Authorization Letter Template

It’s 2 PM, and the bank closes in an hour or so. It’s nearly the end of the working day, and you need to apply for a line of credit with the bank to order that inventory on the weekend. But you can’t seem to tear yourself away from your desk; things are chaotic right now. So, what do you do?

Relax; you can delegate it to someone. With the right paperwork, your manager can head to the bank and sort out the credit line. Just download an authorization letter template, customize it to your situation, print it, sign it, and you’re good to go. 

What is an Authorization Letter, and Why Do You Need It?

The authorization letter is a simple letter authorizing a nominated person to take specific actions on your behalf. One of the most common frequently asked questions is if the authorization letter is the same thing as “power of attorney,” and no, it’s not.

The authorization letter is used for easy tasks, like our example of applying for a line of credit at the bank. It doesn’t give the letterholder control over a bank account, even if they have the account number on hand. 

When you sign an authorization letter, it becomes a legal document, and the letterholder can make decisions on your behalf within certain limits. 

You’ll use the letter when you aren’t able to be physically present for something, like meeting the bank manager, collecting travel documents, etc.

What are the Different Purposes for Authorization Letters?

The “authorization letter” is a blanket term covering several different types of authorization letters suited to different purposes. While the overarching purpose of the letter is the same in all cases, i.e., you grant permission to an authorized person to do something on your behalf, the scope of authority and the purpose of the letter can change its contents and structure. Let’s run through some of the common types of authorization letters.

Bank Authorization Letter

The bank authorization letter is the perfect document for the scenario we outlined earlier. If you need someone to attend to banking and financial decisions or coordinate your accounts, this letter authorizes a nominated person at your company to handle these details. Typically, you’ll give the letter to the bank manager, and they’ll make a note on the account so that you don’t need to bring a letter along with you each time you need to get something done at the bank. 

Financial Authorization Letter

This type of authorization letter might seem similar to the bank version, but it’s for a different purpose. This letter authorizes someone at a company to make financial decisions on behalf of the C-suite. For instance, if the CEO can’t make it to a meeting to close a deal, they’ll send a nominated representative with an authorization letter to show they have the authority to negotiate or make financial decisions in the deal.

Medical Authorization Letter

The medical authorization letter authorizes another person to make medical decisions on their behalf. For instance, they might be unable to communicate with their healthcare provider or insurance company, and they’ll nominate someone else to handle these issues while they are incapacitated.

Travel Authorization Letter

This document is for kids traveling alone. For example, your child might be flying on a plane by themselves. You drop them off at the airport, and someone picks them up at their destination. The travel authorization letter serves as proof that the minor can travel alone under their parent’s permission. 

Legal Authorization Letter

This form of authorization letter doesn’t need to come from a law firm for it to be a binding legal document. It’s a letter authorizing someone to act on your behalf in legal affairs. In personal matters, you might use it to allow someone to collect documents from an embassy on your behalf. Or, if you’re selling your home, you could use it to authorize the agent to start moving forward with listing the property and finding buyers.

Business Authorization Letter

The business community also refers to this document as an “LOA,” and it’s useful for delegating responsibilities from the executive suite to management or from management to employees. This business letter gives the nominated person the power to act on behalf of the company and make decisions, like in our first example with applying for the credit line.

Childcare Authorization Letter

This document gives adults guardianship powers over their children. The letterholder can make medical and healthcare decisions for minors under 18 who aren’t their children. For example, you’re going on a trip and leave your kids with their aunt for the weekend. You would give her the letter to prove she has the authority to make these decisions.

What Information Is in the Authorization Letter?

Collecting documents like passports is serious business. If you’re sending someone to collect them on your behalf, they’ll need an authorization letter. The person collecting the documents will need the letter and a form of photo identification, like a driver’s license, to verify who they are. 

The letter needs to contain specific information outlining the scope of authority the authorized person has in their dealings. For instance, someone who is collecting your passport might collect it, but they can’t apply for a visa on your behalf using the same authorization letter.

Make sure you include the following information in the authorization letter.

• Your contact information.
• ID information.
• Your full name.
• The name of the person holding the letter.
• The period of authorization, including the start and end date.
• The phone number of the person authorizing the letter.
• The city in which the document is valid.

Tips for Writing Authorization Letters

Since the authorization letter is a legal document, it’s a good idea to understand how to write one properly. For starters, always ensure your LOA is on letterhead if the authorization is coming from a company. If you’re dealing with the bank, they’ll want to see a letterhead, or it will raise suspicion of fraud.

You don’t need to write a long, formal letter. The idea is to keep the letter as short and to the point as possible. Include only the information the person needs to know to prove that the letterholder is an authorized person. Since it’s a formal document, use a friendly but formal writing tone and keep the wording brief and straightforward. 

Date the letter and show the period of authorization. Does the LOA have an indefinite authorization period? If so, note that in the letter. 

Mention the authorized person’s identification details in the letter and communicate clearly any instructions in the letter that you want the other party to carry out on your behalf. The receiving party to the letter shouldn’t assume anything that isn’t directly indicated in the letter.

When Do You Notarize an Authorization Letter?

Occasionally, the parties to the authorization letter, namely the person who wrote it and the authorized person, may get into a dispute. For an authorization letter to have weight in court proceedings, it must be an officially notarized document. 

It’s not necessary to always notarize an LOA, but it’s a good idea to get it done if you want to avoid legal issues later. 

A notary public witnesses the signing of the document, making it a binding legal agreement in the eyes of the courts. Notarizing the letter is necessary in financial, legal, child custody, and medical matters. 

Download a Free Authorization Letter Template with a Trial of FreshDox.com

Don’t waste hours on Google Docs writing an authorization letter. Download a fully customizable letter of authorization template from the FreshDox library. 

We have thousands of legal, financial, medical, and educational documents for any purpose. Edit your template, download it in Word or PDF, and use it for any purpose you like. Our authorization letter sample is free when you sign up for a 7-day trial of a Basic or Premium account.