(Bank Name)
(Address)
To
(Name)
(Address)
Re: UPDATE ON NEW MARKET CONDITIONS
Dear Sir,
In response to your letter, kindly take note that the process for applying for the new loan has changed. I noticed that you responded to the initial loan request, which was sent more than six months ago. Since you did not respond immediately and your procedures took several months, the loan proposal plan changed based on the new market conditions after the pandemic struck and brought with it major imbalances. Therefore, the current priorities of the company differ and this is in line with the current situation. Indeed, we have sent the new plan on the date of xxxxx, with all the required details. The primary objective of the current loan disbursement is to settle our clients’ accounts. As I explained to you, we have dues in the market, but due to market conditions and delayed government payments, customers are not able to pay their obligations. Such circumstances have put the bank in uncomfortable situations for we are hardly hitting the targets set for the financial year and this is not a good image for the bank which has been reputable for years. The main objective of the loan application is to commit to paying the debts owed to us so that the company maintains its brilliant reputation, and you will pay the loan within five years. In addition to this undertaking set, we are in a position to mortgage the company’s building duly as this will put us in a state that will enable the servicing of the loan in question with ease and avoid any inconveniences.
Please take the necessary measures and ensure commitment from your end to facilitate the approval of your loan in due time!
Kind regards,
(Name of the Branch manager)
Dated…………………………………
Dated…………………………………