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.