Business Letters | Types, Purpose and Structure

In the context of businesses and companies, the occurrence of some events needs to be informed through formal letters. Business Letters are formally framed letters written to convey pieces of information and to resolve issues. These letters are written with clarity and in a professional tone to leave a good impression and in the hope of getting a resolution better and more quickly.

What are Business Letters?

Business Letters are described as letters used in the corporate world to address any issue, to pass on some information, and for many other purposes. Business letters are written professionally in a formal format and with a formal tone, in order to leave a good impression. Some business letters are Cover Letters, Offer Letters, Letters of Recommendation, Request Letters, Complaint Letters, Interview Follow-up Letters, etc. Each business letter has its features, advantages, and purposes.

Key takeaways from Business Letters-

• The purpose of a business letter is to maintain documentation of all the important activities happening in an organisation.
• Business letters follow a clear and polite tone along with a formal format to demonstrate professionalism.
• Business letters fulfil various purposes like addressing a complaint, informing the termination or resignation, making an apology, making an announcement, etc.

1. Cover Letters

A cover letter is a letter that is sent to the company with the resume of a potential interviewee. A cover letter acts as an application mentioning the interest of the interviewee in the job. A cover letter may include educational qualifications, work experience, contact information, skills, etc. The cover letter consists of a formal tone and depicts the interest of the interviewee in the company and the post offered against some set of qualifications that the interviewee possesses.

Features of Cover Letter

• Personalised Introduction: It allows interviewees to address the hiring manager personally, showcasing their interest in the company.
• Complementary to Resume: It complements the resume by providing context and explanation regarding why that interviewee is a suitable candidate.
• Professional Tone: They maintain a professional tone and are typically of one page.

Purpose of Cover Letter

• Introduction: It introduces the interviewee to the employer and provides context to the interviewee’s application.
• Depiction of Enthusiasm: It demonstrates the interviewee’s enthusiasm for the job and the company.
• Highlights Qualification: It showcases the interviewee’s qualifications and how they match the job requirements.

Advantages of Cover Letter

• Impression: It is the interviewee’s first opportunity to make a first impression on the employer.
• Showcasing Fit: Interviewee can explain why he/she is a good fit for the specific role and company’s culture.
• Highlighting Soft Skills: It allows the interviewee to highlight soft skills and qualities that might not be evident from a resume.

2. Offer Letters

Offer Letters are written on behalf of the company to potential new joiners, stating that the company wishes to hire them. An offer Letter is issued after the successful completion of interviews by the individual who wishes to join the company and who the company wishes to hire. The offer Letter may contain the name of the employee and designation, date of joining, terms of employment, stipend/salary/CTC, etc.

Features of Offer Letter

• Formal Communication: It is an official and written communication from the employer to the candidate.
• Legally Binding: Once accepted by the candidate, it becomes a legally binding agreement outlining the terms and conditions of employment.
• Specific Details: It provides specific information about the job position. compensation, benefits, and other employment terms.

Purpose of Offer Letter

• Formal Offer: The primary purpose is to extend a formal offer of employment to a selected candidate.
• Clarification: It clarifies the terms and conditions of employment, ensuring that both parties have a common understanding.
• Starting Point: It serves as a starting point for the onboarding process, helping candidates prepare for the new job.

Advantages of Offer Letter

• Clarity: Offer letters provide clear and detailed information about the job, reducing misunderstandings and disputes.
• Formal Commitment: They create a formal commitment between the employer and the candidate.
• Professionalism: Issuing an offer letter demonstrates professionalism and a structured hiring process.

3. Letters of Recommendation

Letter of Recommendation, often referred to as a reference letter, is a written document in which an individual provides a positive assessment of another person’s qualifications. These letters are typically used in various contexts, such as job applications, college admissions, scholarship applications, and professional applications, etc. A letter of recommendation can include the name of the recipient, the recommendation against skills and qualifications, etc.

