Write a letter re commend ing a loan to a customer
Answers
Answer:
Sample Request Letter for a Working Capital Loan to Support Expansion
Jack Smith
Owner
ABC Builders
123 Park Lane
Miami, FL 33145
Jan. 1, 2020
John Doe
Senior Loan Officer
XYZ Bank
987 Spring Road
Philadelphia, PA 19115
Re: Small business loan request for $100,000
To Mr. Doe,
ABC Builders is a successful business that is well established in the building and renovation industry. We began operation with 3 employees in January 2010 as a small company offering renovation services to local businesses and homeowners. We now have 20 employees. We advertise on our website, ABCBuilders.com, and market on social media channels as well as at home building expos.
Last year, our annual sales totaled $3.5 million. In the first year of business, we earned a net profit of $1 million. Additionally, we have maintained a steady balance in the past 10 years.
Because of increasing interest from prospective clients in neighboring cities, we have decided to open a second location. The loan we are requesting is for this additional location, which we anticipate will increase revenue by $300,000 in the first quarter following opening.
Startup costs can be costly, and we require funding to purchase supplies and equipment. However, we anticipate strong sales for the new branch and have immediate work opportunities, which will contribute to our loan repayments.
The loan of $100,000 we are requesting will provide us with the funding we need to help successfully open our second location. I have attached the contracts we have in the new location, pending equipment availability and ability to complete the project as well as our business plan with a breakdown of costs and detailed market analysis.
Thank you for reviewing this letter and the accompanying financial documents. I look forward to hearing from you at your convenience.
Sincerely,
Jack Smith [signature]
Jack Smith
ABC Builders
Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement
Answer:
Sample Request Letter for a Working Capital Loan to Support Expansion
Jack Smith
Owner
ABC Builders
123 Park Lane
Miami, FL 33145
Jan. 1, 2020
John Doe
Senior Loan Officer
XYZ Bank
987 Spring Road
Philadelphia, PA 19115
Re: Small business loan request for $100,000
To Mr. Doe,
ABC Builders is a successful business that is well established in the building and renovation industry. We began operation with 3 employees in January 2010 as a small company offering renovation services to local businesses and homeowners. We now have 20 employees. We advertise on our website, ABCBuilders.com, and market on social media channels as well as at home building expos.
Last year, our annual sales totaled $3.5 million. In the first year of business, we earned a net profit of $1 million. Additionally, we have maintained a steady balance in the past 10 years.
Because of increasing interest from prospective clients in neighboring cities, we have decided to open a second location. The loan we are requesting is for this additional location, which we anticipate will increase revenue by $300,000 in the first quarter following opening.
Startup costs can be costly, and we require funding to purchase supplies and equipment. However, we anticipate strong sales for the new branch and have immediate work opportunities, which will contribute to our loan repayments.
The loan of $100,000 we are requesting will provide us with the funding we need to help successfully open our second location. I have attached the contracts we have in the new location, pending equipment availability and ability to complete the project as well as our business plan with a breakdown of costs and detailed market analysis.
Thank you for reviewing this letter and the accompanying financial documents. I look forward to hearing from you at your convenience.
Sincerely,
Jack Smith [signature]
Jack Smith
ABC Builders
Enclosures: Business plan, profit-and-loss statement, balance statement, cash-flow statement
Explanation: