At some point, an infusion of outside funds may be needed to keep your business running smoothly, to launch a product, or to take advantage of a market opportunity. A business loan application letter informs the bank or lender of the amount of money needed and make a case for why you are a good investment risk.
The request letter should not be more than 2 pages. The request should be made in the first sentence including the amount required, so the lender learns what he or she needs to know without having to read the whole letter or turn to another page. This will work in your favour because it shows respect for the lenders time.
Format and Content
The loan application is generally seven major paragraphs long, with each major topic discussed in a separate paragraph. The content includes the loan amount requested, years of experience in the venture you are seeking loan for, brief information about your business, the duration for the loan, the market for your business or product, your personal investment on the venture and business or personal assets.
The Sample Application
Mrs Johnson Adebisi
Diamond Bank Plc
Re: Loan Request for N500, 000
Dear Mrs Adebisi, I am requesting a loan of Five Hundred Thousand Naira for the launch of my book entitled “There is Money in Your House”. The message of this book has been presented to over 55 Churches and Organizations.
The book entitled “There is Money in Your House”, is a book on wealth creation. The goal of writing it is to inspire people to achieve success starting with what they have.
I have 8 years of experience in the book publishing industry and have published several books. I have spent Three Hundred and Twenty Thousand Naira to publish this book.
The loan will be used to facilitate the launch, promotion and marketing of the book.
This loan will be paid back in full within 90 days.
It is a well-established fact that books on wealth creation sell like wildfire. The book will enjoy massive promotion via my radio program, social media platform, column on national newspapers and over 55 Church affiliations across Africa.
The book launch is slated to hold on November 29th 2014 between 3pm and 6pm will take place is at Oriental Hotel which is located at 3, Leeki Road, Victoria Island Land, Lagos.
My collateral consists of business assets having a fair market value of N1, 500, 00 and personal assets valued at N1, 000, 000.
To know more about the author and this exciting 118 paged book, visit www.chinedumazuh.com
I am enclosing my business plan, which details the of the loan request. You may contact me if you have any question concerning this request.
Thanks in anticipation!
_________________________ (My signature)
Chinedum Azuh is an International Empowerment Speaker, CEO The Learning Lab, Radio/TV Personality and Publisher of Hundreds of Works on Multiple Channels.
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