your value as a professional?

Would you be able to build stronger, professional relationships in any type of communication? Or, potentially, integrate seamlessly into the team?

What comes next: your loan officer cover letter middle paragraphs

In the next three to six paragraphs (or the body of your loan officer cover letter) you have to prove your unique value .

Most candidates tend to mess up at this stage. They tend to just copy-paste information from their resume.

That's one big no-no.

Remember that when writing your loan officer cover letter, it has to be personalized. And, your ultimate aim is to catch the recruiter's eye.

So, look back on key job requirements and write down a list that includes the ones you cover.

Next, select just one key achievement from your professional (or personal) history that meets those advert keywords.

Narrate a story around how you've grown your skill set and knowledge. Also, aim to show the unique understanding or soft skills you bring about, thanks to your past success.

Thinking about the closing paragraph of your loan officer cover letter

Before your signature, you have extra space to close off your loan officer cover letter .

Use it to either make a promise or look to the future.

Remind recruiters how invaluable of a candidate you are by showing what you plan to achieve in the role.

Also, note your availability for a potential next meeting (in person or over the telephone).

By showing recruiters that you're thinking about the future, you'd come off as both interested in the opportunity and responsible.

What to write on your loan officer cover letter, when you have zero experience

The best advice for candidates, writing their loan officer cover letters with no experience , is this - be honest.

If you have no past professional roles in your portfolio, focus recruiters' attention on your strengths - like your unique, transferrable skill set (gained as a result of your whole life), backed up by one key achievement.

Or, maybe you dream big and have huge motivation to join the company. Use your loan officer cover letter to describe your career ambition - that one that keeps you up at night, dreaming about your future.

Finally, always ensure you've answered why employers should hire precisely you and how your skills would benefit their organization.

Key takeaways

Your loan officer cover letter is your best shot at standing out by showing your motivation and the unique skills you'd bring to the job:

Chose no more than one achievement, which you'd be talking about in the body of your loan officer cover letter, by focusing on skills and outcomes;
Address recruiters with their first or last name, or "Dear Hiring Manager" in your loan officer cover letter greeting;
Introduce in no more than two sentences what makes your profile unique (perhaps it's your motivation, enthusiasm, or appreciation of the company you're applying for);
Select the same font you have used in your resume (avoid Times New Roman and Arial, as most candidates tend to invest in them);
Close your loan officer cover letter with a promise of how you see yourself growing in the company and the benefits you'd bring about.

Cover letter examples by industry

AI cover letter writer, powered by ChatGPT

Enhancv harnesses the capabilities of ChatGPT to provide a streamlined interface designed specifically focused on composing a compelling cover letter without the hassle of thinking about formatting and wording.

Content tailored to the job posting you're applying for
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1 Loan Officer Cover Letter Example

Loan Officers excel at evaluating, authorizing, and recommending approval of loan applications, skillfully balancing risk and reward. Similarly, your cover letter is your chance to demonstrate your ability to assess and manage professional risks and rewards, showcasing your skills, experiences, and dedication. In this guide, we'll delve into the best cover letter examples for Loan Officers, helping you craft a compelling narrative that resonates with recruiters.

Cover Letter Examples

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The best way to start a Loan Officer cover letter is by addressing the hiring manager directly, if their name is known. Then, introduce yourself and state the position you're applying for. You should also briefly mention your relevant experience in the field. For instance, "Dear [Hiring Manager's Name], I am writing to apply for the Loan Officer position at [Company's Name]. With my extensive experience in providing loan services and my proven track record in maintaining customer relationships, I am confident I can contribute significantly to your team." This approach shows professionalism and a clear understanding of the role.

Loan Officers should end a cover letter by summarizing their interest in the position and their qualifications. They should also express their eagerness to contribute to the company's success. A strong closing might be: "I am excited about the opportunity to bring my unique blend of skills and experience to your team and am confident that I can contribute to your company's success. Thank you for considering my application. I look forward to the possibility of discussing this opportunity further." Always remember to end with a professional closing such as "Sincerely" or "Best regards," followed by your name. This ending reiterates your interest, highlights your suitability, and opens the door for further communication.

A Loan Officer's cover letter should ideally be about one page long. This length is sufficient to introduce yourself, explain why you're interested in the position, and highlight your most relevant skills and experiences without overwhelming the reader. The goal is to provide a concise, yet compelling narrative about your qualifications for the job. Remember, hiring managers often have many applications to review, so keeping your cover letter concise and to the point increases the chances that it will be read in its entirety.

