Businesses often need financing to grow or to make it through a rough patch. Business lenders require more information than consumer lenders when determining creditworthiness. This often includes years of business and financial documents. To succeed in your request for financing, you can write a letter before you submit a formal application to give an overview of your business and a personal touch to the application process.
Introduce your company in the first paragraph. Include information such as the company's name, the name of the owners or board members, when you started the business and the business activities.
Discuss financials and growth in the second paragraph. Tell the lender about the company's net profits for recent years and the expected net income for this year. Give a brief summary of the basis for your current-year estimation. For example, mention if you have signed contracts or order requests lined up for later in the year.
In the third paragraph, state the future objectives of the company and where you see areas for long-term growth and development.
Put the financing request in the last paragraph. Explain how you will use the money. Tell the lender when you plan on paying it back.
Type your contact information at the bottom of the letter and sign it.
Lauren Treadwell studied finance at Western Governors University and is an associate of the National Association of Personal Financial Advisors. Treadwell provides content to a number of prominent organizations, including Wise Bread, FindLaw and Discover Financial. As a high school student, she offered financial literacy lessons to fellow students.