Category: Credit Letters

Credit letters are documents sent by an individual or a company or a business organization to another individual or company asking for credit. Such letters are usually professional documents and must be written in a corresponding style.

• Credit letters are extremely important since the request for credit will be judged primarily on the basis of the letter and its arguments, and hence the document provides the first impression which can be very valuable.

• They must be well reasoned. The need for the credit must be mentioned and the credibility of the sender must be established. All necessary details like bank account, financial condition, current loans and debts and so on must be clearly put forward in the credit letter.

• All the information provided in the credit letter must be absolutely verified and accurate. Incorrect information in a credit letter can have legal repercussions. The tone of the credit letter must be polite and humble and the letter must on no account be imposing.

• The amount of credit needed and the purpose for which it is needed must be included. More importantly, why the recipient should consider extending financial help to the sender must be mentioned as well.

Credit Letter

Free Credit Letter

Sample Credit Letter

Credit Letter Format

Credit Letter Template

Credit Letter Example

Transferable Letter of Credit

Standby Letter of Credit

Revolving Letter of Credit

Red Clause Letter of Credit

Letter of Credit

Letter of Credit at Sight

Documentary Letter of Credit

Credit Dispute Letter

Credit Reference Letter

Credit Inquiry Letter

Credit Analyst Cover Letter

Credit Analyst Thank You Letter

Credit Authorization Letter

Credit Application Letter

To,

Tyra Banks

Regional Head

Bank of Credit

Regina Towers

23 Gordon Street

Gotham City 2345

United Kingdom.

Dated: 1oth of February 2009

Subject: To issue credit on submission of documents

 

Respected Madam,

This letter is to apply to your financial institution for credit for the purchase made by us from the seller. In order to get the credit approved we are ready to submit the necessary documents that comply with the terms and conditions of the credit.

Our organization is an importer of coffee from Brewing Limited, the exporter which is an international organization based in Brazil. We would request you to reimburse the exporter for the goods and services provided by them. We assure that we would submit all the necessary documents before hand so that you can make the reimbursement.

I hope you understand that the above request is beneficial for our business if you approve it.

Thanking you,

John Woo

Nest Coffee.

To,

Brett Lee

Managing Director

Buy and Sell Limited

12 West End Road,

London 3456

United Kingdom

Subject: Letter of credit at sight

Dear Sir,

This letter is in response to your application to offer credit to your organization in order to buy goods from the seller. We are ready to offer credit at sight.

You had written to us that your organization needs credit for making purchase of raw materials from the supplier. We agree to offer you credit but we would pay the required amount to the seller at sight, but ten days prior to purchase you have to submit the necessary documents to us. We would also bring to your notice that from the total amount to be paid we would deduct a certain amount as transaction fees.

I believe that you would consider the above terms and conditions and submit the required documents with us before the purchase.

Yours sincerely,

Jane Austen,

Morgan Chase Bank.

To,

Elvis Presley,

Branch Manager

Reserve Bank of London

14 Chaplin Charlie Road,

London 2378

United Kingdom.

Subject: Credit to guarantee payment to the seller

Respected Sir,

This letter is to apply for credit from your financial institution for the purchases made from our vendors.

We, at Oliver Manufacturers buy readymade clothes from various vendors. We have plans to extend our company and as a result have made lots of investments for that. Even the market last year was low, so the profit was not as high compared to previous years. Thus, we would require credit to make immediate payment to the vendors or else they may refuse to supply the products.

We are ready to accept the interest rate on the installments that we will have to pay you in order to return the credit.

It would be great for our business if you process the above request.

Thanking you,

Jane Austen

Oliver Manufacturers

To,

Terry Morgan

Branch Manager

Morgan Chase Bank

567 Down Inn Street

North Success 2345

UK

Subject: Red clause letter of credit

Respected Sir,

This letter is to request you to initiate an advance to the buyer so that he can pay for the initial expenses incurred by us. The advance will be to cover the cost of delivery of goods exported by us.

We, at Iron Manufacturers based in Italy specialize in manufacturing iron scraps and supply that to Real Steel Limited who has applied for credit to make purchase from your financial institution. I believe that Real Steel Limited has mentioned about us in the letter of credit.