Features of Letter of Recommendation

• Personal Endorsement: It provides a personal endorsement of the individual skills, qualities, and accomplishments.
• Specificity: Effective recommendation letters are specific, highlighting particular strengths and experiences of the individual.
• Authorship: This letter is written by someone familiar with the individual’s work, character, or achievements, like a superior, professor, or colleague.

Purposes of Letter of Recommendation

• Job Applications: Letters of recommendation are often included with job applications to demonstrate that the individual is well-qualified for the position.
• Academic Admissions: They are commonly required for college or graduate school applications to vouch for the applicant’s academic abilities, character, and potential.

Advantages of Letter of Recommendation

• Credibility: Letters of recommendation carry credibility because they come from individuals who have direct knowledge of the person being recommended.
• Differentiation: A string letter of recommendation can differentiate the individual from other applicants by showcasing their unique qualities.

4. Sales Letters

Sales Letters are mainly written by the businesses to their potential and existing customers regarding the products/services the business offers, newly launched products, any change in the existing products, etc. Sales letters have the motive of keeping customers updated regarding the offerings of the business. This ensures a long-term relationship with customers. Sales letters may include the concerned products/services, changes made, information about newly launched products, any other necessary information, etc.

Features of Sales Letters

• Direct Communication: Sales letters are a direct form of communication from the seller to the potential customer.
• Promotional Content: They are highly promotional and focused on selling a product or service.
• Call to Action: They include a clear and compelling call to action, encouraging the recipient to take specific steps, such as making a purchase or requesting more information.

Purposes of Sales Letters

• Sales Generation: The primary purpose of a sales letter is to generate sales by convincing recipients to buy the product or service.
• Product Introduction: Sales letters introduce new products or services to the market and educate potential customers about their benefits.
• Relationship Building: While focused on sales, sales letters can help build and maintain relationships with customers.

Advantages of Sales Letters

• Cost-Effective: Sales letters are a cost-effective method of marketing, especially when compared to other forms of advertising.
• Target Marketing: They can be tailored to a specific audience or demographic, increasing the chances of reaching interesting prospects.
• Educational: They provide an opportunity to educate customers about the features and benefits of a product or service.

5. Letters of Commendation

Letter of Commendation is written by the employers to their employees with a motive to show gratitude towards the exceptional performance of the concerned employee. A commendation letter can be for the appreciation of an employee for his/her exceptional performance, congratulating the team for the successful accomplishment of any project. Employee appreciation can motivate employees. A commendation letter can include the concerned team/person, the reason for the letter, a congratulatory note, etc.

Features of Letters of Commendation

• Recognition: The letter acknowledges and celebrates outstanding accomplishments or contributions.
• Specific Praise: It includes specific details about what the recipient did well and why they are being commended.
• Appreciation: This letter expresses gratitude for the recipient’s dedication and impact.

Purposes of Letters of Commendation

• Recognition: The letter acknowledges and celebrates outstanding accomplishments or contributions.
• Motivation: It serves as a motivational tool, encouraging the recipient to continue performing at a high level.
• Boosting Morale: Commendation letters can boost the morale and self-esteem of the recipient and the wider team or organisation.

Advantages of Letters of Commendation

• Employee Engagement: They can boost employee engagement and job satisfaction, making individuals feel valued and appreciated.
• Positive Culture: This letter fosters a positive and supportive workplace culture where accomplishments are celebrated.
• Retention: This letter recognises employee contribution which leads to employee retention, as they are more likely to stay in an organisation where their efforts are appreciated.

6. Apology Letters

Apology Letters are the formal apology that one individual writes to another one in case of any mistake made the behalf of the former. Apology letters seek forgiveness from the recipient. These letters record the formal apology in an attempt to make up for any mistake that happens at the workplace and give assurance for the no-happening of such events/mistakes in the future. An apology letter can include the name of the concerned person, the reason for writing the letter, the apology, etc.

Features of Apology Letters

• Apology: The central feature is the sincere expression of regret, acknowledging the mistake or wrongdoing.
• Explanation: It may include an explanation of the situation, but without justifying or making excuses for the actions.
• Acknowledgement: The letter acknowledges the impact of the actions on the recipient, showing empathy.

