WRITINGGUIDE

Readerswhodonotyethavetheadvantageofknowingyouwilljudgeyoubyyourwriting.
Paysomeattentiontowhatyousayandhowyousayit.Whatfollowsisasamplecoverletter
forabankloanrequest.Notehowmuchinformationispackedintoashortletter,andthatit
focusesonwhatabankerwouldmostwanttoknow.

Writeasyouwouldspeak,butjustalittlemoreformally.Avoidslangandcontractions.Donot
trytomakeittoofancy.Startwithalistofthemainpointsyouneedtogetacross;thenstart
explainingthem.Useonlythethreebasictenses,past,present,andfuture.Refertoyour
businessbyitsname,orit.Thus,Contoso,Ltd.wasformedin1996etc.,isnowcalled
AdventureWorks.UseIorweonlywhenreferringtotheactionsoftheindividualowners.
Writeintheactivevoiceandinshortsentences.
ExecutiveSummary

ADVENTUREWORKSisahighenddesignandremodelingfirmwithareputationfor
integrity,qualitycraftsmanship,andexcellenceinmanagement.Inthreeyearsannualsales
haveincreasedtobewelloveramilliondollars.

ADVENTUREWORKSwasformedbyBrianGrothasaSoleProprietorshipinDecember1997.
In1998acombinationofactivitiesinvolvingresidentialdesign,consulting,andgeneral
constructionbroughtGrossSalesof$250,000.

TheCompanyexperiencedsteadygrowthsinceitsinception,andincorporatedinMarch1999,
(seeAppendix6,ArticlesofIncorporation).In1999GrossSalesof$750,000wereachieved.In
2000,signedcontractsshowthatGrossSalesareexpectedtobe$1,300,000(seeAppendix2,
currentBacklog).

TheCompanyhasitsaddressinleasedpremisesat1234AStreet,Springfield,MD40523.Its
activitiesfallundertheStandardIndustrialClassificationSIC1521and1522.Theownersare
BrianGrothandJulieBankert.

ADVENTUREWORKSisinvolvedinfourdistinctactivities:

1. ArchitecturalDesign
2. Residential&LightCommercialConstruction
3. PropertyServices
4. RetailFloorCoverings(seeAppendix4).
EightytoninetypercentoftheGrossSalesareindesignandconstruction.Atthemoment(May
2000),thereare25permanentemployeesonthepayrolland10subcontractedworkers
excludingsubcontractingcompanies(seeAppendix1forresumes).

ThecompanysShortTermObjectives(withinthenextthreeyears)aretoincreaseactivityinall
Divisions,andtoachieveannualprofit,netaftertaxes,of$200,000by2005.ItsLongterm
objectivesare:tomaintainthelevelofcurrentbusinessachievedupto2005,andthentomove
intohistoricalrestorations,morelightcommercialwork,andincreasednewcustomhome
construction.

Toimplementtheseobjectivesthecompanyneeds:

1. Aloanof$100,000atPrimeplus2%.Thisloantobeusedforcurrentneartermexpenses
including__________________,______________and____________Itwillberepaidin
fiveyears.
2. Alineofcreditof$50,000totakeadvantageofdiscountsavailable,avoidassociated
penalties,andexpandintohighprofitareasrequiringpositivecashflow.
TheprospectsforADVENTUREWORKScontinuedgrowthareexcellent,with2000
constructionanddesigncontractsunderwayalreadyexceeding$550,000(seeAppendix2,
Backlog2000).

Forequitythecompanyhasassetsof$227,000(seeAppendix9,BalanceSheetasof
mm/dd/2003).Additionally,thecompanysownersarewillingtoofferascollateralasecond
mortgageonaresidencewithanestimatedequityof$150,000.Theaddressofthisresidenceis
456OakDr.,Mt.Vernon,CA31304.

Thecompanysoverallobjectiveistosatisfythatmarketsegmentthatdemandsintegrityand
qualityconstruction,andtomaintainasteadygrowthinsalesvolumethatwillsustainthe
companyfortwentyyears.BrianGrothhasenhancedhisreputationtothepointwherethe
companyisregardedbymanyarchitectsastherecommendedchoicewiththeirclientsdueto
theexcellenceofitscraftsmenandmanagement.

MarketresearchshowsthatthepopulationinSpringfieldhasincreasedby200,000between
1985and2003.Thisincreaseinpopulationbroughtaboutanincreaseof19,850newsingle
familyhomesvaluedatoverthreebilliondollars.Thisincreasegivestheareaover128,000
existinghomesasapotentialremodelingmarket.DemographicestimatespublishedbytheState
OfficeofFinancialManagement,2002,indicatethatanadditional20,000personswillneedtobe
housedbetween2002and2020.ADVENTUREWORKSintendstopursuethismarket
vigorously.(SeeAppendix7fordataonanticipatedchangesinthepopulationoftheCounty).

FinancialObjectives

ThefinancialobjectivesofADVENTUREWORKSoverthenextfewyearsareasfollows:

2005 20052010
Sales $7,000,000 $10,000,000
NetIncomeafterTax $500,000 $1,000,000

Pleasereviewtheenclosedbusinessplanandloanproposal,andofcoursefeelfreetoaskfor
anyadditionalinformationorexplanationsyoumaywant.Iwillcallyouinaboutoneweeks
timetoarrangeanappointmentsothatwecandiscusstheloaninperson.

IlookforwardtoamutuallyprofitablerelationshipwiththeWoodgroveBank.

Sincerely,

BrianGroth