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—
Cardiff ÑÏ 1JW
Dear Mr Cliff,
I have enclosed an order, No. Â1662, 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.
Encl. Order No. B1662
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
Mr R. Hughes 24 July 20—
R. Hughes & Son Ltd.
21 Mead Road
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,
Enc. Invoice DM1113
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
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.