Things to Remember When Writing a Business Loan Application
- Make sure you know the complete name of the person you need to address the letter too.
- The value of your company is measured based on your current income not the future income.
- Make sure to mention what you will be using the money for.
- State what is unique about your business. If there is nothing unique about it then state why you think this will make it above the competition. Remember that “hard work” and “we believe in our product or service” doesn’t count.
- You must have necessary financial documents to support your claims.
- Edit, edit, edit.
Sample Business Loan Application Letter
Full Name of the Person
Dear Mr. Last Name,
This is to apply for a business loan worth $###,####.## for my existing company, XYX Bottles Company.
XYX Bottles Company manufactures original and patented drinking bottles that is designed to solve the prevailing problem many drinking bottles owner, the difficulty of thoroughly cleaning the bottom of drinking bottles. XYX Bottles may be opened on both ends. The company has been in operation for three years now with a Gross income of $400,000.00 annually.
XYX Bottles are now in 150 stores in the West Coast. We also have existing contracts with 21 companies, providing them water bottles with company logos for their employees and as a give away to their customers and clients.
We are now in talks with WalMart and five other major retailers.
The $###,####.## will be used to meet the increasing demand. Right now, all our bottles are US made. However, with the right volume, we will be able to move the manufacturing to China that would give us bigger margins. More importantly, it will allows us to meet the demands that is currently holding back our expansion program.
We have enough funds to meet current demands but not the potential demands of future partners. It is also the lack of manufacturing money that is stopping us from exporting worldwide.
Since the design is patented, we don’t have any direct competition. The closest ones are the smaller players in the industry. Nike, Adidas, and other big companies make their own bottles but 75% of the market is occupied the smaller players. As a whole, it is a $1B industry. That includes disposable plastic bottles.
Attached is the business plan and other financial documents that will support the loan request. Please contact us should there be further requirements, inquiries or for a meeting.
Your name and signature