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In business，letter writing is a major thrust area of communication．The modern goal of nations for free global trade and the need to cut across national，linguistic and cultural barriers to promote trade have made the letter an important business tool．A business letter acts as a representative of the organization．
A business letter serves certain important functions：
1．Sending business information—Letters are the most cost-effective and practical method of exchanging data．With the help of letters，executives may simply convey information to consumers，suppliers，investors，government agencies，regulatory bodies，and others．
2．Developing and keeping business partnerships—Business letters are essential for establishing and maintaining commercial relationships with various parties．They bridge the gap between a company and its customers，suppliers，creditors，and other stakeholders．
3．Market creation—Circular letters are business letters that aid in developing new markets for goods and services．These letters inform the buyers about the products’utility，features，and usefulness and encourage them to purchase the products．
4．Cost and time saving—Business letters save both time and money by allowing busy executives to avoid contacting their clients and other interested parties．
5．Maintaining confidentiality—Business letters aid in the confidentiality of information．The sender and the receiver only know the message contained in the letter．
6．Formal agreement—A business letter serves as a formal agreement between the buyer and the seller．
7．Transactional settlement—These commercial letters are critical in establishing business transactions．
8．Selling incentive sales—You can use these business letters to give consumers sales incentives．Sales incentive letters are used to offer long-term consumers refunds，vouchers，or special deals．
9．Developing Relationships—You can also use development relationship business letters to compliment or thank business partners or customers．A cover letter delivered with a report，for example，can inform business associates about the report’s contents．
Every organization has to continuously promote and expand its business．All information on its product and service gets updated through a business letter sent to customers and clients．It is a micro-level substitute even for advertisements．Business letters have legal validity．In times of dispute and doubt，they can provide substantial evidence to solve them．Many issues can be sorted out if mutual positions taken by transacting organizations are available through letters written by them．