Business Letter Templates and Samples

What Is a Business Letter?

A Business Letter is a formal statement drafted by a company and sent to their business partners, customers, or financial institutions they work with to verify certain details, request payment, determine the professional relationship between parties that have entered into an agreement or plan to do that, and formalize the transactions after negotiations are over and business decisions are made.

Whether you were asked to provide information, you have to acknowledge arrangements or convey news, a formal Business Letter will help you to run your operations smoothly and overcome misunderstanding.

Business Letter Types

  1. Letter of Agreement. Draft this document to outline the details of your relationship with the other company and facilitate the work on the upcoming project - once the other party receives and signs the papers, this document becomes legally binding for the both of you.
  2. Audit Engagement Letter. This letter is filled out to establish which services the auditor will provide to their client before the former performs internal audit for the business.
  3. Business Proposal Letter. Typically used to introduce your organization to a potential supplier or partner and offer them to cooperate with you in the future, this document can be customized to build a strong business relationship.
  4. Invoice Letter. If you need to reach out to your client and remind them to pay for the goods or services they have already received or will receive specifying the payment details, this is the document for you.
  5. Bad Check Letter. A Bad Check Letter is composed when the business has received a check that cannot be paid because of an error on it or the lack of funds in the account of the customer and it is necessary to notify the client about their obligation to pay you still.
  6. Insurance Renewal Letter. If you represent an insurance provider, you can inform insurance policyholders about the opportunity to renew their insurance contracts before their policies expire.
  7. Payment Reminder Letter. This letter is prepared when the customer or business partner has ignored their obligation to send you payment for the invoice you have provided them with. 
  8. Bank Account Closing Letter. You may use this formal Business Letter to authorize the financial institution to close your bank account immediately or at a certain date.

How to Format a Business Letter?

To demonstrate your professionalism, commitment to legally binding obligations, and capture the attention of the reader, whether it is your business partner or customer, you should adhere to a proper Business Letter format. Here are some tips you can follow when writing a Business Letter:

  1. Opt for a widely-used and easy-to-read font - Times New Roman, Arial, or Georgia. Do not try to put all the details on one page - the smallest font size is not always ideal, so make sure you stay between ten and twelve points.
  2. Highlight the most important points with bold letters and bullet points, avoid using colors. Keep the tone formal and do not express your emotions in writing even if you believe they are justified - any formal correspondence may be used against you in the future in case of disagreements and disputes.
  3. Separate the parts of a Business Letter to make it easy to scan through - start with the greeting and introduce yourself if necessary, continue with the body part where you present the reason for writing this document and list all the details the recipient should know, and end with the call to action and your contact information to let the reader reach out to you and discuss the matter further. If you attach other documents to the letter, you can list them at the bottom of the page and explain their purpose.

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This is a written document that is drafted by one or two prospective counterparts to list the terms of a contract they are negotiating and are prepared to sign.

A business may use and send this type of letter to a customer to ask the latter to pay for the goods and services provided by the company.

This letter acts as a formal statement that is prepared by an insurance policyholder to ask their insurer to extend their insurance coverage.


An organization or private seller may use a letter such as this and send it to a client to tell the latter about a payment they are supposed to make.

A bank client may prepare a letter such as this and send it to a bank to ask the latter to close their bank account.

The purpose of this type of document is to inform an individual who has made a bad check that it has been returned by a bank and to request them to make a payment as soon as possible.

This is a document that can be used by individuals (business owners or business representatives) who would like to propose business cooperation with other businesses or clients.

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