What are Business Letters: Types, Tips, and Format

Last Updated: December 6, 2023

Business letters are important for professional communication, playing a pivotal role in the corporate landscape. These formal documents serve as a structured means of conveying information, requests, or proposals between individuals, organizations, or other stakeholders.

Business letters embody a standard of clarity, professionalism, and etiquette, making them a fundamental tool for effective communication in the business environment. In this article, you will learn more about business letter writing, its types, and how you can create letters for professional communication.

What are Business Letters and Why are They Important?

A business letter is a type of formal letter used by companies for professional correspondence with their clients, employees, stakeholders, or any other individual. The business letter can be used for multiple purposes such as promoting your product, sending event invitations, company collaboration invites, thanksgiving notes, etc.

The importance of business letters lies in the fact that they are a formal method of sharing information through which professional relationships are maintained with clients and organizations. Moreover, it is shared in a written form which can be used as a future reference for the information shared professionally.

Types of Letters in Business Communication

There are different types of business letters available that you can use to communicate professionally. Some of the most popular ones include Office memorandum Welcome Letters, Request Letters, Announcement Letters, Termination letters, etc. Here are some other important business letters enumerated in detail:

  • Cover Letters: It is a business letter sent by the candidate along with the resume when applying for a job. It helps candidates with their professional experience, qualifications, and in communicating about why they are interested in the applied job.
  • Recommendation Letters: A letter of recommendation is provided to an individual by another professional verifying their work ethics, qualifications, and expertise.
  • Business Invites: These letters are a formal way of reaching an individual or a company for inviting them to an event. The letter should be written in a way that builds excitement and anticipation among the invitees.
  • Complaint Letter: This business letter type is used for raising concerns and grievances related to a product or service. It is used to address the issue and seek solution.
  • Order Letters: Order letter is an official letter that approves the sale and purchase of goods and services and provides their specifications. These are legal documents that record the transaction between the parties involved.
  • Resignation Letter: This type of letter is used by employees to inform their employer about their resignation and the reason behind it. Resignation letter includes declaration of resignation, reason for resigning, last working day, and a thank you note.
  • Offer Letters: An offer letter is provided to a candidate once he has been selected for the open position. The letter specifies salary package, designation, posted department, hand all the benefits he will be getting in case he joins the company.
  • Sales Letters: A sales letter in business communication is used for introducing a product or service to your customers. Sales teams often use these letters for contacting potential buyers or promoting products to the existing clientele.

Business Letter Format and How to Write One

Using a precise format is essential for the look and readability of a business letter. If you are planning to write business communication letter, these business communication letter formats will help you in creating an effective document:

  • Opening: The opening of the letter will include your mail address, complete date, recipient’s name, company, and address. Skip one line in between your address, recipient’s info, and date. You do need to add your address if you are using a letterhead that has it.
  • Salutation: Address your recipient via “Dear, along with their title and their late name “Dear Mr. Granger.” In case you don’t know their gender, mention their complete name like “Dear Taylor Dean.” Make sure to add a colon when salutation ends.
  • Body: Start your first para by mentioning yourself and the intent of your letter. The next paragraphs should highlight the details of the main point. The last paragraph should restate the purpose of the letter and should provide a call to action needed.
  • Closing: Your letter should conclude with formal closings like “Sincerely” or “Yours truly.” If it is an informal letter, you can use closings like “Cordially” or “Best regards.” Make sure you add a comma to the end of it.
  • Signature: After closing, skip four lines and add your name. Next, skip one more line and add your job title and organization name. In case you are sending a hard copy, then sign your name in the space with blue or black ink.
  • Enclosures: Under this, you need to attach documents and list them here properly.

Tips on Writing Business Letters

While writing a business communication letter, make sure you check all the information is correct before sending it. Moreover, try to be precise and complete your letter on a single page. Here are a few more tips you can follow to write an effective business letter:

  • Keep the letter short and simple and avoid using technical jargons
  • Use the right tone depending on the letter type like formal, informal, assertive, or humorous.
  • Check the letters a couple of times for spelling and grammatical errors
  • Carefully plan your letter by jotting down all the important points to be covered in the letter
  • Proofread the letter content and remove unnecessary words and phrases
  • Avoid using discriminatory language related to any gender, race, or religion.

Business Letter Templates

Here are some of the most common business letter templates that you can use for creating professionally looking business communication letters.

1. Sales Letter Template

A sales letter is used to convince the reader to take specific action, for example, to buy a product or service. A well-written sales letter can be a great tool for businesses to increase sales and manage business relationships.

2. Offer Letter Template

An offer letter is like a formal document that consists of the terms of employment. It serves as an agreement between the employee and employers with details like salary, benefits, and other details of the job.

3. Letter of Recommendation Template

The letter of recommendation is a document written by someone who can testify the skills, qualifications and the characteristics of an individual. This letter is mainly used to support scholarships, jobs and academic programs.

4. Termination Letter

The letter of termination or termination letter or notice of termination is a document that addresses the end of employment or any other business partnerships between two parties. For example, an employer can give a letter of termination to his employee stating that he/she has been terminated from the job.

5. Complaint Letter Template

Complaint letter is a written communication that raises any concerns about the products or services or any other grievances. The purpose of this letter is to seek resolution for any issue.

6. Cover Letter

Cover letter or CV is a one-page (250-350 words) letter that you attach with your resume while applying for a job. This persuasive document explains why you are a good fit for that position or the job.

7. Thank You Letter Template

As the name suggests, a thank you letter is a formal document that expresses your appreciation for someone’s assistance or actions. You can send a thank you letter after any interview, meeting, or after receiving any gift or any other act of kindness.

8. Business Invites

Business invites or the Business Invitation letter is a formal way to invite people, groups, company or any individual to attend a meeting or an event.

Top Software for Writing Business Communication Letters

There are different types of software that provide multiple tools and templates to write professional-looking business letters. The templates provided by these tools make it easier to create business letters quickly. Here are some of the recommended ones:

Conclusion

FAQs

  1. What is the basic format of a business letter?

    Block format is one of the most common layouts used for creating a business letter. Using this format, the entire letter is on the left side and there is only single space used all over except between the paragraphs.

  2. What is a business letter for?

    A business letter is generally used for providing information to clients related to a deal, or for business communications. It can also be used for discussing prior negotiations.

  3. What is the importance of a business letter?

    A business letter is important for exchanging information with other organizations, employees, and clients in a professional way.

  4. What is a job application letter in business communication?

    A job application letter is a type of letter sent to potential employers to provide information like qualifications, skills, experience, and expertise while applying for a job.

  5. What are business letter examples?

    Some common examples of business letters include job offer letters, cover letters, investor interest letters, resignation letters, shareholder letters, letters of recommendation, etc.

Published On: December 6, 2023
Varsha

Varsha is an experienced content writer at Techjockey. She has been writing since 2021 and has covered several industries in her writing like fashion, technology, automobile, interior design, etc. Over the span of 1 year, she has written 100+ blogs focusing on security, finance, accounts, inventory, human resources, etc. Her expertise is centered around writing articles on cloud computing, cloud migration, and data security. Being a keen learner, she is constantly improving herself in the field of software and technology.

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