WRITING GUIDE

Readers who do not yet have the advantage of knowing you will judge you by your writing.
Pay some attention to what you say and how you say it. 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.
Write as you would speak, but just a little more formally. void slang and contractions. !o not
try to make it too fancy. "tart with a list of the main points you need to get across# then start
e$plaining them. %se only the three basic tenses, past, present, and future. Refer to your
business by its name, or &it&. 'hus, (ontoso, )td. was formed in *++, etc., is now called
dventure Works. %se &-& or &we& only when referring to the actions of the individual owners.
Write in the active voice and in short sentences.
Executive Summary
!./N'%R/ W0R1" is a high2end design and remodeling firm with a reputation for integrity,
quality craftsmanship, and e$cellence in management. -n three years annual sales have
increased to be well over a million dollars.
!./N'%R/ W0R1" was formed by 3rian 4roth as a "ole Proprietorship in !ecember *++5. -n
*++6 a combination of activities involving residential design, consulting, and general
construction brought 4ross "ales of 789:,:::.
'he (ompany e$perienced steady growth since its inception, and incorporated in ;arch *+++,
<see ppendi$ ,, rticles of -ncorporation=. -n *+++ 4ross "ales of 759:,::: were achieved. -n
8:::, signed contracts show that 4ross "ales are e$pected to be 7*,>::,::: <see ppendi$ 8,
current 3acklog=.
'he (ompany has its address in leased premises at *8>? "treet, "pringfield, ;! ?:98>. -ts
activities fall under the "tandard -ndustrial (lassification "-( *98* and *988. 'he owners are
3rian 4roth and @ulie 3ankert.
!./N'%R/ W0R1" is involved in four distinct activitiesA
*. rchitectural !esign
8. Residential B )ight (ommercial (onstruction
>. Property "ervices
?. Retail Cloor (overings <see ppendi$ ?=.
/ighty to ninety percent of the 4ross "ales are in design and construction. t the moment
<;ay 8:::=, there are 89 permanent employees on the payroll and *: subcontracted workers
e$cluding subcontracting companies <see ppendi$ * for resumes=.
'he companyDs "hort 'erm 0bjectives <within the ne$t three years= are to increase activity in
all !ivisions, and to achieve annual profit, net after ta$es, of 78::,::: by 8::9. -ts )ong term
objectives areA to maintain the level of current business achieved up to 8::9, and then to
move into historical restorations, more light commercial work, and increased new custom
home construction.
'o implement these objectives the company needsA
1. loan of 7*::,::: at Prime plus 8E. 'his loan to be used for current near term
e$penses including FFFFFFFFFFFFFFFFFF, FFFFFFFFFFFFFF and FFFFFFFFFFFF -t will be
repaid in five years.
2. line of credit of 79:,::: to take advantage of discounts available, avoid associated
penalties, and e$pand into high profit areas requiring positive cash flow.
'he prospects for !./N'%R/ W0R1"G continued growth are e$cellent, with 8::: construction
and design contracts underway already e$ceeding 799:,::: <see ppendi$ 8, 3acklog 8:::=.
Cor equity the company has assets of 7885,::: <see ppendi$ +, 3alance "heet as of
mmHddH8::>=. dditionally, the companyDs owners are willing to offer as collateral a second
mortgage on a residence with an estimated equity of 7*9:,:::. 'he address of this residence
is ?9, 0ak !r., ;t. .ernon, ( >*>:?.
'he companyDs 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. 3rian 4roth 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 e$cellence of its craftsmen and management.
;arket research shows that the population in "pringfield has increased by 8::,::: between
*+69 and 8::>. 'his increase in population brought about an increase of *+,69: new single
family homes valued at over three billion dollars. 'his increase gives the area over *86,:::
e$isting homes as a potential remodeling market. !emographic estimates published by the
"tate 0ffice of Cinancial ;anagement, 8::8, indicate that an additional 8:,::: persons will
need to be housed between 8::8 and 8:8:. !./N'%R/ W0R1" intends to pursue this market
vigorously. <"ee ppendi$ 5 for data on anticipated changes in the population of the (ounty=.
Financial Objectives
'he financial objectives of !./N'%R/ W0R1" over the ne$t few years are as followsA
2005 2005-2010
Sales 75,:::,::: 7*:,:::,:::
Net Income after Tax 79::,::: 7*,:::,:::
Please review the enclosed business plan and loan proposal, and of course feel free to ask for
any additional information or e$planations you may want. - will call you in about one weekDs
time to arrange an appointment so that we can discuss the loan in person.
- look forward to a mutually profitable relationship with the Woodgrove 3ank.
"incerely,
3rian 4roth