Business Proposal Rejection Letter Samples (How to Decline)

A business proposal rejection letter is a letter businesses, companies, or organizations write to reject a bid. These are common letters in the business world that act as responses to companies that have submitted business proposals for specific projects.

The letter is written to express regret that the company didn’t meet the set guidelines or to inform them that the project was awarded to a competitor. Writing the letter requires the right words, tone, and format. If you’ve any doubts writing the letter, refer to samples.

Business Proposal Rejection Letter Templates

Whether you’re a business owner or a decision-maker, a customizable template provides a respectful and well-crafted message, helping you maintain positive relationships and uphold your organization’s reputation. Streamline your rejection process with them following ready-to-use templates, available for free download in Word and PDF formats for your convenience.

Business Proposal Rejection Letter 01

Business Proposal Rejection Letter 02

Business Proposal Rejection Letter 03

Business Proposal Rejection Letter 04

Business Proposal Rejection Letter 05

Business Proposal Rejection Letter 06

Business Proposal Rejection Letter 07

Business Proposal Rejection Letter 08

Business Proposal Rejection Letter 09

Business Proposal Rejection Letter 10

Business Proposal Rejection Letter 11

Business Proposal Rejection Letter 12

Business Proposal Rejection Letter 13

Business Proposal Rejection Letter 14

Proposal or Bid Rejection Letter 01

Proposal or Bid Rejection Letter 02

Proposal or Bid Rejection Letter 03

Proposal or Bid Rejection Letter 04

Sales Proposal Rejection Letter Sample

    What to Include in a Proposal Rejection Letter

    A business proposal rejection letter should include the information below:

    • The official names of the person who has rejected the business proposal.
    • When the proposal was received and the date that it was rejected.
    • The intention of the letter which is usually to state the rejection of the proposal.
    • Why the proposal has been rejected.
    • Where applicable, the people who were involved in the proposal review.
    • The measures that the person who proposed may take should he or she want to improve the business proposal and move it forward again for future acceptance.
    • The organization or entity’s contact information should the person who proposed have inquiries and other questions regarding the proposal rejection.
    • The organization’s appreciation for the efforts done by the individual in drafting and creating the business proposal.

    Why a Business Proposal May Be/Has Been Rejected

    A business proposal may be rejected due to the following items:

    • Although a business proposal may be good, it may not have passed the initial requirements set by a certain company or business process, thereby prompting the entity to reject it.
    • There is a chance that other proposals submitted by other individuals are better than the proposal you are submitting. A specific project may receive many different business proposals, especially if many people are involved in the project creation.
    • An incomplete proposal may also be rejected, especially if there are essential items for the project missing.
    • It may also be rejected if the business proposal submitted is not accurate to the purpose that it is intended for.
    • The proposal panel screening may find areas of the proposal that need to be changed or improved, meaning that the rejection was due to improved processes and does not necessarily mean that there is no chance for a certain proposal to be used.

    If you ever receive a business proposal rejection letter, review everything in the letter to know the items that became the basis for your proposal’s rejection. This will also allow you to know the areas you may need to improve and things to consider next time you are creating another business proposal.

    Tips on How to Write a Business Proposal Rejection

    • Offer a clear and valid reason for rejecting the business proposal. The recipient requires some explanation as to why their proposal didn’t sail through. This information will assist them in preparing better in the future.
    • Use a polite tone. Since you’re communicating bad news, you need to use a respectful tone to say no. Your words should not make the recipient humiliated.
    • Be professional. A business proposal rejection letter is a formal letter that should follow an official format.
    • Express wiliness to work with the client in the future should they meet your requirements. As you terminate the letter, show optimism that you can work with the company if they make the relevant changes.

    Sample proposal rejection letters

    Sample 1

    Dear Sir,

    I write this letter to thank you for showing interest in working with us. Unfortunately, your proposal was rejected by our board of directors.
    A keen look at our terms and conditions established that the contract may not be economical for our company, we may incur losses. We wish the best in your business and hope that we will work together in the future.
    If you need any clarification, please contact my office for details.
    Once more we thank you for expressing interest to work with us.

    Mark Timbre
    Managing director
    Seamless Technologies Ltd

    Sample 2


    Marie Jared
    Outcomes business solutions
    323 Birds St, Mercy Ave
    Chicago IL, 9243

    Date: July 23rd, 20XX

    Sub: Apologies for business proposal rejection

    Hello Ms. Jared,

    This letter is in response to your business proposal dated May 3rd, 2019.
    Although you had submitted a well-crafted business proposal for the bid we had advertised for the supply of printing machines, we regret that your proposal was not successful.
    The bid was awarded to another company named Mercer technologies since they presented a better offer besides offering to be servicing the machines for free.

    We value your interest to work with us. You are still eligible to submit your proposal in the next bid.
    If you need further details for this project, call or email us.

    Jose Kims
    Group C.E.O

    Adept Solutions

    More Tips

    Generally, we are all aware that writing a rejection letter is no fun as, at this point, you’d be breaking the heart of a hopeful applicant or bidder. However, if you keenly follow the short guideline below, it’d help you write a business proposal rejection letter to deliver your message in the best way possible.

    • Your letter should follow the standard format of a business letter.
    • Make sure to use appropriate salutation or greeting tags such as “Dear Mr. Terrence Silver.”
    • If possible, always provide positive feedback or give positive criticism.
    • Make your rejection letter brief and straight to the point formally and politely.
    • Avoid telling your applicant or bidder of the person or company to whom you have awarded the project.
    • Always keep your options open for future project opportunities.
    • Finish your letter with an appropriate closing. For example, “Sincerely” or “Yours Truly.”

    About This Article

    Mary Erickson
    Authored by:
    Business Writing | PhD in Communication and Society
    Mary Erickson is an expert in business writing and currently serves as a Visiting Assistant Professor at Western Washington University. She completed her doctoral studies at the University of Oregon, obtaining a PhD in Communication and Society in 2011. Mary is an active member of prestigious academic organizations, including the Modern Language Association, the National Communication Association, and the Society for Cinema and Media Studies. With her deep knowledge and extensive experience in the field, Mary is dedicated to advancing the understanding and practice of effective business writing.

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