Before a trading account is opened, the terms should have been agreed in advance. Prior to accepting an order on a credit basis, you should take up trade references and conduct a credit check, to ensure there is a good prospect of receiving payment. You can then confirm the credit account has been opened using the following sample letter.
This is a good opportunity to inform the customer of any specific terms or procedures so you can be sure there will be no misunderstandings later on.
Letter granting credit to a business customer – sample 1
[Your Business Address]
[Business Address]
[Date]
Dear [Sales Manager’s Name]
Thank you for completing and returning our credit application form.
I have pleasure in informing you that a credit-trading account has been opened for you with a limit of [enter amount here] as requested. For your information here is a list of important points concerning our operating procedures.
(List your specific points here e.g.)
- Office hours are [list here]
- Orders are dispatched by courier on a three-working-day service. This means that orders received by (for example), 12 noon on Monday, delivery will be on Thursday.
- Next day delivery is available at an extra cost
- A detailed delivery note will be included in each consignment
- Invoices are emailed/posted at the time of dispatch so will usually arrive before the goods
- Your sales contact is either [Name 1] or [Name 2], but of course anyone in our office will be happy to accept telephone orders.
- Although we have no minimum order quantity, we will charge carriage costs on orders under [x amount]
Please do not hesitate to contact me, should you require any further information.
Yours Sincerely,
[Your name]
[Title]
[Name of Company]
[website address]
[phone number]
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