877.555.1234
betty@realtyserv.com
betty@realtyserv.com
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What follows is a sample cover letter for a bank loan request. Note how much information
is packed into a short letter, and that it focuses on what a banker would most want to
know. YOU CAN USE THIS COVER LETTER ON ITS OWN FOR A FIRST VISIT WITH
EACH BANK, OR IT CAN BE USED AS A COVER LETTER TO A 10-20 PAGE BUSINESS
PLAN INCLUDING CHARTS THAT YOUR BANK WILL REQUIRE AFTER THE FIRST
MEETING. WE STONGLY URGE YOU TO INCLUDE THE PERSONAL FINANCIAL
INFORMATION ATTACHMENT.
Write as you would speak, but just a little more formally. Avoid slang and contractions. Do
not try to make it too fancy. Start with a list of the main points you need to get across;
then start explaining them. Use only the three basic tenses, past, present, and future.
The fictitious company below, Contoso, Ltd., was formed in 1996 etc., is now referred to
as Adventure Works. Delete Adventure works and its fictitious president, Brian
Groth, for the real name of the business you are either buying or starting up
from scratch and substitute your name for Brian Groth's. Refer to your actual
business by its name, or "it". Use "I" or "we" only when referring to your own actions,
and “they” when referring to the actions of the individual owners. Write in the active voice
and in short sentences. PRINT THIS 3-PAGE COVER LETTER OUT BEFORE
COMMENCING TO PREPARE INFORMATION. WIDTH OF TEXT IN DOCUMENT IS
INTENDED TO BE SET AT SEVEN INCHES (i.e., set your page format settings on your
computer to accommodate a 7 inch wide text width.)
------------Start of Presentation Cover Letter-------------
Your Name
Address
City, State, Zip
Contact Phone: (xxx) xxx-xxxx
Email:
Date:
{John Doe}
Bank Manager
Bank Name
Address
City, State, Zip
FAX (if you are going to FAX)
Re: Request For Commercial Loan For Business Acquisition
Dear { Mr./Ms. Lender}:
My purpose in writing is to apply for a commercial loan to acquire an established business,
ADVENTURE WORKS. Attached are supporting documents as listed.
ADVENTURE WORKS is a ________________ {high-end design and remodeling firm} with a reputation
for integrity, quality craftsmanship, and excellence in management. In three years annual sales have
increased to be well over ________ dollars USD. {a million dollars}.
ADVENTURE WORKS was formed by Brian Groth as a {Sole Proprietorship in December 1997}. In 20__
__ a combination of activities involving _____________________ {residential design, consulting, and
general construction} brought Gross Sales of _____________ {$250,000}.
The Company experienced steady growth since its inception, and incorporated in ________, _______
{Month, Year}. In 20 __ __ Gross Sales of ____________ {$750,000} were achieved. In 20__ __ signed
contracts show that Gross Sales are expected to be ____________ {$1,300,000} The Company has its
address in leased premises at ___________ {1234 A Street, Springfield, MD 40523}. The owners are
{Brian Groth and Julie Bankert}.
------------- Start of Page Two ------------
{Your Bank}
Date
Page Two
ADVENTURE WORKS is involved in __ {four} distinct activities:
1. Architectural Design
2. Residential & Light Commercial Construction
3. Property Services
4. Retail Floor Coverings.
____ percent {Eighty to ninety percent} of the Gross Sales are in _________{design and construction}.
At the moment ____, _____(Month, Year), there are ___ {25} permanent employees on the payroll and
__ {10} subcontracted workers excluding subcontracting companies.
My Short Term Objectives within the next _____ years (within the next three years) are to purchase
ADVENTURE WORKS and increase activity in all Divisions, and to achieve annual profit, net after taxes,
of _______ {$200,000} by 20__ __. My Long term objectives are: to maintain the level of current
business achieved up to the new levels that will be established three years from now, and then to move
into ________________________ {historical restorations, more light commercial work, and increased
new custom home construction}.
