Business Loan Application Letter

Tips in Writing a Business Loan Application Letter

  1. Remember the technicalities:
    1. Put the correct full name of the person you are writing to
    2. Single spaced
    3. Edit, edit, edit
    4. Left align not justify
    5. BOLD the name of the person you are writing too
    6. Keep it in one page
  2. Say what you want to say in the first sentence. You are not the only person requesting for a business loan. If they have to flip a page just to know what you want, it will reflect the kind of person you are and it’s the kind they don’t like.
  3. Make sure you explain what your business is all about in one short paragraph. You should be able to explain what you do in one or two sentences. If it requires more than that, you either don’t know your business or you really don’t have a business.
  4. Make sure you explain what the loan is for in a short paragraph. The details of which should be in the business plan.
  5. The structure should be:

Para 1: How much you are asking for and what it is for.

Para 2: Describe your business

Para 3: Loan purpose

Para 4: Target Market (if not mentioned in Para 2)

Para 5: Your own investment

Para 6: Closing

Business Loan Application Letter Sample



Branch Manager

Biggest Bank in America

1234 Pasadea St.

California 90210


Re:  Loan Request for $40,000.00



Dear Mr. Doe,


I write to request for a small business loan of $40,000.00 to start my paper collection and recycling business. My business is already a duly registered company with the Secretary of State under the name EcoTwist Paper Company.


I have a contract with more than 50 offices/companies in California. I collect all their used papers, newspapers, magazines, posters, and other printed materials they wish to dispose of. I pay $1 per 10 kilograms of papers. I then resell this to different companies who use papers to make papers, furniture, and materials.


The $40,000.00 will be used to set up a facility that will allow me to do the recycling myself. I entered into a contract with 5 schools to supply them with exam books, papers, and papers for their books. Each school has signed a $3,000.00 contract.


I am pursuing 15 other schools and 10 companies for a similar deal.


My major competitors are ABC Recycling and Eco-Loving Recycling. Both of these companies are also collecting used papers from different companies and are reselling it to different businesses. However, neither of these companies are making a move to do their own recycling. We are also indirectly competing with manufacturers of recycled products.


I have already invested $30,000.00 of my own money


My collateral consists of business assets having a fair market value of $20,000.00 and personal assets valued at $10,000.00.


Please review the attached business plan which details how the money will be used. If you have any questions, please contact me at [insert phone number].


Yours truly,



[Your name under your signature]


For other types of business letters or business loan application letter, leave a comment or write us at

Posted on 2012-10-26 20:35:02 by BusinessLetterKing  

SocialTwist Tell-a-Friend