Writing a cover letter with no experience as a Loan Officer can seem challenging, but it's important to remember that everyone starts somewhere. Here's a step-by-step guide on how you can approach it: 1. **Start with a Professional Greeting**: Address the hiring manager by name if possible. If you can't find the name, use a professional greeting like "Dear Hiring Manager." 2. **Introduction**: Begin your cover letter by introducing yourself and expressing your interest in the Loan Officer position. Mention where you found the job posting and why you are interested in the role and the company. 3. **Highlight Relevant Skills**: Even if you don't have direct experience as a Loan Officer, you likely have other relevant skills that can be transferred to the role. These might include customer service skills, analytical skills, attention to detail, or sales experience. Use specific examples to demonstrate these skills. For example, if you have a background in finance or banking, you can discuss how this has given you a strong foundation in understanding loan processes, risk assessment, and financial advising. 4. **Showcase Your Education**: If you have a degree in finance, economics, or a related field, be sure to highlight this in your cover letter. You can also mention any relevant coursework or projects that have prepared you for the role of a Loan Officer. 5. **Express Your Willingness to Learn**: As you're applying for an entry-level position, employers will be looking for candidates who are eager to learn and grow. Express your willingness to learn and adapt to new responsibilities. 6. **Close Professionally**: In your closing paragraph, reiterate your interest in the position and thank the hiring manager for considering your application. Provide your contact information and express your hope for further discussion. 7. **Proofread**: Finally, make sure to proofread your cover letter for any spelling or grammar mistakes. A well-written, error-free cover letter shows your attention to detail and professionalism. Remember, the goal of your cover letter is to show the hiring manager why you would be a good fit for the role, even without direct experience. Highlight your relevant skills, education, and your eagerness to learn, and you'll be on your way to crafting a compelling cover

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COMMENTS

Business Loan Application Letter Sample: Free & Effective
Step 2: Start with Your Contact Information. Begin your letter with your contact information at the top, followed by the date and the lender's details. This establishes a professional tone from the outset. Example: Your Name. Your Business Name. Your Business Address. City, State, Zip Code. Date.
How to Write a Business Loan Request Letter
The first sentence of your letter should express your request for the loan and the amount you want to borrow. Next, use a few short and concise sentences to provide a basic overview of your business. In this section, be sure to include: Business's legal name and any DBA that your business uses.
How to Properly Write a Business Loan Request
For example, your summary might look something like this: I'm writing to request a [loan amount] loan for my small business in the [industry name] industry, [business name]. With this loan, [business name] would [describe your intended business loan use]. As you can see, you don't need much detail here. You're just giving the reader a ...
7 Tips on How to Write a Business Loan Request Letter
A subject line that states you're writing to request a loan and the amount you're trying to borrow. Keeping a cordial tone throughout the letter can help leave a good impression on the lender. So beneath all the necessary information in the header, you should write a kind but formal greeting. 2. Write a brief summary.
Loan Request Letter: Our Guide to Writing a Convincing One
Dear Mr. Smith: I am writing this letter to request a small business loan in the amount of $100,000 for the purpose of hiring additional staff. My business, ABC, Inc., is a growing company that serves clients in the food-service industry. You can follow our success online at www.ABCInc.com.
Tips and Tricks of Writing a Business Loan Request Letter
There are essentially two instances in which you will. 1. When asking for a loan from a traditional bank and 2. When applying through the SBA program, they will almost always request such a cover letter. You do not however always need to include a loan request letter with your application. For instance, if you're applying for a loan through an ...
16 Loan Application Letter Samples
Name of Loan Officer. Name of Financial Institution or Bank. Address of Financial Institution or Bank. City, State, Zip Code. RE: Loan Application for $100,000. Dear [Loan Officer's Name], I am writing to formally request a loan of $100,000. As a loyal customer for the past 20 years, I have always trusted this institution with my financial ...
How To Write A Request Letter For A Business Loan
Date the letter correctly (when the letter was written) Include the name, title, and other important contact information of your loan agent. Include a subject line that states you are applying for a loan and the amount of loan you are applying for. Include a formal greeting.
Business Loan Request Letter Sample: Free & Customizable
Step 1: Address the Letter Properly. Begin by addressing the letter to the correct person. If you know the lender's name, use it. If not, "Dear Loan Officer" is a suitable alternative. Personalizing the letter can create a connection right from the start.
How to Write a Loan Application Letter
Your name. Company name. Company phone number. Company address. Loan agent or lender's name and title. Loan agent or lender's contact details. A subject line stating the desired loan amount. Follow this by incorporating a greeting right below the header so that you introduce your application with a friendly tone. 2.
What You Should Know About Writing a Business Loan Request Letter
A business loan request is part of the application process for a small business loan at a bank. In most cases, this business request loan letter is required for two types of loans only - traditional bank term loans and SBA loans.. It contains important information about the history of your business, the financial status of it, and an opportunity for you to show why the bank should loan you ...
Sample Application Letter For Lending Company: Free & Effective
A well-structured letter is key. Generally, it should include: Introduction: Briefly introduce yourself and state the purpose of the letter.; Body: Detail your financial situation, loan purpose, and repayment plan.; Conclusion: Summarize your request and express gratitude.; Step 4: Personalize Your Approach. Research the lending company to understand their preferences and tailor your letter ...
How To Write A Professional Business Loan Application Letter
1. Include a header. When writing a business loan request letter, the first step is to add a header at the top of the document. Mention the company's contact details and include the address of the bank. Also include your name, residential address, business name and business address. Then, add the name of the lender or bank manager, the address ...
20 Best Loan Application Letter Samples (Guide and Format)
An application letter for a loan is a formal letter written to a financial institution by a borrower requesting a loan, ... Some of the information that you should cover in this section includes your business's registered name, business type (i.e., partnership, sole proprietorship, LLC, etc.), nature of your business (i.e., ...
Bank Loan Request for Small Business
A bank loan request is a letter that accompanies your bank loan application package. Similar to a cover letter accompanying a resume, the bank loan request should highlight the key points of your business and sum up your request. How to Write a Bank Loan Request Letter. Lenders are busy people, so keep your bank loan request brief.
Business Loan Proposal Templates for MS Word
A business loan may be sought if a new business is to be started or if funds are required for the continuation or expansion of the ongoing business. The lender could be a bank, institution, company, or individual; the lender can be small or big. ... Cover letter It is humbly stated that I, , have been associated with the field of event ...
Loan Request Letter: Format (with Sample Applications)
New York, NY 65782. RE: Small business loan request for $20,000. Dear Mr. Burrows: The purpose of this letter is to request a small business loan in the amount of $20,000 for the purpose of enlarging our warehouse. Entirely Electronics began operation on June 1, 2020, with two employees.
What Is a Business Loan Proposal?
It includes information on how your business is structured, how it operates and your plans for the future. In contrast, a business loan proposal is a focused, short-term document with the purpose ...
How to Write Business Loan Request Letter
Details of the bank to which the loan application is to be made. 4. The subject of the letter, for example, "Business Loan Request," wherein the loan amount may or may not be mentioned, although it is advisable to do so. 5. Greetings to the bank officer ("Dear Sir/Ma'am," "Respected Sir/Ma'am," may be used) Body.
Loan Officer Cover Letter Example and Template for 2024
Consider the following steps to guide you through the process of writing a cover letter for a loan officer position: 1. Set up the page. Because a cover letter is a business document, hiring managers expect it to follow certain formatting conventions. In your preferred word processing application, apply these settings:
Professional Loan Officer Cover Letter Examples for 2024
Cover Letter Examples >. Professional Loan Officer Cover... Your loan officer cover letter must immediately capture the hiring manager's attention. Demonstrate your expertise in analyzing financial information with clarity. Highlight your proficiency in determining clients' creditworthiness and your impeccable record of managing loan portfolios.
Professional Loan Application Letter Templates
1. Be professional. A loan application is serious business to a bank and entails some risk. By keeping your letter professional, you come across as more trustworthy and a better investment. 2. Learn the loan officer's name. You want to address your application letter to a person, not a bank or team within the bank.
1+ Loan Officer Cover Letter Examples (with In-Depth Guidance)
1 Loan Officer Cover Letter Example. Loan Officers excel at evaluating, authorizing, and recommending approval of loan applications, skillfully balancing risk and reward. Similarly, your cover letter is your chance to demonstrate your ability to assess and manage professional risks and rewards, showcasing your skills, experiences, and dedication.

