One of the challenges faced by faced by start-ups is fning money to fund the company and also run their homes. If you are facing financial challenges with your business, be aware that most entrepreneurs out there are faced with exactly the same issues as you are. At first, most businesses do not make money. In fact, many businesses lose money at first and must find a way to make it through the beginning stages of their businesses, and either raises money or find a way for the business to generate the revenue and profit to solve the financial hardships.
Business Hardship Letters are better termed as financial hardship letters. This kind of letters is sent when the business is in loss or isn’t able to come back to normal level of productivity. In major cases, these letters are sent when the business faces financial troubles in ways of input or output of production.Such letters are sent to creditors like banks or loan giving credentials or those organizations that help to pay off the loans. The hardship letter focuses on message conveyance through which the existing credit line is increased or problem on credits is helped to be stabilized. These letters are also a way to make the interest rate to a minimal level.
Tips to write a Business Hardship Letter
- It is essential to print the letter in Company letterhead paper.
- Make the subject line clear and direct mentioning the name of the company
- Use bullet points to state the immediate and present needs.
- describe the percentage of losses or rate of loss, any such numerical value in percentages.
Template
Use our free Business Hardship Letter to help you get started.
From,
__________
__________
__________
__________
Date: _____
To,
__________
__________
__________
__________
Subject: Regarding request for debt amalgamation
Respected Sir/Ma’am,
__________ (name of the company) is in collaboration with your esteemed company after 5 years of its emergence. The purpose of this letter is to kindly request your help in navigating our operations during this tight financial hardship period.
Our company produces branded in demand ____________ (name of the products). Unfortunately, we are suffering from great losses due to demonetization.The base reason when analyzed for our downfall is that________ (the factor). More than 30% of our products are been neglected due to high-cost price and can’t compromise on the rates of selling.We hereby request three needs from your company:
- We would like your help in paying off our debts and in return, we would pay you with the nominal rates of interests imposed by you.
- Secondly, we request for the extension in our existing product wings of credit Rs. 5 Crore to Rs. 50 Crore for which, we will deal profitably with cash flow in next few months without any negative downfall impacts on any operations.
- Finally, we request you to provide overtime or relatable job areas to our workers who were terminated due to current situations.
Please find the attachment of financial statement guides and bills from last few years and assess them to help us effectively.On behalf of our team, we are grateful to you. We look forward from hearing from you.Thank you.
Yours sincerely,
__________
(name of the sender)
Sample Letter
From,
Renolds Mathew,
Chief Operational officer,
Marriot Group of Companies,
Stanford.
Date: 18 March 2017
To,
Regina Thomas,
Chief Executive Officer,
Mangalam Group of Companies Est.,
Stanford.
Subject: Regarding request for debt amalgamation
Respected Ma’am,
Marriot Group of Companies is in collaboration with your esteemed company after 5 years of its emergence. The purpose of this letter is to kindly request your help in navigating our operations during this tight financial hardship period.
Our company produces branded in demand Psychological tool equipment. Unfortunately, we are suffering from great losses due to demonetization. The base reason when analyzed for our downfall is that the products costs are hiking. More than 30% of our products are been neglected due to high-cost price. Which we cannot reduce the rates of selling. We have already brought the products and now cannot be returned as well.
We have been positively motivated by industry expert analysts we can move from this situation in a gradual but also swift manner.We hereby request three needs from your company:
We would like your help in paying off our debts and in return, we would pay you with the nominal rates of interests imposed by you. If this is done our new branch which is upcoming will be lifted soon and 80%profit rates would return on that investment.
Secondly, we request for the extension in our existing product wings of credit Rs. 5 Crore to Rs. 50 Crore. In this new means, we will deal profitably with cash flow in next few months without any negative downfall impacts on any operations.
Finally, we request you to provide overtime or relatable job areas to our workers. Due to our current situation, we had to terminate few workers with outstanding capabilities.
We have attached our financial statement guides and bills from last few years so that you could assess them to help us effectively. You could even draw the conclusion that the previous year’s sales were Rs. 6.8 Crore. We are expecting to sell at least 70% of them by the next sessional year.On behalf of our team, we are grateful to you to look forward.We look forward from hearing from you.Kindly contact for any further information required.
Yours sincerely
Renolds Mathew
Chief Operational officer
Attachment: credentials official statements
Email Format
The following is the Email Format that should be followed while writing a Business Hardship Letter.
To: name@email.com
From: name@email.com
Subject: Regarding request for debt amalgamation
Respected Sir/Ma’am,
__________ (name of the company) is in collaboration with your esteemed company after 5 years of its emergence. We will be completing 12 years of completion by the end of this week. The purpose of this letter is to kindly request your help in navigating our operations during this tight financial hardship period.
Our company produces branded in demand ____________ (name of the products). Unfortunately, we are suffering from great losses due to demonetization or ______ (state the reason for downfall). The base reason when analyzed for our downfall is that________ (the factor). More than 30% of our products are been neglected due to high-cost price. Which we cannot reduce the rates of selling. We have already brought the products and now cannot be returned as well. We are having a positive belief this is a temporary session. We have been positively motivated by industry expert analysts we can move from this situation in a gradual but also swift manner.We hereby request three needs from your company which will be flexible by providing relief to us.
We would like your help in paying off our debts and in return, we would pay you with the nominal rates of interests imposed by you. If this is done our new branch which is upcoming will be lifted soon and 80%profit rates would return on that investment.
Secondly, we request for the extension in our existing product wings of credit Rs. 5 Crore to Rs. 50 Crore. In this new means, we will deal profitably with cash flow in next few months without any negative downfall impacts on any operations.
Finally, we request you to provide overtime or relatable job areas to our workers. Due to our current situation, we had to terminate few workers with outstanding capabilities.
We have attached our financial statement guides and bills from last few years so that you could assess them to help us effectively. You could even draw the conclusion that the previous year’s sales were Rs. 6.8 Crore. We are expecting to sell at least 70% of them by the next sessional year.On behalf of our team, we are grateful to you to look forward and henceforth take the time to give hand in a timely manner. We look forward from hearing from you. Kindly, contact for any further information required.
Yours sincerely,
___________
(Name of the sender)
(Designation)
Attachment: credentials (name of the file attached)