Requesting Bank Credit Information

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.