How to write loan application letter
Business Loan Application Letter Sample
Biggest Bank in America
1234 Pasadea St.
Re: Loan Request for $40,000.00
Dear Mr. Doe,
I write to request for a small business loan of $40,000.00 to start my paper collection and recycling business. My business is already a duly registered company with the Secretary of State under the name EcoTwist Paper Company.
I have a contract with more than 50 offices/companies in California. I collect all their used papers, newspapers, magazines, posters, and other printed materials they wish to dispose of. I pay $1 per 10 kilograms of papers. I then resell this to different companies who use papers to make papers, furniture, and materials.
The $40,000.00 will be used to set up a facility that will allow me to do the recycling myself. I entered into a contract with 5 schools to supply them with exam books, papers, and papers
for their books. Each school has signed a $3,000.00 contract.
I am pursuing 15 other schools and 10 companies for a similar deal.
My major competitors are ABC Recycling and Eco-Loving Recycling. Both of these companies are also collecting used papers from different companies and are reselling it to different businesses. However, neither of these companies are making a move to do their own recycling. We are also indirectly competing with manufacturers of recycled products.
I have already invested $30,000.00 of my own money
My collateral consists of business assets having a fair market value of $20,000.00 and personal assets valued at $10,000.00.
Please review the attached business plan which details how the money will be used. If you have any questions, please contact me at [insert phone number].
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