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Politely Decline a Business Proposal: Sample Letter & Email

In business, you have to follow certain ethics to earn a good reputation in the market. One of the traits of business ethics is good communication.

how to turn down a business proposal politely sample
You will come across several proposals in business every day. It is up to you, which ones you want to go ahead, and which ones to reject.

While rejecting a proposal, you should try to communicate the rejection news in a very polite way. In business, you never know who might be most useful and profitable to you at what point of time.

Here are examples of such letters and emails on declining business proposals.

TEMPLATE #1 (Letter)

Date: _________

(Name of the Person)
(Name of the Organisation)
(Address) (Telephone)

Reg.: Your business proposal

Dear Mr. / Ms. _________,

I was pleased to receive your proposal on doing business on the _________ products. As I was examining your proposal, I found it very interesting and well presented. Thank you for your interest in doing business with us! I sincerely think we have a good potential of alliance.

However, we are unable to go ahead with your proposal at this point of time. This is simply because we have already contracted some other party for similar services.

We foresee a possibility of doing business with you in the future. As we grow, we certainly require the association with potential firms like yours.

I do appreciate your time and effort in preparation and submission of the proposal.

Wishing you all the best in your business endeavors.


(Name of the Person)

TEMPLATE #2 (Email)

Dear _________,

Greetings of the day!

Thank you for sending across your proposal on providing _________ services to us!

I have gone through the same and pleased to note that your firm is providing such services at a reasonable price.

However, I regret to inform you that we will not be able to accept and go ahead with your proposal at this time.

We are a relatively small firm in the _________ business. It is not within our budget to spend funds on the services of the said nature that your firm renders.

With the growth of the firm, we may require your services in the future and, accordingly, we will get in touch with you.

I sincerely appreciate your time and effort in this regard.

Kind Regards,
(Name of the Person)

Politely Decline a Business Proposal Letter