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    Credit Letters and Reply: Meeran Nabi Khan Abdus Samad Khawaja

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    Muhammad Adeel
    The document discusses credit letters and replies. It provides examples of request letters for credit and as a guarantor. It also discusses the key components that should be included in credit letters such as the recipient's information, purpose of the loan, terms, and security measures. The document outlines the types of replies that may be given - letters granting credit which state the decision and terms, or letters refusing credit which state the decision and reason. Credit is an important business practice that allows wholesale and retail operations to obtain products without upfront payment.

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    Credit Letters and Reply: Meeran Nabi Khan Abdus Samad Khawaja

    Uploaded by

    Muhammad Adeel
    430 views17 pages
    The document discusses credit letters and replies. It provides examples of request letters for credit and as a guarantor. It also discusses the key components that should be included in credit letters such as the recipient's information, purpose of the loan, terms, and security measures. The document outlines the types of replies that may be given - letters granting credit which state the decision and terms, or letters refusing credit which state the decision and reason. Credit is an important business practice that allows wholesale and retail operations to obtain products without upfront payment.

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    The document discusses credit letters and replies. It provides examples of request letters for credit and as a guarantor. It also discusses the key components that should be included in credit letters such as the recipient's information, purpose of the loan, terms, and security measures. The document outlines the types of replies that may be given - letters granting credit which state the decision and terms, or letters refusing credit which state the decision and reason. Credit is an important business practice that allows wholesale and retail operations to obtain products without upfront payment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    430 views17 pages

    Credit Letters and Reply: Meeran Nabi Khan Abdus Samad Khawaja

    Uploaded by

    Muhammad Adeel
    The document discusses credit letters and replies. It provides examples of request letters for credit and as a guarantor. It also discusses the key components that should be included in credit letters such as the recipient's information, purpose of the loan, terms, and security measures. The document outlines the types of replies that may be given - letters granting credit which state the decision and terms, or letters refusing credit which state the decision and reason. Credit is an important business practice that allows wholesale and retail operations to obtain products without upfront payment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    You are on page 1of 17
    At a glance
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    The key takeaways are that letters of credit are used to request loans or financial assistance for business purposes. They help facilitate business transactions by allowing purchase of goods before payment.

    The different types of letters of credit are ordinary letters of credit, which are addressed to a single person or organization, and circular letters of credit, which are addressed to multiple people or organizations.

    Key aspects that should be included are clear terms of the credit facility, convincing the recipient that payment will be made, and noting that credit is important for large scale business.

    Credit Letters and Reply

    Meeran Nabi Khan


    Abdus Samad Khawaja
    Credit Letter
    • A letter requesting to loan object of monetary is known
    as letter of credit
    • It is written to favor business facilities and financial
    assistance
    Credit Letter
    • Due to mutual relation, such a letter is
    communicated between sender receiver who are
    found to be business or personal friends
    Key Aspects
    • Buy now and pay later is a common practice of
    the business world
    • The writer should be able to convince the
    addressee that he will be honest
    Key Aspects
    • There should be no confusion regarding the terms
    of credit facility
    • Business on large scale is almost impossible
    without credit facility
    • It helps the wholesale dealers and retailers to
    obtain a product without making payment in
    advance
    Types Of Audience
    Ordinary letter of credit: Such a letter is
    addressed to single person or organization

    Circular letter of credit: Such a letter is


    addressed to various person or organizations
    Types of letter
    • Request for Credit: An individual is asking for
    credit from an Organization or a person

    • Request for Credit as a Guarantor: An


    organization requesting credit for an individual
    from another organization or a person
    Content Involved
    • Receiver’s name and address
    • Bearer’s name, address and complete
    identification
    • Bearer’s attested specimen signature
    • Objective of letter of credit
    Content Involved
    • Request for providing financial/help.
    • Proper documentation of the money receipt and
    forwarding of such as an evidence.
    • Reimbursement system of the paid amount.
    • Duration of the letter of credit
    • Security and cautiousness.
    • Assurance for similar future assistance.
    Request for Credit Example
    Globe Computer Solutions
    R-6, Sector – 26
    Noida , U.P. 201205
    0120-2635672
    gc_solution@gmail.com
    November 24, 2009