How to Properly Write a Business Loan Request

How to write a business loan request letter

1. Start with the easy stuff

2. Write a brief summary

3. Add information about your business

4. Explain your financing needs

5. Discuss your repayment plan

6. Close the letter

Loan proposal letter template

The takeaway

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What is a business loan request letter?

How to write a small business loan request letter

1. Start with a header and a greeting

2. Write a brief summary

3. Provide a basic overview of your business

4. Add info on any partners, if applicable

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6. Demonstrate that you can repay the loan

7. Add your concluding elements

Examples of a small business loan request letter

Example small business loan request letter #1

Example small business loan request letter #2

When do you need a business loan request letter?

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TABLE OF CONTENTS

What Is a Business Loan Request Letter?

When You Need a Loan Request Letter

Prerequisites for Writing Loan Request Letters

Business Loan Request Letter Format

Heading and Greeting

Summary of Your Small Business Loan Request Letter

Basic Information About Your Business

Explanation of the Purpose of Your Loan

Summarize Your Ability to Repay the Loan

Concluding Elements

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Mastering the Loan Request Letter Format

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Tips and Tricks of Writing a Business Loan Request Letter

When to Draft a Loan Request Letter

Preparing to Write a Loan Request Letter

How a Loan Request Letter Should be Formatted

The Importance of the Loan Request Letter

What Is A Business Loan Request Letter?

What You Need To Know About Writing A Loan Request Letter

1. Basic Business Information

2. Purpose Of The Loan

3. Provide Repayment Assurance

How To Write A Request Letter For A Business Loan

1. Heading And Greeting

2. Summary of Your Business Loan Request Letter

3. Basic Information About Your Business

4. Description Of The Purpose Of The Loan

5. Show Your Ability to Repay the Loan

6. Concluding Elements

Sample Of Business Loan Request Letter

Perfecting The Art Of Writing Business Loan Request Letters

How to Write a Loan Application Letter

What is a Loan Application Letter?

When Do You Need One?

Essential Loan Application Elements

1. Header and Greeting

2. Loan Request Summary

3. Basic Business Details

4. Loan Usage

5. Proof of How You’ll Pay Back the Loan