Purposes of Apology Letters

• Reconciliation: The primary purpose is to reconcile and repair damaged relationships, whether personal or professional.
• Acknowledgement: It acknowledges the mistake or offence, validating the feelings of the affected party.
• Maintaining Reputation: Apology letters can help maintain a positive personal or professional reputation by showing integrity and responsibility.

Advantages of Apology Letters

• Rebuilding Trust: Apology letters can help rebuild trust in damaged relationships or situations.
• Conflict Resolution: They facilitate conflict resolution by opening lines of communication and addressing issues directly.
• Preventing Escalation: Apology letters can prevent a situation from escalating into a larger problem.

7. Thank you Letters

Thank you letters are generally written to show a feeling of gratefulness towards any other person/group of people/company. In the case of businesses, a business can write thank you letters to customers/consumers, vendors, employees, etc. to show that their efforts are valuable to the business. An appreciation through a thank you letter can provide the recipient with a sense of being valued. Thank you letters may include the name of the recipient, reason for writing, gratitude note, etc.

Features of Thank You Letters

• Expressing Gratitude: Thank you letters are written to express appreciation and gratitude to someone for their kindness, help, or support.
• Personalisation: They can be personalised to address specific actions or gifts, making the recipient feel valued.
• Sentimental Value: They often contain heartfelt sentiments and convey emotions.

Purposes of Thank You Letters

• AcknowledgmentYou: Thank you letters acknowledge acts of kindness, generosity, or assistance.
• Building Relationships: They help strengthen personal and professional relationships by showing appreciation.
• Business Growth: Thankyou letters can lead to repeat business and customer loyalty in business settings.

Advantages of Thank You Letters

• Gratitude: They show appreciation and create a sense of goodwill between the sender and recipient.
• Lasting Impression: Thank you letters leave a positive, memorable impression on the recipient.
• Strengthening Bonds: They enhance personal and professional relationships.

8. Welcome Letters

Welcome Letters are written to introduce something/someone to someone/something. For instance, a newly appointed employee will get a welcome letter from the end of the company to make the employee’s initial days at work easy, any customer receives the welcome letter on the behalf of company in case the customer signs up for something new at any company, etc. Welcome letters include information like greetings, company/product overview, personalised notes, etc.

Features of Welcome Letters

• Warm Greetings: They typically start with a warm and inviting greeting to make the recipient feel welcome.
• Introduction: Welcome letters often introduce the sender or organisation and provide context for the letter.
• Personalisation: Welcome letters can be personalised to address the recipient by name and provide a personal touch.

Purposes of Welcome Letters

• Onboarding: In the business context, they serve as part of the onboarding process for new employees.
• Orientation: Welcome letters are used to introduce newcomers to an organisation, school, or community and help them become acclimated.
• Invitation: They can invite recipients to events, gatherings, or programs, such as seminars, workshops, or memberships.

Advantages of Welcome Letters

• First Impression: Welcome letters create positive first impressions, setting a friendly tone.
• Engagement: Welcome letters engage recipients and make them feel valued, increasing their commitment.
• Personal Touch: Personalising the letter shows that the sender cares about the recipient.

9. Letters of Resignation

Letter of Resignation is written by the employees to their employers to inform the latter that the former wants to leave the company. Resignation can be verbally or written, as preferred by the company. It is always better to have the resignation in written form to maintain documents and information. Letter of resignation can include the employee’s name and designation, date of resignation, reason of resignation, etc.

Features of Letters of Resignation

• Formal Format: Resignation letters follow a formal business letter format with a professional tone.
• Statement of Intent: Resignation letters clearly state the sender’s intention to resign from their position.
• Effective Date: They include the last working date/day, providing notice as per the company policy.

Purposes of Letters of Resignation

• Formal Notice: Resignation letters serve as formal notice to an employer, indicating the employee’s decision to leave the company.
• Professionalism: They maintain professionalism during the resignation, leaving a positive impression.
• Legal Record: Resignation letters create legal records

Advantages of Letters of Resignation

• Documentation: Resignation Letters serve as written proof of the resignation, protecting both the employee and the employer.
• Positive Closure: Well-crafted letters of resignation can leave a positive final impression on the employer and colleagues.
• Reference: A professionally written resignation letter can be used as a reference for future employment.