To implement these objectives I will need {1 and 2 to be filled-in by an accountant} :
1. A fixed rate capital loan of _____________ {$100,000} at Prime plus 2%. This loan to be used for
acquisition of ADVENTURE WORKS and current near term expenses including working capital {this is
your own take-home pay before taxes plus company expenses not covered by immediate income of the
company} as well as __________________, ______________ and ____________. It will be repaid in
_______ {five years}. I expect that my total cost to obtain this loan will be no more than _____ (one
percent) loan origination fees plus $__________ additional fees.
2. An unsecured line of credit of _____________{$50,000} to take advantage of discounts available,
avoid associated penalties, and expand into high profit areas requiring positive cash flow.
The prospects for ADVENTURE WORKS’ continued growth are excellent, with ___ {the number of }
______________{construction and design contracts underway already exceeding $550,000}.
Note: It is absolutely imperative that the following paragraph numbers be filled-in in consultation with co-
owners of your personal assets such as a spouse, as well as your attorney and your accountant prior to
sharing this information with any lender. For equity the
company has assets of ________ {$227,000, the amount to be determined by your accountant, not the
seller and not your bank!}. Additionally, I, as prospective owner am willing to provide a down payment in
cash of $______________, and to offer as collateral (consider whether you want to offer this without
negotiating a deal first )a second mortgage on my residence with an estimated equity of ________
{$150,000}. The address of this residence is ____________________________________ {456 Oak
Dr., Mt. Vernon, CA 31304.}
----------- Start of Page Three ----------
{Your Bank}
Date
Page Three
The company's overall objective is to satisfy that market segment that demands integrity and quality
construction, and to maintain a steady growth in sales volume that will sustain the company for twenty
years. _______{Brian Groth, the current owner} has enhanced his reputation to the point where the
company is regarded by many _______ {architects as the recommended choice with their clients due to
the excellence of its craftsmen and management}.
Market research shows that the population in __________ {Springfield} has increased by {200,000}
between {1999 and 20__ __}. This increase in population brought about an increase of _____ {19,850}
new homes valued at over ______ {three billion dollars}. Demographic estimates published by the
{State Office of Financial Management, 20_ _ }, indicate that an additional 20,000 persons will need to
be housed between this year and 2020. ADVENTURE WORKS intends to pursue this market vigorously.
Financial Objectives
The financial objectives of ADVENTURE WORKS over the next few years are as follows:
200__ 200__ - 2010
Sales {$7,000,000} {$10,000,000}
Net Income after Tax {$500,000} {$1,000,000}
Please review the enclosed business plan and loan proposal, and of course feel free to ask for any
additional information or explanations you may want. I will call you in about one week's time to arrange
an appointment so that we can discuss the loan in person.
I look forward to a mutually profitable relationship with the {Woodgrove} Bank.
Sincerely,
Brian Groth
Attachments {strongly suggested}
• ADVENTURE WORKS Articles of Incorporation
• ADVENTURE WORKS Current Balance Sheet
• ADVENTURE WORKS Most Recent Annual Profit and Loss (P & L) and P & L for year-to-date.
• ADVENTURE WORKS Owner and Staff Salaries broken out by each employee
• Present Data and forecast for future population and income changes in both City and County
(available from city/county/State Finance Office government offices via email or phone call or from your
local reference librarian)
• Your current resume with employment history /educational attainment/business ownership
experience if any
• An advisor-approved, completed, signed copy of the Personal Financial Statement below.
