Dear Mr./Mrs. ,
Re: Loan Application - Fee Waiver
As you know, I have been in discussion with the bank for some time now about establishing a new loan facility on our behalf. We have just received word of the Credit Committee’s approval and have in our hand your formal Letter of Commitment.
Of course, the management team and shareholders here at (provide name of company) are extremely grateful for your consideration. While all the other terms and conditions are acceptable, our only concern at this point has to do with the one percent (1%) fee being charged. We feel that the amount is a little excessive and ask that you consider waiving or reducing to one quarter of a percent (1/4%) in view of the following:
- Our relationship and track record of payments with you.
- The ongoing recesssive conditions.
- The size of the facility which makes the (1/4%) being asked for a much more reasonable upfront payment in absolute terms.
- The nature of the facility where earnings will be delayed making cash resources at the outset of the project extremely precious.
- The fee being charged by the market on transactions of this size and nature on a whole is in the region of one half percent (1/2%.
- Other credit facilities and investing possibilities which we have discussed with you and hope to conclude on in the near future.
We trust that you will review the facility and our request for a fee waiver or restructuring and respond favorably. I can be contacted at (provide telephone number) should you wish to discuss further.