A business reference letter is a document that includes a recommendation. It is provided on behalf of a vendor, a client or any other type of business associate. You have to provide such a letter at some point.
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When to use a business reference letter?
A business reference letter is a written recommendation issued by one entity on behalf of another entity. This entity can be an individual or an organization. This letter verifies the quality of goods and services offered by the organization or individual to a potential client who wants to hire them. Without reference or business recommendation letters, it can be extremely challenging to compete as they are so many businesses available these days.
As a business owner, you know that there are a lot of employers who want to learn more about your business and your reputation. The written references or recommendations are the best way to inform them about your business. Therefore, before knocking on the doors of clients or businesses you want to offer your services to, it is important to have a company recommendation letter.
A business reference letter can also be used when looking for a new job, a business partner or a service contract. The letter serves as your endorsement in written form. It describes in detail the qualification of the person who wrote the letter. It also gives insight into the reputation of the organization referred to. You may also see Business Introduction Letters.
What to include in a business reference letter?
When you don’t have an idea of where to start then writing a business reference letter can be quite a challenge. However, you can download a template or read letter samples to learn more about such letters. You must include the following elements in order to write an effective reference letter;
- Your name and contact details
- The name and contact details of the ones who will receive the reference letter
- The name of your business and the entity which will receive the reference letter
- The date you wrote the letter
- A formal salutation
- As the author of the letter, your qualifications
- Your general impressions regarding the organization or person referred to in the letter
- Explain the responsibilities and character of recommended entity
- Your relationship with the one referred to in it
- Explanation that indicates why the person or organization qualifies for the job
- Your contact information so that the reader can reach you in case of questions or follow-up.
Things to consider while writing a business reference letter:
Here are some things that you should consider for writing reference letters;
You have to follow a basic structure for writing business reference letters. At start, write the mailing address of the recipient followed by a formal salutation. Then, write the body of your letter. In the body of the letter, you have to give details about your recommendation or referral to the recipient. Next, there comes a closing statement and then type your full name. Proofread your letter and print it out. In the end, affix your signature right above your name.
Include a statement in the body of your letter that confirms or verifies the employment details and the qualifications of the recommended person. Important details such as employment dates, the job title and capacity, and even the salary of the employee are included here. You can also include employee’s attitude and performance details.
If you writing a reference letter for one of your previous employees then you have to give recommendations for them to get a good position in another organization. In such cases, include the previous responsibilities that your previous employee has in the company.
In addition, the employee’s professional strengths and skills are also included. You should also state your willingness to hire the employee again if he wants re-join to your organization. You can also mention specific projects or situations that indicate the skills and strengths of the employee.
Reference letters may vary when it comes to formatting. But, likewise with the structure, most people follow a basic style. The recipient’s mailing address, the salutation, the body, your name, and signature should be aligned on the left side of the document. Also, align the date on the right.
How to write a business reference letter?
Here are some tips that you should follow while writing a business reference letter;
- For the structure of your document, you can use a basic business recommendation letter template. Then, input the contents as required after some consideration. You just have to mention the honest comments regarding the capabilities and quality of service of the recommended company.
- You should give detailed information about the performance of the company. Include any other details which the reader may find useful. During writing these details, you have to be as specific as you can. Keep in mind that the reader will use the information in the letter as a deciding factor.
- You may want to write about all those good things in the letter in case you had a good experience with the company. But, in case you had bad experience and the company asks you to write a business reference letter for them then you should politely refuse them.
- Make use of concrete examples while describing the strengths of the company. The reader will understand your business more if you use illustrative comments.
- In the closing, provide a summary of the strengths of the company as well as a clear, concise recommendation. You should close the letter in the best possible way so that it fulfills the purpose of the document. You should also check Business Case Templates.
In conclusion, a business reference letter is a formal document given by one entity on behalf of another entity. As a business owner, you must learn how to write an effective business reference letter. A well-written business recommendation letter provides the applicant an edge over the competition.