Letter refusing a request for credit is one of the most difficult to write. Refusal will usually be prompt by doubt about the world – be borrower’s credit standings. but the letter contains no suggestion of this. Other reason for refusal must be found and tactfully explained. The letter that follows is a wholesaler’s reply to a trader who has started a new business that appears to be doing well, but which has not been established long enough to inspire confidence in the owner’s financial standing.
1225, Boston Street
Boston, MA 02123
Dear Mr Wardle,
SUBJECT: REFUSAL OF CREDIT
We were glad you approached us with a view to placing an
order and to learn that your new venture has got off to a good start.
The question of granting credit for newly established businesses is never an easy one. Not a few get into difficulties because they over commit themselves before they are thoroughly established, and although we believe that your own business promises well, we feel it would be better for you to make your purchases on a cash basis for the present. If this is not possible for the full amount, may we suggest that you cut the size of your order, say by one half. Should you be willing to do this we will allow you a cash discount of 3 per cent as a special concession in addition of course to our usual trade terms. At a later date, when your business is firmly established, we shall be very happy to welcome you as one of our credit customers.
If you accept our suggestion, as we hope you will, we will arrange for the goods to be delivered to you in three days’ time.
Please don’t look upon this letter as a refusal, but rather as a mark of our genuine wish to enter into business with you on terms that will bring lasting satisfaction to us both.
encl: <List of enclosed items goes here>