Client Rejection Letter (Format & Example)

As a company, receiving a client request can be a major morale boost. It is often an indication that your skills and reputation are in demand. This is why it can be complicated and scary to turn down a client, even when necessary. Here, we highlight everything you need to know to draft a polite and professional client rejection letter.

Saying no to a paying client might seem ill-conceived. However, some situations call for it. You can reject a client’s proposal if your past working relationship was difficult or if their values don’t align with yours. You can also say no simply because you don’t have enough time to take up the project.

While you want to communicate your rejection, you also don’t want to harm your relationship with the client. Achieving this will require you to be strategic and courteous.

Your relationship with your clients is crucial to your success as a business. This is why any interactions with them should be courteous and professional, including request rejections. When drafting a client rejection letter, remember the aim is to deliver your message without alienating the client. Here are some writing pointers to help you draft your letter:

• Send the letter promptly. This will allow the client to make other plans or look for a different supplier, contractor, or company.
• Thank the client for showing an interest in working with you. If they are a previous client, express your gratitude for past collaborations.
• Mention why you are rejecting the client’s request or proposal. Are you short on manpower? Are you currently busy with another project?
• Offer possible solutions. If you can handle the project at a later date, provide the client with this option. You can also refer them to a different company.
• Encourage the client to contact you with future projects.
• Maintain a polite and professional tone
• Close the letter with your official name, signature, job title, and company letterhead
• End on a positive note

Client Rejection Letter (Word Template)

Saying no to a client is a business decision. You should never allow guilt or fear to influence your choice. That said, you should also strive to maintain a good relationship with the rejected client. Use your client rejection letter to politely explain why you have to say no. If you foresee a future with the client, welcome them to reach out to you on future projects. If not, state why you think your business is not a good match for them.

Most importantly, keep your letter short, factual, and to the point. Don’t let it read like a lengthy apology letter, as this will make you sound unprofessional and unsure.