---------- Start of Personal Financial Statement Attachment ---------
Personal Financial Statement of {Enter Your Name Here}
As of Date: { mm/dd/yyyy }
Assets Amount in U.S.Dollars (Round Off)
Cash - checking accounts $ -
Cash - savings accounts -
Certificates of deposit -
Securities - stocks / bonds / mutual funds -
Notes & contracts receivable -
Life insurance (cash surrender value) -
Personal property (autos, jewelry, etc.) -
Retirement Funds (eg. IRAs, 401k) -
Real estate (market value) -
Other assets (specify) -
Other assets (specify) -
Total Assets $ -
Liabilities Amount in U.S. Dollars (Round Off)
Current Debt (Credit cards, Accounts) $ -
Notes payable (describe below) -
Taxes payable -
Real estate mortgages (describe) -
Other liabilities (specify) -
Other liabilities (specify) -
Total Liabilities $ -
Net Worth $ - Initials _______
Personal Financial Statement of {Enter Your Name Here}, continued
As of Date: { mm/dd/yyyy }
Initials ________
Details
(Rounded U.S. Dollars)
1. ASSETS – Details
From Whom Owing Balance Owing Original Amount Original Date Monthly Payment
Maturity Date History / Purpose
$ - $ - $ -
Securities: stocks / bonds / mutual funds
Name of Security Number of Shares Cost Market Value Date of Acquisition
$ - $ -
Stock in Privately Held Companies
Company Name No. of shares $ Invested Est. Market Value
$ - $ -
Real Estate
Description / Location Market Value Amount Owing Original Cost Purchase
Date
$ - $ - $ -
Initials _______
Personal Financial Statement of {Enter Your Name Here}, continued
As of Date: { mm/dd/yyyy }
Initials ______
Credit Card & Charge Card Debt
Name of Card / Creditor Amount Due
$ -
Notes Payable (excluding monthly bills)
Name of Creditor Amount Owing Original Amount Monthly Payment Interest Rate
Secured by (Lien)
$ - $ - $ -
Mortgage / Real Estate Loans Payable
Name of Creditor Amount Owing Original Amount Monthly Payment Interest Rate
Secured by (Lien)
$ - $ - $ -
I hereby attest that this Personal Financial Statement is accurate as of this date
to the best of my information, knowledge and belief.
Print Name: ______________________
Loan Applicant Signature ____________________ Date _____________
Credit: Adapted in part from SCORE of the U.S. Small Business Administration 2008
Copyright 2008 by 321BuyBiz.com. All Rights Reserved.
is packed into a short letter, and that it focuses on what a banker would most want to
know. YOU CAN USE THIS COVER LETTER ON ITS OWN FOR A FIRST VISIT WITH
EACH BANK, OR IT CAN BE USED AS A COVER LETTER TO A 10-20 PAGE BUSINESS
PLAN INCLUDING CHARTS THAT YOUR BANK WILL REQUIRE AFTER THE FIRST
MEETING. WE STONGLY URGE YOU TO INCLUDE THE PERSONAL FINANCIAL
INFORMATION ATTACHMENT.
Write as you would speak, but just a little more formally. Avoid slang and contractions. Do
not try to make it too fancy. Start with a list of the main points you need to get across;
then start explaining them. Use only the three basic tenses, past, present, and future.
The fictitious company below, Contoso, Ltd., was formed in 1996 etc., is now referred to
as Adventure Works. Delete Adventure works and its fictitious president, Brian
Groth, for the real name of the business you are either buying or starting up
from scratch and substitute your name for Brian Groth's. Refer to your actual
business by its name, or "it". Use "I" or "we" only when referring to your own actions,
and “they” when referring to the actions of the individual owners. Write in the active voice
and in short sentences. PRINT THIS 3-PAGE COVER LETTER OUT BEFORE
COMMENCING TO PREPARE INFORMATION. WIDTH OF TEXT IN DOCUMENT IS
INTENDED TO BE SET AT SEVEN INCHES (i.e., set your page format settings on your
computer to accommodate a 7 inch wide text width.)
------------Start of Presentation Cover Letter-------------
Your Name
Address
City, State, Zip
Contact Phone: (xxx) xxx-xxxx
Email:
Date:
{John Doe}
Bank Manager
Bank Name
Address
City, State, Zip
FAX (if you are going to FAX)
Re: Request For Commercial Loan For Business Acquisition
Dear { Mr./Ms. Lender}:
My purpose in writing is to apply for a commercial loan to acquire an established business,
ADVENTURE WORKS. Attached are supporting documents as listed.