    Mr. T. Ramarao
    The Sales Manager
    HCL Technologies Ltd.
    B-45, Sector – 62
    Noida, U.P. 201207
    0120-2638975
    hcl_tech@gmail.com

    Dear Sir,

    Enclosed is our order for 100 Laptops

    Since we have good business relations with you and also that the lap-tops manufactured by you are the
    best, we would like to place an order of 100 lap-tops on 60 days credit. You may check our credit with
    Mr. Avinash Verma, General Manager, ICICI Bank, G-7, Sector – 42, Noida U.P.

    We hope to receive your favourable response at the earliest. In case you need any other information.
    Please contact us.

    Sincerely yours,
    Vinod Sharma
    Purchase Officer
    Request for Credit as a Guarantor
    Example
    The Omega Bank of Dhaka
    Motijheel Circular Area, Dhaka
    Dec. 1st, 04
    Letter of Credit
    Amount: Tk. 50.000.
    Valid up to: Jan 25.05
    Dear Sir,

    We are pleased to introduce Mr. Mijanur Rahman, sales Manager, Star Network Ltd, Dhaka, Who has been a
    valued customer of ours for the past ten (10) years. He is undertaking a tour of Chittagong, Khulna & Jessore to
    explore the possibilities of setting up distribution outlets in these districts for their computer accessories.

    We request you to provide him with required funds up to Tk. 50,000 (Taka fifty thousand only) against sight drafts
    drawn on this office; each draft is issued by you should be clearly marked with L/C 50287

    Â This L/C is valid up to Jan 25, 04 and all drafts during this period will be honored by us

    The amount of each draft should be entered on the back of this L/C.

    Yours faithfully,
    Khorshed Khan
    Manager, Trade service
    Trade service The Omega Bank of Dhaka.
    Types of Reply
    Letters granting credit
    • State the feedback
    • State the status of application
    • State the terms and condition
    Types of Reply
    Letters refusing credit
    • State the feedback
    • State the status of application
    • State the reason
    Letters granting credit
    Company
    Street Address
    City, State, Zip

    [Date]
    Addressee
    Street Address
    City, State, Zip

    Dear _____________,
    Thank you for expressing your confidence and goodwill by requesting a charge account.
    Your references have been verified, and we have received satisfactory reviews from your
    associates. An account has been opened for you, and we trust that you will use it soon and
    often. You can order conveniently by telephone or on our website.
    The terms for your account will be Net 30 Days; our accounting department will print your
    statement on the last day of each month, and then any credited payment will be due within
    30 days.
    Now that you are an account holder, we will give you advance notice of any special sales
    or other features of interest. We will also ensure that your needs are responded to on a VIP
    basis.
    Thank you again for your credit application.
    We look forward to working with you in the very near future.
    Sincerely yours,
    Letters rejecting credit
    Company
    Street Address
    City, State, Zip

    Addressee
    Street Address
    City, State, Zip

    Dear ______________,

    Thank you for your recent order and your application for a line of credit with our company.
    When determining customers' eligibility to open charge accounts, we fully investigate each
    applicant, and we must always follow company policy.
    We have reviewed your references and the other information provided on your application.
    Based on the findings of our credit review process, we cannot justify opening an account
    for you. If you believe that our decision is unwarranted, then please feel free to contact us
    so that we may give you further details about our decision. We will still process and deliver
    your order after payment is received. Your credit application will remain on file, and you
    may reapply at any time.
    Very truly yours,
    Quiz

    Please be seated with 3 feet distance


    (minimum)
    There are 4 versions of this quiz so if you
    cheat, the joke is on you
    Thank You

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