10. Interview Follow-up Letters

Interview follow-up letters are written by the interviewees to the interviewers to thank the latter for their time. The interview follow-up letter shows that the interviewee is grateful for the time of the interviewer. An interview follow-up letter may include a thank note, details about the interview to show how actively the interviewee was listening, a request for feedback, etc.

Features of Interview Follow-up Letters

• Professional Tone: They are typically written in a professional and polite tone.
• Address: Follow-up letters are addressed to the interviewer of the interview panel.
• Gratitude: They express gratitude for the opportunity to get interviewed.

Purposes of Interview Follow-up Letters

• Gratitude: Interview follow-up letter express thanks for the opportunity to get interviewed, showing appreciation for the time and consideration.
• Showcase Skills: Interview follow-up letters emphasise the qualifications and skills that make a good fit for the role.

Advantages of Interview Follow-up Letters

• Professionalism: It demonstrates professionalism, courtesy, and eagerness to be a part of the organisation.
• Clarification: An individual can express any concern or doubts raised during the interview.
• Negotiation: They provide an opportunity to discuss any potential negotiations or additional information that may affect the hiring decision.

11. Termination Letters

Employers or the Human resources departments write termination letters for the employees in case of their termination from the job. The termination Letter documents every important detail related to the termination of the respective employees. Details like the employee’s name and position, tenure completed in the company, reason for termination, date of termination, follow-ups, additional details, etc., are included in the termination letter.

Features of Termination Letters

• Professional Tone: They are typically written in a professional and polite tone.
• Formal Format: Termination letters follow a formal business letter format.
• Reason: They include the reason for termination, which can be for cause (misconduct) or without cause (reconstructing or downsizing).

Purposes of Termination Letters

• Formal Notice: Termination letters serve as an official notice to an employee regarding the end of their employment with the company.
• Legal Record: They create a written record of the termination decision and the terms of separation.
• Professionalism: They maintain professionalism during the termination, leaving a positive impression.

Advantages of Termination Letters

• Legal Protection: Termination letters protect the employer by providing a written record of the termination, which can be crucial in case of legal disputes.
• Clarity: They provide clarity to the employee by explaining the reason for termination, the effective date, or any other important information.

12. Complaint Letters

Complaints Letters are generally sent by the customers/consumers to the business in case of non-satisfaction with the company’s products and services. Businesses, in this competitive market, must be comfortable with facing criticism too to make their services better. Sometimes businesses also need to write complaint letters to vendors in case of non-satisfaction with the supplies. Complaint letters can include the concerned products/services, expectations at the time of purchase, expectations for the resolution of the issue, etc.

Features of Complaint Letters

• Clarity: They use clear and concise language to explain the nature of the complaint.
• Formal Format: Complaint letters follow a formal business letter format with a professional tone.
• Address: Complaint letters are addressed to the relevant authority or individual responsible for addressing the complaint.

Purposes of Complaint Letters

• Express Dissatisfaction: Complaint letters serve the primary purpose of expressing dissatisfaction with a product, service, or situation.
• Documentation: Complaint letters create a written record of the issue, which can be useful for reference or legal purposes.
• Feedback: They provide feedback to the organisation or individual, allowing them to improve their products or services.

Advantages of Complaint Letters

• Record: They create a record of the complaint, which can be useful if legal actions are needed or if the problem persists.
• Accountability: Complaint letters hold the responsible party accountable for addressing the issue.
• Professionalism: Writing a complaint letter respectfully demonstrates professionalism and can lead to a more positive response.

13. Office Memorandum

Office Memorandum, often called Memo, is a brief written document commonly used in business and other professional settings to convey information, make announcements, provide instructions, or communicate within an organisation. It serves as a convenient and formal means of internal communication. Memos are typically short to the point, addressing a specific topic or issue. They can be distributed electronically or as printed documents within the office or organisation.