I understand that by doing so the buyer will be bearing a financial risk as he is paying us an unsecured loan, but at the same time we also need cover the deliver cost. I hope you would consider the above request.

Thanking you,

Jane Myer

Iron Manufacturers

To,

Roger Moore,

Head of Sales Department

Iron Scrap Suppliers

23 Hilly Billy Road

Leeds 4567

United Kingdom

Dated: 12^th of November 2011

Subject: To approve revolving line of credit

Respected Sir,

This letter is in regards to the business transaction between your organization and ours. This  to inform you that we would like to request you to make the delivery of goods in multiple shipments instead of one so that the credit is revolving.

Our organization Steel Limited buys iron scraps from your organization in bulk once every year. We would like to purchase the iron scraps in parts as we may not be able to make the complete payment at one go. It will be convenient for us if there is a revolving line of credit.

I believe you will consider the long and healthy business relationship that we have since last ten years and approve our above request.

Yours sincerely,
Luke Wilson.

To,

Orson Welles

Credit Department Head

Finance Bank of Credit

22 Rock High Road,

New Hampshire 6723

United Kingdom.

Subject: Letter to become a standby for the purchase made

Respected Mr. Welles,

I, Lenny Ben on behalf of Gas Garments Limited am writing this letter to request you to become a standby for the amount incurred by us to make purchase for our business transaction.

Our organization specializes is making fashion garments. In order to design our garments we need to purchase cotton cloth materials from various manufacturers. I hope that you must be knowing that there are ups and downs in business, so there may times we may be unable to pay the complete purchase amount to the manufacturer. In such cases it would be a relief if you stand as our last resort for making payment.

I would be obliged if you approve this request.

Thanking You,

John Smith

Sales Manager, Gas Garments Limited

To,

Henry Lee

Relationship Manager

JP Morgan Bank

21 Yankee Doodle Street

Leeds 2345

United Kingdom

Dated: 15^th of December 2011

Subject: Letter for transferring the credit amount

Respected Sir,

This letter is to inform you that I would like to transfer a certain amount of the credit being offered by your organization to Hot Deal Manufacturers.
I would like to make Hot Deal Manufacturers the second beneficiary for the credit approved to us for making purchase from the seller.  It will be a partial transfer of credit. Hot Deal Manufacturers will also have access to the rights and obligations to the credit facility like our organization. They will also be responsible for returning the credit amount to your bank with the interest rate.

I would be highly grateful if you could approve the transfer of credit and process it. It will be beneficial for our organization.

Thanking you,

Nathan Ben,

MD, Gas Garments Ltd.

To,

Name [name of the recipient]

Designation [designation in which the recipient is working in the organization]

Name [name of the organization]

Address [the address of the organization]

Date [the date on which this letter is being written]

Subject [write the exact subject for which the letter is being written]

Dear Sir/ Madam [write the appropriate way of addressing the recipient]

First paragraph: [The first paragraph should state the purpose for which for which the sender is writing the letter. If the sender is writing on behalf of an organization, he should state the name of the organization.

Second paragraph: [In the second paragraph the sender gives details about the financial transaction that he is making for which he requires credit and also the name of the seller]

Third paragraph: [In this paragraph the sender will show gratitude and request for the credit to be approved]

Thanking you,

Name [write the name of the sender]

To,

Ken West

Credit Department Head

Finance Bank of Credit

1 Aspen High Road,

New Hampshire 6789

United Kingdom.

Subject: Credit to make complete payment to the seller

Respected Sir,

This letter is to inform you that our organization would like your financial organization to stand as guarantor of the partial amount for the purchase made from the seller.

Our organization, Real Steel Manufacturers specializes in making steel products from raw iron and iron ore. We need to purchase iron from various suppliers and it sometimes becomes difficult to make complete payment to the seller. So, we would like you to provide us credit and make partial payment of the selling amount. We are aware about the interest rate charged by your organization and ready to bear that.

I would request you to approve the credit . I am also attaching few documents stating the profile of our company.

Thanking you,

Brett Lee,

Manager, Real Steel Manufacturers