How to Write a Loan Request Letter

If you’re requesting to borrow money for your business, then it’s time to learn how to write a loan request letter. A business loan request letter is a correspondence to potential lenders which you include with your application package. This is a necessary step when applying to any conventional bank, as well, the SBA recommends you begin with a proposal cover letter or executive summary. This will show that your business is viable, that you are low-risk, why you should be approved, and how you plan to pay it back.

Some cases you won’t need a loan request letter and financial statements might be enough.

  • If you are applying to an alternative lender for a term-loan
  • If you’re borrowing for equipment, where the equipment itself is the collateral
  • If you are asking for a business line of credit

Prerequisites to Loan Application and Request Letter

A good request letter is needed for most loan application packages, but what is most essential is stable credit and a solid plan. Before writing your letter, check on your personal and business credit scores, making any possible moves to improve them, no matter your current situation. Also get organized and prepare your financial statements, this will include:

  • Income statements (or “profit and loss statements”)
  • Balance statements
  • Cash flow statements

Letter Format

When writing a business loan request letter, proper formatting is a must. It’s best practice keeping to a single page, and begin with a heading. A heading has:

  • Your name and contact information
  • Date of Submission
  • Subject line indicating that this is a loan request and stating the dollar amount
  • Greeting

Business Loan Request Letter Summary: What Does Your Letter Say?

First, briefly explain the purpose of your letter and the amount you wish to borrow. Next, tell your lender about your business. They’ll want to know:

  • Legal name of your company 
  • Legal structure (LLC, S-corp, sole-proprietor, partnership, etc.)
  • Short description of what your business does
  • How long you’ve been in business
  • Number of employees
  • Annual profit

Elaborate on the purpose of your loan. 

Be specific, telling how you plan to use it. If you will need it to advertise, then give actual figures supporting how you project this to help grow your business. How will you advertise, what are the costs, and what are the projected increases to profit or customer base? Give specific numbers and data.

Summary Your Ability to Repay

Review your credit and financial history, reflect on highlights that reflect that you’re a smart investment for the lender. Summarize previous profits and losses which indicate your small business is growing, as well as payment schedules for any other debts you may have. Give cash-flow projections indicating when you expect to be ready for budgeting repayments, accounting for interest and principle.

Conclude Your Letter

Write a short paragraph that refers to the financial statements attached to your application package. In another short paragraph ask your loan officer to review your package and express your anticipation for talking with them further. 


Using a letter template will guarantee your loan request letter will be suitably formatted and looking pro, but it will also make life much easier when writing it. Online sites like LiveCareer and provide great resources, or you can search the web for sample letters which can help guide you.

Loan request letters are a necessity in applying for financing for your small business from your bank or the SBA. A well-written letter can maximize your credit score, but it will also add muscle to your application package and help convince the loan officer the worth of your business and that you’re a good risk to take.

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