How to Write a Letter for a Business Transaction

Business transactions, especially between one business and another, are almost always by way of contract and it is in the interest of both parties to have things in writing in case any disputes arise.

If you have ordered something, or need to supply material, you can write a business transaction letter to confirm the arrangement and get a response in the affirmative before you proceed. This is the recommended way to formalize verbal requests and protects both parties.

Here we will show you how to write a letter for a business transaction and will also provide a sample and a template for reference.

Tips for Writing a Letter for a Business Transaction

  • Keep the letter formal and professional
  • Clarify the transaction you are referring to in your letter
  • List down all the major points of the agreement and their consequences
  • Invite any queries or proposed changes in the agreement
  • Sign the letter and send it officially


  • 1

    Sample of a Letter for a Business Transaction


    Edward Hutt
    Sales Manager
    Hula Chemicals Co.
    2940 Boston


    John Talby
    Mostell Construction
    3390 Denver

    Dear Mr. Edward,

    I am writing this letter to formalize our agreement as per our discussion earlier this week. We, at Mostell Construction, will be requiring 15 barrels of SCC, delivered to our Denver office by 25th May 2014.

    Half of the payment for these barrels will be made on the 20th of May, while the remaining will be made within 3 days of receiving the delivery.

    If you have any concerns regarding this arrangement, kindly let us know in your reply to this letter. If not, kindly write back to confirm the order.

    Looking forward to your response,


    John Talby
    Mostell Construction

  • 2

    Template of a Letter for a Business Transaction


    (Recipient’s name)
    (Recipient’s organization/company)


    (Your name)
    (Your organization/company)

    Dear Mr./Ms. (Recipient’s name),

    As per our discussion (earlier this week/on (date)), I would like to confirm (our order/your order) for (material ordered). We will be (requiring delivery/making the delivery) at (our/your) (location of office/delivery destination).

    The payment for these (materials/supplies/products) will be (required/made) (propose payment schedule).

    (Any additional terms here)
    (Any other terms you wish to outline)

    Kindly let me know if you have any concerns regarding these terms. If not, please write back an acceptance letter so we can finalize this arrangement.

    Looking forward to your response,


    (Your name)
    (Your organization)

Leave a Reply

Your email address will not be published. Required fields are marked *

eight × 9 =