- This is an informal or formal letter including transaction fees, interest and repayment amount. Keep in mind that the law is different for consumers and commercial establishments. Remember that all the credit approvals should follow the state and federal rules. This program does not include all the disclosures required for consumer credit. If such disclosures are necessary, only a cover letter would be enough. General details referring to the disclosure forms would be discussed in the cover letter.
- This letter should inform the recipient about the approval of the loan.
- It should discuss terms and conditions for repayment.
- You could choose to offer help to the recipient with the process. A friendly note may be included.
[State, ZIP Code]
[State, ZIP Code]
[Subject: Normally bold, summarizes the intention of the letter] -Optional-
Dear [Recipients Name],
We are pleased to inform you that your car loan application for $5,000.00 has been reviewed and approved. We can offer you a payment scheme for three years at an interest rate of 7%. We expect a 5% down payment one month after loan approval, after which you will be paying the specified monthly amortization rate until the loan has been completely paid. Kindly get in touch with us at 333-3333 for confirmation and further inquiries. Ibiza Financial Services is happy to serve you.
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Sample approval letter of a car loan application.
Further things to consider when writing approval letters to debtors
Approval letters are letters written to show that a person has officially agreed to something or accepted something as satisfactory. Approval letters simply mean that something (loan, mortgage, sick leave, etc.) has been approved. There are many reasons for which approval letters may be written. Some of the common ones include giving permission at work, to approve a loan or finances, and to approve or endorse a construction project, just to mention a few.
If you are a creditor, working with a government body, or an employer with staff, chances are you will be required to know how to write an approval letter. You need to be aware of the writing style and the basic rules for writing such letters. Be friendly and relaxed and convey the message in a pleasant tone. Open the letter with a confirmation of the approval giving reasons for the approval where necessary. If the recipient is required to take further actions, state so clearly. Give all the relevant information including the contact details. Include any agreements or arrangements made. End the letter with a positive tone and a note about the service or offer where appropriate.
Letters to Debtors
Letters to debtors are letters you write to people or institutions that owe you money. Mostly, these are collection letters to inform the recipients of the defaulted payments or demand letters to warn them about eventual legal actions. These letters are usually sent after unsuccessfully trying to get your payment, and it is time to take a more serious action. If you are running a business and you have clients who haven't paid for merchandise or services, your business could suffer financial uncertainty and difficulties. But then, you want to maintain goodwill and not damage the business' s reputation in the community.
When writing letters to debtors, especially those asking for payment, you need to be professional. Start with a friendly letter and if the failure to pay continues, get progressively more serious. Provide important details about the debt - state how much is owed and when the payment should be made. For subsequent letters, use a firm tone but be considerate and professional so as not to ruin the possibility of future deals with the recipient. Recount any conversations that have happened since the first letter. End with a note of anticipation to having the situation resolved.