ADVENTURE WORKS is a ________________ {high-end design and remodeling firm} with a reputation
for integrity, quality craftsmanship, and excellence in management. In three years annual sales have
increased to be well over ________ dollars USD. {a million dollars}.
ADVENTURE WORKS was formed by Brian Groth as a {Sole Proprietorship in December 1997}. In 20__
__ a combination of activities involving _____________________ {residential design, consulting, and
general construction} brought Gross Sales of _____________ {$250,000}.
The Company experienced steady growth since its inception, and incorporated in ________, _______
{Month, Year}. In 20 __ __ Gross Sales of ____________ {$750,000} were achieved. In 20__ __ signed
contracts show that Gross Sales are expected to be ____________ {$1,300,000} The Company has its
address in leased premises at ___________ {1234 A Street, Springfield, MD 40523}. The owners are
{Brian Groth and Julie Bankert}.
------------- Start of Page Two ------------
{Your Bank}
Date
Page Two
ADVENTURE WORKS is involved in __ {four} distinct activities:
1. Architectural Design
2. Residential & Light Commercial Construction
3. Property Services
4. Retail Floor Coverings.
____ percent {Eighty to ninety percent} of the Gross Sales are in _________{design and construction}.
At the moment ____, _____(Month, Year), there are ___ {25} permanent employees on the payroll and
__ {10} subcontracted workers excluding subcontracting companies.
My Short Term Objectives within the next _____ years (within the next three years) are to purchase
ADVENTURE WORKS and increase activity in all Divisions, and to achieve annual profit, net after taxes,
of _______ {$200,000} by 20__ __. My Long term objectives are: to maintain the level of current
business achieved up to the new levels that will be established three years from now, and then to move
into ________________________ {historical restorations, more light commercial work, and increased
new custom home construction}.
To implement these objectives I will need {1 and 2 to be filled-in by an accountant} :
1. A fixed rate capital loan of _____________ {$100,000} at Prime plus 2%. This loan to be used for
acquisition of ADVENTURE WORKS and current near term expenses including working capital {this is
your own take-home pay before taxes plus company expenses not covered by immediate income of the
company} as well as __________________, ______________ and ____________. It will be repaid in
_______ {five years}. I expect that my total cost to obtain this loan will be no more than _____ (one
percent) loan origination fees plus $__________ additional fees.
2. An unsecured line of credit of _____________{$50,000} to take advantage of discounts available,
avoid associated penalties, and expand into high profit areas requiring positive cash flow.
The prospects for ADVENTURE WORKS’ continued growth are excellent, with ___ {the number of }
______________{construction and design contracts underway already exceeding $550,000}.
Note: It is absolutely imperative that the following paragraph numbers be filled-in in consultation with co-
owners of your personal assets such as a spouse, as well as your attorney and your accountant prior to
sharing this information with any lender. For equity the
company has assets of ________ {$227,000, the amount to be determined by your accountant, not the
seller and not your bank!}. Additionally, I, as prospective owner am willing to provide a down payment in
cash of $______________, and to offer as collateral (consider whether you want to offer this without
negotiating a deal first )a second mortgage on my residence with an estimated equity of ________
{$150,000}. The address of this residence is ____________________________________ {456 Oak
Dr., Mt. Vernon, CA 31304.}
----------- Start of Page Three ----------
{Your Bank}
Date
Page Three
The company's overall objective is to satisfy that market segment that demands integrity and quality
construction, and to maintain a steady growth in sales volume that will sustain the company for twenty
years. _______{Brian Groth, the current owner} has enhanced his reputation to the point where the
company is regarded by many _______ {architects as the recommended choice with their clients due to
the excellence of its craftsmen and management}.
