If you are a small business looking for fund then you need to follow a funding request letter format to write a formal funding request letter for small business. The purpose of a funding request letter for small business example is to share the details about your business that help you get the funding from a bank or some other institution.
We have come up with a formal funding request letter for small business template that can be used for creating a personalized letter as per your subjective requirement.
How to Write a Funding Request Letter for Small Business
If you are planning to create a proficient funding request letter for your small business then here are some tips that can be very helpful to you in drafting your letter.
- Always include the subject in your letter.
- Don’t forget to include the greetings.
- Make sure you introduce your business and include the amount of funding you are looking forward for.
- Talk a little more about your business.
- Include the purpose for which you are seeking the loan.
- Talk about your ability to repay the funds.
- Don’t forget to thank in the end of the letter.
Funding Request Letter for Small Business Example
Date: September 2nd, 2021
Mr. Anthony Smith
New Times Bank
Sub: Business loan request for $ 50,000
Dear Mr. Anthony,
I am writing this letter to submit my loan request of $ 50,000 for my hardware business. Angel Hardware is a growing construction company based in New York that excels in providing a wide range of hardware goods that are required for commercial and residential construction. We are a ten years old company which began its operations in May 2011 with just two employees and in this short span, we have grown up into an organization with 15 employees.
In the very first year of our business, we had a profit of $ 75,000 and the last year, our profits totaled to $ 3.8 million. During the span of last ten years, our sales and profits have shown a progressive graph and have maintained a steady pace.
With increasing client base and demand, we are planning to come up with another store in California as we aim to expand our business. And therefore, we are requesting for a loan from your bank. We are anticipating an increase in our revenues by $ 200,000 in the very first quarter after the opening.
We will be using these funds to manage the startup costs that include setting up the store and marketing our store in California. Though we have a strong client base in the city but we will be required to add more clients to meet our target of growth.
We are requesting for a loan of $ 50,000 from your bank that will be helpful in conveniently setting up our new store. For your reference, the contracts of the new location have been attached along with complete business plan.
Thank you for considering our letter. We will look forward to hear from you.