A business loan application is one that is written by an individual or a company to a financial institution or a bank while obtaining a business loan. The letter should be precise and provide brief details of the business and other vital details such as loan amount being requested, period of loan etc. A sample of such letter is given below for reference.
Sample Business Loan Application Letter
London Banking Corporation,
#4, Plymouth, Devon,
Date : 1st August 2014
Sub :- Application for business loan
I am writing this letter to present my application for business loan to your bank. I am a small business executive and require this business loan for expansion of my business in other regions. My company is into manufacture of chemicals which act as the base raw materials for pharmaceutical companies. We are now planning to expand as I have received more orders for this raw material from many pharmaceutical companies.
Due to paucity of funds I am unable to expand my business which requires investment into buying required machinery and equipment for handling this additional production needs. I require a business loan of 2, 00,000 pounds for a period of one year from your bank to fulfill this machinery and equipment purchase. I am at present having orders worth 25,000 pounds per month and can easily repay this loan within a matter of one year.
I am attaching the quotation details of the equipment and machinery cost and other needed details along with this letter. I hope that your bank will consider my business loan application and give me a positive reply soon.