Business letter template

A business letter can be formal or semi-formal, depending on its purpose. The specific content will vary, but it's a good idea to ensure your company follows a consistent format and structure when sending such communications. Doing so will help ensure you are seen as diligent and professional and that what you are saying is clear to the recipient.

What should be included in a business letter?

The specific content of your business letter will depend on why you are sending it in the first place. Your business letter should be as concise and to the point as possible. However, irrespective of the reason you are sending the letter and what you will write in it, you should include the following to ensure a robust, professional structure:

• The sender’s details. Include a name, ideally the department head from which the letter is coming, your company name, and address. In addition, include an email address and telephone number if you wish to give the recipient the option of contacting you via these methods.
• The date. As is standard in any letter, include the date it is written.
• The recipients' details. Include the same information about yourself and your company as you did about yourself. Leave out any information you do not know if you are writing to a company or department rather than a person.
• A reference line. Including this is a good idea as it immediately helps the reader understand your letter. If you send the letter to a company rather than a specific person, it will also help them direct it to the relevant department or person to deal with it. If your business letter relates to an ongoing matter, then you can include that here.
• A subject line. This is optional but may be helpful if you want to address a specific matter in a broader reference point.
• A salutation. If you know who you are writing to, you may opt for “Dear Mr/Ms <surname>." If you know them personally, you could even use their first name. If you do not know who you are writing to, "To whom this may concern" or "Dear <job title/department>" are fine to use.
• Your introduction should explain why you have written to them and summarize what you want your letter to achieve. For example, you might start with, "Following our meeting, I wish to confirm the terms of our agreement formally..."
• The body, or middle section, is where you get into the details of what you said in your introduction. Depending on the context of your letter, this could be a single line or several paragraphs, confirming discussions, asking questions, or clarifying things.
• The conclusion summarizes the main points, the following steps, and any deadlines or milestones to be met.
• The sign-off. Use “Yours Sincerely” and add the sender's signature, name, and position.
• Enclosures. Add this as a footnote if you enclose anything with your letter, like a non-disclosure agreement, internship agreement, or any other contract or document.

When should I use a business letter?

A business letter is helpful whenever you need to communicate with another business or individual about a general matter.

Business letters are excellent for several things, including following up on meetings or sending rejection letters to unsuccessful job applicants. They are also ideal as a cover letter if you send accompanying documents.

While business letters are a fantastic tool, check out our full range of templates to see if a specific document will better suit your needs and has a more relevant template for you to use. For example, if you are hiring someone, an offer letter will be more appropriate, and our template is set up to ensure you get all the essential information.

Why use a business letter?

Business letters are ideal for keeping communication lines open between yourself and another business or individual. In addition, it never hurts to put things in writing, even if you use business letters on a semi-formal basis.

Using business letters helps ensure your company's communication is professional and consistent and will highlight these characteristics to the recipient. Taking the time to compose a business letter shows respect for the company or person you are writing to and will make them look favorably upon your organization.

Where and how do you use a business letter?

Use a business letter whenever you need to follow up on an event an existing communication chain, or when you are looking to open dialogue with a business or individual.

Contractbook's business letter template will ensure all your business communication is structured and valuable to the reader, enabling you to do deals, hire talent, or hit your objectives.

How do you format and write a business letter?

Appearances matter. A business letter is a professional correspondence, but it won't be perceived that way if you choose a wacky font or include many typos. 

Here are some guidelines: Choose an appropriate font and font size. The bottom line is that you want an everyday, unremarkable font (such as Times New Roman, Calibri, or Arial) that won't stand out. The default font in your word processing program is an acceptable choice. 

Avoid casual language or slang. This is a formal letter, so you'll want to use more formal language. Prevent typos and grammatical errors by proofreading carefully. If you are printing out the letter, consider choosing high-quality paper. Whatever paper you choose, fold the letter carefully before placing it in the envelope. If you can, type the recipient's address on the envelope; if that's impossible, use your neatest handwriting.
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A step-by-step guide to writing a business letter 

Formatting a business letter correctly might seem a bit daunting, primarily if you’ve never or rarely written this type of letter before – perhaps you’re applying for a job for the first time, for instance, and writing a cover letter.

Here’s a quick recap of what we’ve covered so you can use it as a handy checklist:
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Step #1: Decide Whether You’re Using “Full Block Format” or “Modified Block Format.”

Try not to mix and match between these. Remember, full block format (with everything left-justified) is the more formal of the two styles – but these days, modified block format (with some elements shifted over to the right) is fine for most contexts.‍

Step #2: Include Your Address.

Your address should go left for full block format and suitable for modified block format. Don’t right-justify the text – tab across.‍

Step #3: Include the Date.

The date should go directly after your address and should be left-justified whatever format you’re using. Write it like this: “May 15, 2008”.‍

Step #4: Potentially Include a Reference Line

If you’re corresponding with a large company or have been asked to include a specific reference number in your letter, type “Re:” then the reference line. If you’re using a reference line, omit the subject line.‍

Step #5: Include the Recipient’s Name and Address

This should be left-justified, whatever format you use. Including their full name and address is essential if the letter separates from the envelope (usually in a large office). If you’re using a window envelope, make sure the recipient’s name and address are positioned to appear within the window.‍

Step #6: Include the Greeting

The greeting, sometimes called the salutation, should be followed by a colon. (E.g., “Dear Mr Jones:”) It should always be left-justified.‍

Step #7: Consider Including a Subject Line

The subject line is optional, but it’s become increasingly common practice. Your subject line should show the recipient, at a glance, what your letter is about. It can be left-justified or centered in a modified block format.‍

Step #8: Write the Letter Itself

The text of your letter should be left-justified (in all formats) and single-spaced. You should put a blank line between paragraphs rather than indenting them. Write in an appropriate business-like tone.‍

Step #9: Add an Appropriate Closing

Close your letter with a phrase like “Yours sincerely” (a safe formal option) or “Best regards” (a good choice for someone who you already know). Follow this with a comma.‍

Step #10: Add Your Name

Leave a blank space for your signature, then type your name at the end of the letter. You can put your job title and company name on the line beneath your name if appropriate.

Step #11: Use Contractbook 

Now that you know how to write a killer business letter, it’s time to scroll back to the top and let our free template do most of the work for you.
Once it’s written, editing, signing, and sending it is just as easy.