6 Steps To Write a Business Rejection Letter (Plus Template and Example)

Harvard rejection letter

Reasons for writing a business rejection letter

Here are some justifications as to why you might send a business rejection letter:

A candidate not meeting requirements

When a candidate for a position opening doesn’t meet the requirements for the position or when a business proposal they received doesn’t meet the requirements listed, a company may write a rejection letter. A company may write to other candidates to let them know that they have chosen a particular candidate during the hiring process.

A proposal not meeting business guidelines

A business may write a letter rejecting a proposal if it does not comply with the requirements listed. In this situation, the company might provide a chance to revise and resubmit the proposal.

Competing offers

A proposal, idea, bid, or application may occasionally face competition from other companies, experts, and job candidates. When a company selects one offer, they may write to inform the other offers.

A business requesting improvements

When rejecting a candidate, a company might include a letter asking them to revise their proposal. This might also be the case if the company wants a higher bid because the initial offer was too low.

Incomplete offer

A business may write to the applicant to inform them of any information missing from their business proposal or bid and to reject the proposal as it is currently written.

What is a business rejection letter?

A business rejection letter informs the recipient that their proposal, offer, or application has been rejected. This is a formal letter explaining in a polite manner why the organization did not accept a candidate’s application or proposal.

How to write a business rejection letter

A business rejection letter is written in a similar format to a business proposal letter. The steps to writing a business rejection letter are as follows:

1. Start with the date

A rejection letter often includes the date in the heading. If you are sending the rejection letter via email, start the message with a subject line that includes the sender’s name, the name of the proposal they submitted, or the job for which they applied.

2. Include contact information

Put the recipient’s name and contact information after the date. A rejection letter, unlike the majority of business letters, does not need to include the sender’s information. You could mention the name of the company from which the recipient sent their proposal in a business rejection letter.

3. State your intention

To communicate your intention to the recipient, you might use polite language. The intention is typically to reject their bid, proposal, or job application. When your company requests modifications or improvements to a business proposal, for example, the intention is not to reject the proposal. Indicate the date you received the business proposal if you are rejecting it to provide context.

4. Offer an explanation

The following step is to provide a justification for rejecting an application or proposal. Your explanation can be brief. The candidate’s lack of necessary skills, your company accepting another offer, or the proposal’s incompleteness are typical grounds for rejection. Giving advice on how a candidate can enhance their offer for future proposals and applications is frequently beneficial.

5. Thank the recipient

Gratitude for the time and effort spent submitting a proposal or submitting a job application to the recipient To be sincere and personal in your letter, you might mention something particular about the applicant, like a benefit of their offer. Consider your relationship with the recipient. To keep your relationship intact, be honest and pick your words carefully.

6. Close the letter

Consider ending your letter by wishing them luck in their future endeavors. Invite the recipient to make the necessary changes and reapply if you are still accepting applications. Sign your name, your job title, and the name of your company after the closing.

Template for a business rejection letter


[Name of recipient] [Business name, if any] [Street address] [City, state zip code]

Dear [Recipient],

I’m responding to your business proposal from [date of proposal submission].

I appreciate you presenting your proposal for [the purpose for which the applicant sent a proposal]. [Compliment the applicants proposal to personalize the letter]. However, we are choosing a proposal from [person or organization who sent the selected proposal]. The reason the chosen proposal was selected by the selection committee was [reason for the chosen proposal’s success]. Thank you for taking the time to submit your proposal. I wish you success as you submit proposals to our business and other companies in the future.

[Your name]
[Your job title]

[Company name]

Example of a business rejection letter

April 7, 2021

Oliver Buckley
XYZ Business Solution
118 Station Street
Chicago, IL 93000

Dear Mr. Buckley,

In response to your business proposal from March 20, 2021, I am writing. We appreciate you sharing your suggestion for our new client intake procedure. Your business proposal was well written, and I value the specific suggestions for improving our current procedure that were included in the details. However, we are selecting a proposal from ABC Solutions. This proposal was chosen by the selection panel based on parameters that would fit our budget and maximize the effectiveness of our client intake.

Thank you for taking the time to submit your proposal. I wish you success as you submit proposals to our business and other companies in the future.


Rita Windell
HR Coordinator

Trial Creative Corporation


How do you write a business refusal letter?

How to Politely Decline a Sales Offer
  1. Thank the Person.
  2. Deliver the News Directly.
  3. Explain Your Reasoning.
  4. Suggest Other Ways of Partnership (If Appropriate)
  5. Keep the Professional Tone of Voice.
  6. Don’t Explain Rejection with Price.
  7. End Your Email Appropriately.
  8. Rejection with a Willingness to Receive Other Service Offers.

How do you reject a business proposal?

How to write a business rejection letter
  1. Start with the date. A rejection letter often includes the date in the heading.
  2. Include contact information. Put the recipient’s name and contact information after the date.
  3. State your intention. …
  4. Offer an explanation. …
  5. Thank the recipient. …
  6. Close the letter.

How do you write a rejection proposal letter?

10 tips on how to decline business proposals politely
  1. The sales email may not have been requested by you (and you may not want it), but someone took the time to write it, so thank them for their time.
  2. Quickly deliver the bad news; if you’re not interested, let them know right away.

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