5 Amazing Tips to Write a Small Business Loan Request Letter

5 Amazing Tips to Write a Small Business Loan Request Letter

If you want to secure a loan from a bank, a credit union, or an alternative lender to successfully run and grow your small business, it’s vital to know how to write a loan request letter.

Your lenders’ underwrite will look at the business loan request when reviewing your loan application. It contains important information about your financial status, credit history, and other financial information. A well-written request letter will help you easily convenience the lender to loan you money.

How to write a great small business loan request letter? What to include in this letter? What format should you use? Keep reading while we’re sharing some important information on how to write a successful small business loan request letter.

Heading and Greeting The first and foremost thing you need to add to your loan request letter is heading and greeting. Here are some of the many necessary pieces of information you need to include in your request letter header. ● Business name

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Your name and contact information Business address and phone number Leners’ name, title, and contact information A subject line with your requested loan amount A greeting

Business Loan Request Summary The next step is to write a brief summary of your small business loan in your small request letter. Provide a quick description with basic information - how much amount you need to borrow, why you need it, and how you will be going to use it.

Basic Information About Your Business Next, use a few concise sentences to share the basic information about your small business. This information should include: ● Company’s legal name ● Business entity structure ● Brief description of what’s your business is all about ● The business history of your company ● Annual revenue and profit ● Number of employees

Explain the Purpose of the Loan Explain in the letter clearly and summarily exactly how you’re going to use the borrowed amount. Be as specific as possible, showing your lender how this extra cash will help you achieve your set goals and objectives and cite numbers to quantify them.

For example, instead of saying you need capital to market and advertise your products, specify what marketing platforms you’ll use, how much each will cost and how this marketing campaign will help your business.

Show Your Ability to Repay the Loan Amount

Share your credit score, business history, annual revenue, cash flow, and other important financial documents that reflect your business ability to repay the borrowed amount, including: ● Balance sheet and profit & loss statement ● Details of all your business debts ● Cash flow projections

Bottom Line Your small business loan request letter plays a vital role in deciding whether your loan will be approved by a lender or not. Follow these valuable tips to write an attractive loan request lender that will impress your lenders.

If you want to find the best terms and rates for a small business loan, you can use an online lending marketplace. These innovative platforms will help you compare the best loan offers from multiple lenders so you can choose one that best fits your current financial needs and budget.