Sample letter granting credit to a business customer

Approve credit account for business customerBefore 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.)

  1. Office hours are [list here]
  2. 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.
    1. Next day delivery is available at an extra cost
  3. A detailed delivery note will be included in each consignment
  4. Invoices are emailed/posted at the time of dispatch so will usually arrive before the goods
  5. Your sales contact is either [Name 1] or [Name 2], but of course anyone in our office will be happy to accept telephone orders.
  6. 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]