We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
At some point in your career, you might be asked to supply a letter of reference for a business on behalf of your own company. So how do you write a good professional business reference letter? We're here to explain everything about this document.
What's in this guide?
- What is a business reference letter?
- When should I use a business reference letter?
- What does a business reference letter include?
- How effective is a business reference letter?
- Business vs. personal reference letters
- Do I need a lawyer for a business reference letter?
- Get access to customisable business reference letter template online
- How do I write a business reference letter?
- Where to get free legal documents and templates like a business reference letter
What is a business reference letter?
A business reference letter is a recommendation provided by a business on behalf of another business or organisation. It will verify the quality of the services to a client or customer who may wish to hire them.
Download this business reference letter template at Lawpath
When should I use a business reference letter?
Reference letters are used in a wide variety of situations; business related letters are usually used in professional situations. Some of the situations include:
- Businesses may use reference letters to prove their reliability instead of using testimonials.
- To endorse a contact for business purposes.
- To endorse a product, brand or company.
- To verify the quality of a product of service.
What does a business reference letter include?
A reference letter is unique to every business and should be written in a positive tone. Use a standard business letter format. As a general rule of thumb, reference letter writers should consider including the following sections:
- Your name and contact details.
- The name of your business and the name of the business who the letter is about.
- The date you wrote the letter.
- A formal salutation.
- Who you are and why you are qualified to write the letter.
- Your general impressions about the organisation along with descriptions of their service or product.
- Your relationship to the business you are writing about.
- Details which demonstrate why the company qualifies for the task or job.
- Your willingness to work with the company or use the service again.
- Encourage follow up questions.
How effective is a business reference letter?
A good reference letter can make a huge amount of difference to a company. It can help a company stand out from the crowd, and earn them customers. Without a good business reference letter, a business may struggle to gain clients.
Business vs. personal reference letters
A business reference letter is generally written by a manager, supervisor or colleague that knows the business they're referring through a workplace setting. A business reference letter will describe any professional experience you had using or working with the organisation.
A personal reference letter is written by a manager or colleague about an employee. It's used by hiring companies as a positive endorsement of a person's skills and attributes, making sure they have the right skills for the role.
Do I need a lawyer for a business reference letter?
There is no legal obligation to provide a reference or to have a lawyer present when writing it. An employer can choose whether they want to provide a business reference letter and how much information they want to include in it. A workplace lawyer or human resources manager may have created a company wide policy which specifies who can provide a business reference, the format and your legal obligations. If you are creating your own letter and are struggling to finalise the format, try an online template.
Get access to customisable business reference letter template online
Does your company belong in this list?
How do I write a business reference letter?
No matter the size of your business, it's important to learn how to write an effective reference letter in business. You can help fellow businesses stand out from the crowd by writing an effective reference letter. Here are some rules and tips on how to write a professional reference letter:
There is a set structure to follow when writing this type of reference letter. It should open with a formal salutation. Then it's followed by the body of the letter where you write the bulk of your recommendation.
End with a strong and clear closing statement, before stating your name. Ensure the letter is proofread, printed on letterhead paper if possible, and then a signature should be signed in black ink.
In the body of your letter, include a statement which confirms the claims made by the business. Provide specific details of your relationship with the company. Specify what you purchased, how long you worked with them and when, and detail the services attained. Then describe how the company performed, the time frame it was executed in, and any other details you feel may be useful to those reading it.
Close your reference letter with a summary of the strengths of the company or employee along with a clear, concise recommendation.
Making the reference too short looks like you're unenthusiastic about the company you are recommending, although you should still be concise and stick to one page. In regard to formatting, reference letters vary and some companies have a set format all employees should stick to.
Where to get free legal documents and templates like a business reference letter
- Rocket Lawyer. Rocket Lawyer allows you to create legal and professional documents through their range of templates. They have a free trial service, although with a premium account you get more benefits.
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. They offer a wide range of free samples, but you must create an account to access their full range of customisation tools.
- Law Depot. Law Depot provides a wide selection of free online documents to download and customise.
- Wonder Legal. Wonder Legal allows you to browse a huge amount of legal and professional document templates. This includes a reference letter template for all occasions.
More guides on Finder
How to start an event photography business
From practical steps to key legal documents, here's your checklist for launching an event photography company.
How to start an oven cleaning business
Learn the key points to know before launching an oven cleaning company.
How to start a graphic design business
How to use your design skills as the basis for a profitable enterprise you can run from the comfort of your home.
Graphic designer resume templates (Australia)
Get set up for success with a CV that matches high-quality visuals with the right words.
How to start a curtains and blinds business
Get all the important details on starting your own curtains and blinds business.
How to start an electronic repairs business
Turn your passion for electronics into a profitable company.
How to start a wallpaper business
Equip yourself with the right know-how to open your own wallpaper business.
How to start a corporate merchandising business
From business loans to perfecting your sales expertise, helpful tips for launching your business.
How to start an SEO business
Helpful tips for starting and running a successful SEO agency.
Energy Australia Business Energy Review January 2021
Take advantage of fixed rate electricity and gas for your company with Energy Australia’s Total Plan Business.
Ask an Expert