Market research shows that the population in __________ {Springfield} has increased by {200,000}
between {1999 and 20__ __}. This increase in population brought about an increase of _____ {19,850}
new homes valued at over ______ {three billion dollars}. Demographic estimates published by the
{State Office of Financial Management, 20_ _ }, indicate that an additional 20,000 persons will need to
be housed between this year and 2020. ADVENTURE WORKS intends to pursue this market vigorously.
Financial Objectives
The financial objectives of ADVENTURE WORKS over the next few years are as follows:
200__ 200__ - 2010
Sales {$7,000,000} {$10,000,000}
Net Income after Tax {$500,000} {$1,000,000}
Please review the enclosed business plan and loan proposal, and of course feel free to ask for any
additional information or explanations you may want. I will call you in about one week's time to arrange
an appointment so that we can discuss the loan in person.
I look forward to a mutually profitable relationship with the {Woodgrove} Bank.
Sincerely,
Brian Groth
Attachments {strongly suggested}
• ADVENTURE WORKS Articles of Incorporation
• ADVENTURE WORKS Current Balance Sheet
• ADVENTURE WORKS Most Recent Annual Profit and Loss (P & L) and P & L for year-to-date.
• ADVENTURE WORKS Owner and Staff Salaries broken out by each employee
• Present Data and forecast for future population and income changes in both City and County
(available from city/county/State Finance Office government offices via email or phone call or from your
local reference librarian)
• Your current resume with employment history /educational attainment/business ownership
experience if any
• An advisor-approved, completed, signed copy of the Personal Financial Statement below.
---------- Start of Personal Financial Statement Attachment ---------
Personal Financial Statement of {Enter Your Name Here}
As of Date: { mm/dd/yyyy }
Assets Amount in U.S.Dollars (Round Off)
Cash - checking accounts $ -
Cash - savings accounts -
Certificates of deposit -
Securities - stocks / bonds / mutual funds -
Notes & contracts receivable -
Life insurance (cash surrender value) -
Personal property (autos, jewelry, etc.) -
Retirement Funds (eg. IRAs, 401k) -
Real estate (market value) -
Other assets (specify) -
Other assets (specify) -
Total Assets $ -
Liabilities Amount in U.S. Dollars (Round Off)
Current Debt (Credit cards, Accounts) $ -
Notes payable (describe below) -
Taxes payable -
Real estate mortgages (describe) -
Other liabilities (specify) -
Other liabilities (specify) -
Total Liabilities $ -
Net Worth $ - Initials _______
Personal Financial Statement of {Enter Your Name Here}, continued
As of Date: { mm/dd/yyyy }
Initials ________
Details
(Rounded U.S. Dollars)
1. ASSETS – Details
From Whom Owing Balance Owing Original Amount Original Date Monthly Payment
Maturity Date History / Purpose
$ - $ - $ -
Securities: stocks / bonds / mutual funds
Name of Security Number of Shares Cost Market Value Date of Acquisition
$ - $ -
Stock in Privately Held Companies
Company Name No. of shares $ Invested Est. Market Value
$ - $ -
Real Estate
Description / Location Market Value Amount Owing Original Cost Purchase
Date
$ - $ - $ -
Initials _______
Personal Financial Statement of {Enter Your Name Here}, continued
As of Date: { mm/dd/yyyy }
Initials ______
Credit Card & Charge Card Debt
Name of Card / Creditor Amount Due
$ -
Notes Payable (excluding monthly bills)
Name of Creditor Amount Owing Original Amount Monthly Payment Interest Rate
Secured by (Lien)
$ - $ - $ -
Mortgage / Real Estate Loans Payable
Name of Creditor Amount Owing Original Amount Monthly Payment Interest Rate
Secured by (Lien)
$ - $ - $ -
I hereby attest that this Personal Financial Statement is accurate as of this date
to the best of my information, knowledge and belief.
Print Name: ______________________
Loan Applicant Signature ____________________ Date _____________
Credit: Adapted in part from SCORE of the U.S. Small Business Administration 2008
Copyright 2008 by 321BuyBiz.com. All Rights Reserved.
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