Requesting Bank Credit Information

Comment: Letters requesting credit information from references supplied by the customer should be concise, asking only for information that a financial institution normally gives out. The reputation of the custom, balances carried by the customer, loans outstanding, and method of repayment, are significant factors to be dealt with. Character, capacity and capital – the traditional three C’s of credit – are the basis on which evaluations of risk are usually made. Above all, assure the financial institution that all information will be held in confidence. Be sure to enclose a postage prepaid return envelope. (NOTE: Some credit executives use the facilities of their bank to obtain information from the customer’s bank)

Example 4

Your bank has been listed as a reference by (company name) in connection with the initial opening of a line of credit with our company.

We would appreciate receiving any information concerning the financial reputation and background of this firm. Any other pertinent credit data would also be welcomed.

Your reply and information will, of course, be held in confidence, and without recourse to you.

Example 4A

The (name of company) is in the process of opening an account with our company and has listed your bank as a reference.

We would like to learn as much as possible about the business and financial reputation of this firm based on the information, which you may have. Your reply would be helpful to us in setting up a line of credit for this company.

We will appreciate your courtesy in promptly providing this information, which will of course be held in confidence.

Order: Asking Permission to Ship COD

Comment: It may seem impossible to establish goodwill while refusing credit, but it CAN be done. At least you can be sure you will not create will with the following model letters. Even when you ask permission to ship COD, you can ask for it constructively … as a temporary measure until you are given a basis for open terms. And, in addition, when you tactfully indicate what you can do – ship on a COD basis – you have also told the reader what you can’t (or won’t) do – ship on credit terms. Anyone who is entitled to consideration from you will understand – if your tone is friendly and you show a sincere desire to be helpful.

Example 5

You want the order you just sent us, and we want to ship it to you as soon as possible.

But, we don’t have enough information to open your account with us. May we send your order COD this time? Please also send us a (certified) financial statement (or complete and return the enclosed credit application), so that by the time you order again, we’ll have your account set up so we can ship orders to you on open credit terms.

The moment we have your reply and permission to hip your order COD, it will be on its way to you.

Example 5A

Your order is greatly appreciated, and we’re anxious to send it to you as soon as possible.

But unfortunately, the information we have doesn’t provide a sufficient basis for extending credit just now. May we have your permission to ship this merchandise to you COD? Then you will have it right away ... and by the next time you call on us, you can probably send us additional financial data, which will enable us to open an account for you.

We’re sorry this delay is necessary, but the moment your reply is received, we’ll ship your order at once. So, may we hear from you soon?

Discounts: Acknowledging Payment – Unearned Discount

Comment: Unearned discounts always pose a problem in letter writing tact. New customers do not always know about discount terms, but they can be developed into excellent “discount customers” – if they are handled right. The following two model letters tell a customer diplomatically that you are “allowing the discount this time”, but you expect that discount dates and terms will be met promptly in the future. In the case of an honest error, you will have made a friend; and if somebody is trying to “put one over,” the hint will probably be strong enough. At least, you will establish a precedent on which to disallow the discount the next time.

Example 6

Thank you very much for your payment of $( ) for invoices of (date).

Since you are anxious to get the greatest possible (benefits / profits) from our (service / merchandise), you will want to take advantage of our discount privileges.

Our terms of sale are ___ and invoices paid by (date and other pertinent information) earn a discount amount of (amount).

Your confidence in us is appreciated, and we’ll do whatever we can to serve your best interests. If you have any questions regarding our terms or if we can be of help in any way, please let us hear from you.

Example 6A

Thank you for your payment of $( ) for invoices of (describe).

But did you realize it was mailed after the discount period, which ended (date)? You see, our terms specify that payment must be made within 10 days of the date of invoice … not receipt of merchandise … to take advantage of the discount.

As you may have misunderstood our terms, we’ll allow you the deduction this time. However, to ensure you this extra profit in the future, we count on your cooperation in sending us your check in the time limit of our terms.

Request for Check to Release Order

Comment: It is true that some customers will not pay invoices until they need new merchandise, or until some kind of pressure is applied to get them to pay. Sometimes a customer sends in an order for an amount, which is above that which you think he can easily pay, so you must write him for money – for a payment of current invoices. The temptation is to put it aside, but sooner or later, you must write. And while you are doing that, why not ask for another order? Perhaps these model letters will give you ideas on how to be firm, tactful, and respectfully aggressive in asking for more business.

Example 7

Thank you very much for the order you just sent us. We would like to ship it today, but we must have your help before we do.

Your last payment of $( ) paid (invoice numbers). Now, and I’m sure you will agree, the condition of your account calls for a substantial payment before your new order is shipped.

Your account shows a past due balance of $( ), dating back as far as (date of oldest invoice due) and running on through to the current invoice, which was due (date).

So we may process your order as quickly as possible, please send your check for $( ) immediately.

Example 7A

Thank you for your order, which we have just received. We would like to send it immediately, but we are faced with a problem. Specifically, it’s your past due account.

It may be hard to believe, but it has been over three months since we shipped your last order – and we still haven’t received payment. This is a long time to wait for a check from a firm with your reputation.

Before you put this letter aside, won’t you please send a check for $(xxxx) covering your past due balance? Then we can ship your new order at once.

May we please hear from you soon?

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