Business organizations make use of different types of business letters on a day-to-day basis. It is a life-breath of any business, no matter if it is big or small. Even after the availability of digital modes of communication, conventional mail is still in vogue.
Business Letters implies any written communication that plays the role of the company’s representative. Hence, a good business letter is characterized by courtesy, convincing ability, knowledge and politeness. Further, a business letter starts with a salutation and ends with a signature. Its contents are professional.
The use of a business letter is to communicate a number of purposes which may cover:
Types of Business Letters
There are a number of types of business letters that the companies use for different purposes. Here, we are going to discuss each of them in a precise way:
Formal Invitation Letter
Companies send this letter to invite media, clients, suppliers and dignitaries on special occasions and events like the launch of a new product, inauguration of a new outlet or manufacturing unit, annual sales meeting, etc. this is generally printed like an invitation card.
These letters are meant to present a new product or service to the company’s client or customer. Sales personnel use these letters to contact prospective buyers and also to strengthen their terms with long-term clients.
Generally, a client or customer writes this letter and sends it to the organization to ask for details or seek clarifications about the goods. This will include their quality, quantity, rates, size, delivery charges, discount rates, packing, time of delivery and other terms and conditions for procuring them from the seller.
This is written in response to the enquiry letter. A quotation letter is a letter that a seller writes and sends it to the buyer indicating the terms and conditions regarding the sale transaction. On the receipt of the quotation letters from all the suppliers, the buyer compares them. Thereafter, the buyer picks the three best ones.
As the name suggests, businesses use order letters to place orders for products or services from a vendor or supplier. So, the motive for writing this letter is buying of materials. Also, it contains the terms and conditions as per which the buyer and seller are ready to transact.
On receiving the order from the buyer, it is mandatory on the part of the supplier to supply goods as early as possible or as instructed by the buyer. At the time of delivery of the goods to the customers, we call it compliance of an order. Further, the letter which the seller writes to notify the dispatch of the goods is a compliance letter.
When the prospective buyer places an order for buying the goods, the seller receives the information regarding that. Thereafter, it becomes necessary for the supplier to confirm the order first. So, as the letter of acceptance reaches the buyer, acceptance is said to be complete.
The seller writes this letter to the buyer when he refuses to accept the buyer’s proposal of buying the goods. This happens due to the reasons like
- Difference in price
- Non-availability of stock
- Disagreement with terms and conditions
- Worker’s strike, etc.
First of all, this letter shows dissatisfaction of the customer. Customer sends this letter to the organization when they are not happy with the product or services they have bought. Also, he wants to draw the attention of the seller to the issue that he/she is experiencing, through this letter. Customer usually writes this letter when the product is defective, damaged or of substandard quality.
In the case of B2B companies, businesses also write complaint letters to the vendor when they are not satisfied with the product or service quality.
This letter is written in response to a complaint letter. It is an attempt to reassure the aggrieved customer, who might damage the company’s reputation. This is to acknowledge the complaint and inform the customer that the company has taken significant measures to rectify the situation.
You might be aware of the fact that in business, all the transactions do not take place in cash. Businesses often supply goods on credit. In this regard, the creditor mails a collection letter to the debtor to persuade for making payment.
Applicants send a cover letter along with the resume to the employer at the time of applying to a job. Not all employers require this. It is used to tell what is enclosed, the reason for sending it and what the recipient is supposed to do with it.
Letters of Recommendation
It is written in the interest of another profession to confirm their qualifications and work ethics. Its aim is to make the application more impactful be it for employment, education or any sort of professional opportunity.
An interview follow-up letter is one that an interviewee sends to the interviewer to acknowledge them for giving their time and also to restate interest in the position. The interviewee mails the follow-up letter usually within a day of the interview.
The employer sends an offer letter to the candidate who had gone through the recruitment procedure and successfully qualified all the rounds. This informs him/her that the company wants to hire them. This letter comprises important information regarding:
- Pay scale
- Date of joining
- Timings and
- Other terms of employment.
A contract of employment in writing between employer and employee, which the human resource department of the organization issues. It sets out the terms and conditions of employment which are binding on both the parties concerned. This is provided when a new candidate joins the organization.
Companies use this letter as a medium to introduce an employee and give basic information to all the recipients.
Letters of commendation
Employer uses this letter to exhibit pride and appreciation for the extraordinary performance of the employee. This is to show how worthy an employee is for the company. The entire staff of the organization congratulate him on his achievement. This not just sets a standard among employees but also encourages them to do better, in their respective jobs.
Thank You Letter
A professionally written thank you letter is a great way of showing gratitude to your colleagues, employers, vendors, partners etc. that you genuinely value their time or effort.
Letters which the company uses to declare or inform employees, vendors, customers or media about something important, about the company. This may include changes in policy, mergers or acquisitions, new product launches etc.
With the help of this letter, one can formally ask or request for something at the workplace, such as a raise/increment, training session, etc.
Letters of Resignation
Employee sends this letter to an employer to inform them about his/her intent to resign. Employee sends resignation letter to the immediate boss or manager to inform him about the resignation and the last working day. In some situations, the employee can also mention the reasons for leaving the organization.
Some organization does not need a formal resignation letter. Rather a verbal notification about the employee’s plans to leave is enough.
The employer writes this letter to the employee to list down all the points, reasons and terms for his/her termination.
A word from Business Jargons
Above all, the different types of business letters not just help the business persons in building new relations and maintaining the existing ones, but it also helps in planning, managing and organizing business activities.
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