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Reply while waiting for references

In some cases you will not be able to grant credit without making further investigations. In particular, you may want to take up the references your customer has offered. In these cases, your reply will be little more than an acknowledgement of the request.

Thank you for your letter in which you asked for credit facilities. At present we are writing to the referees you mentioned and will let you know as soon as we hear from them.

In reply to your letter of 8 June, we will consider your request to pay by 30-day bill of exchange and will contact you as soon as we have reached a decision. I received your letter of 15 March, yesterday, in which you asked for open account facilities. As soon as the usual enquiries have been made, I will contact you.

As we have only just received your letter asking for credit facilities, please would you allow us a little time to consider the matter? We will be answering you within the next couple of weeks.

R. Hughes & Son Ltd.

Mead Road, Swansea, Glamorgan 3ST1DR


Telephone: Swansea58441 VAT No. 215 2261 30



Mr R. Cliff, 18th July 20

Homemakers Ltd,,

54-59 Riverside,

Cardiff 1JW


Dear Mr Cliff,

I have enclosed an order, No. 1662, for seven more 'Sleepcomfy' beds which have proved to be a popular line here, and will pay for them as usual on invoice. However, I wondered if in future you would allow me to settle my accounts by monthly statement which would be a more convenient method of payment for me.

As we have been dealing with one another for some time, I think you have enough confidence in my firm to allow open account facilities, but of course I can supply the necessary references.

Yours sincerely,

R. Hughes

Encl. Order No. B1662



Specimen letters



Request for open-account facilities

Mr Hughes, whose correspondence we looked at in previous units (3.3.5,4.3.6, 6.6.5,6.6.6,7.4.1, 7.4.2), asks his supplier if he will allow him open account facilities. He makes his request while sending an order rather than making his next order conditional on Mr Cliff's acceptance; compare this with the letter of 6.3.4 when F. Lynch & Co. made their next order conditional on revised terms.



Reply granting open-account facilities

In their reply to 8.5.1, Homemakers are prepared to give credit even though they feel it may not be in the best interests of their customer.


1. Why does Mr Cliff think it would be better for Mr Hughes to settle invoices within seven days?

2. Why doesn't Mr Cliff need any references from Mr Hughes?

3. When should Mr Hughes pay invoice DM1113?

4. What form of open account facilities is Mr Cliff offering?



54-59 Riverside, Cardiff CF] 1JW

Telephone: (0222) 4972) Registered No. C135162


Telex: 38217


Mr R. Hughes 24 July 20

R. Hughes & Son Ltd.

21 Mead Road


Glamorgan 3ST1DR


Dear Mr Hughes,

Thank you for your order, No. B1662, which will be sent to you tomorrow. I have taken the opportunity to enclose the invoice, DM1113, with this letter.

With regard to your request for open account facilities, settlement against monthly statement, 1 feel there would be more advantage for you in claiming the 3% cash discounts offered for payment within seven days of receipt of invoice. Nevertheless, I am quite prepared to allow monthly settlements, and there will be no need to supply references as you are a long-standing customer.

The enclosed invoice will be included in your next statement. Yours sincerely,

R. Cliff

Enc. Invoice DM1113

Disc SA

251 rue des Ramonieres F-86000 Poitiers Cedex

Tel: (331 99681031 Telecopie: (33) 102163

Ref: PG/AL 3 December 20


The Sales Director

R. G, Electronics AG

Haumart 601

D-5000 Koln 1


Dear Herr Gerlach,

I intend to place a substantial order with you in the next few weeks and wondered what sort of credit facilities your company offered.

As you know, over the past months 1 have placed a number of orders with you and settled promptly, so I hope this has established my reputation with your company, Nevertheless, if necessary, I am willing to supply references.

Please let me know if I could settle future accounts on, say, quarterly terms with payments against statements.

Yours sincerely,

P, Gerard



Date: 2016-01-03; view: 1296

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