Features of Office Memorandum

• Header: Memos typically include a header with information about the sender, recipient, date, and subject.
• CommunicationCommunication: Memos are primarily used for communication inside the organisation.
• Standard Format: They follow a standardised format with a clear structure, including headings, body texts, and any attachments.

Purposes of Office Memorandum

• CommunicationCommunication: Memos are primarily used for communication inside the organisation.
• Decision Records: Memos can serve as records of decisions made during meetings or discussions.
• Request for Action: They may request action, response, or follow-up from the recipient.

Advantages of Office Memorandum

• Accountability: They create a written record of information or decisions, which can be useful for accountability and reference.
• Internal Communication: Memos are primarily used for communication inside the organisation.
• Documentation: The demonstratesOffice Memorandum creates a written record of the information, which can be useful for reference purposes.

14. Announcement Letters

Announcement Letters are written on behalf of the company to its employees, vendors, customers, and other related parties to inform the concerned people about any change in the company. Changes like employee change, policy change, any information about mergers, acquisitions, expansion, product releases or events, etc., are informed through announcement letters. These letters generally follow a formal format and tone. Announcement letters include the main subject for writing the letter, necessary information about the event, concerned parties, the effect of the event on concerned parties, etc.

Features of Announcement Letters

• Formal Format: Announcement letters follow a formal business letter format with a professional tone.
• Clear Subject: They have a clear and concise subject line that indicates the purpose of the announcements.
• Clarity: They provide clear, detailed information regarding the announcement.

Purposes of Announcement Letters

• Communication: Announcement Letters are primarily used for communication inside the organisation.
• Acknowledgement: They can be used to acknowledge achievements, milestones, promotions, or new hires.
• Notification: Announcement letters may notify recipients of upcoming events, policy changes, or other important matters.

Advantages of Announcement Letters

• Professionalism: Writing an announcement letter respectfully demonstrates professionalism and can lead to a more positive response.
• Documentation: Announcement letters create a written record of the information, which can be useful for reference purposes.
• Clarity: They use clear and concise language to explain the nature of the announcement.

15. Request Letters

Request Letters are generally written to request something on the office premises. Mainly employees write these letters to management and human resources when they want something new or extra in the office. These requirements can be any course, training class, arrangement of any special meeting, etc. Request letters include an explanation regarding the needs, supporting documents, any deadline expectations, etc.

Features of Request Letters

• Formal Format: Request letters follow a formal business letter format with a professional tone.
• Address: Request letters are addressed to the individuals or organisations from whom the request is being made.
• Conciseness: Request letters are usually concise and to the point.

Purposes of Request Letters

• Seeking assistance: They are used to ask for help, support, or assistance in various matters.
• Formal Requests: They serve as a formal means of making requests, such as requesting information, financial support, or documents.
• Proposals: Request letters can be used to propose ideas, collaborations, or partnerships.

Advantages of Request Letters

• Documentation: Request letters create a written record of the information, which can be useful for reference purposes.
• Clarity: They use clear and concise language to explain the nature of the request.
• Professionalism: Writing a request letter respectfully demonstrates professionalism and can lead to a more positive response.

Structure of Business Letters

All business letters generally follow the same structure, except for their body content. The general structure of business letters is as follows:

1. Heading: Heading includes basic information about the person who writes the letter, his/her name, contact information, address, email, etc.

2. Date: The date on which the letter is written.

3. Reference: The reference section includes the reference regarding the product/service/person/facility, regarding which the letter is being written.

4. Recipient Address: Recipient address includes the name, contact information, address, email, etc. of the recipient.

5. Subject: The subject includes the main reason for writing the letter.

6. Salutation: Salutation describes a formal greeting done towards the recipient.

7. Body: The body includes the explanation and relevant information regarding the issue.

8. Closing: The closing paragraph involves the idea and explanation of what is expected from the recipient.

9. Signatures: In the end, the letter must have either a handwritten or typed signature.

10. Enclosures: Enclosure needs the contact information of the person, who is writing the letter.