Write a letter to a bank customer declining his loan application on the ground of specific unsafe conditions of his factory

Our Ref: AG/Nawab/LQA/023/12

May 06, 2012

Mr. Z

Paragon Hardware Mart

39, Nawabpur Road,

Dhaka 1200

SUB: YOUR APPLICATION FOR A CASH CREDIT LOAN

Dear Sir:

You are our valued customer for a long time. Your transactions with us suggest that you have a good reputation in supplying hardware to a huge number of your clients. We are proud to find you as one of our prestigious account holders.

We have received an application dated May 02, 2012 from your esteemed firm seeking a cash credit loan for Taka one million. You have also proposed to offer enough additional collateral securities to cover the loan.

We wish we could offer you the loan as immediately as possible.

But, during our recent inspection at your shop and the adjacent factory we found that your factory is not at all secure as regards the following:

01. The factory building is extremely old. The building, we are afraid, may collapse in case
an earthquake hits Dhaka city

02. There is no boundary wall on the premises

03. The door and the windows of the warehouse are too old and rickety

We take pain to say that our management won’t be able to approve a cash credit for your firm if you don’t improve the security problems mentioned above.

Should you need further clarification please don’t hesitate to contact us during office hours. We are always at your service.

Thank you so much.

X
Manager