Most of the time when vendors or suppliers provide goods to a company or organization, they require cash on delivery which is a good thing to establish mutual trust and professional relationship. Once both parties start trusting each other, they conduct most of the business on credit which means the company would pay the vendors some time after the delivery or most commonly, in small installments. In order to do so, the company has to write a formal request letter to the vendor or supplier in order to create a credit account. The business request letter for credit is used for this purpose.

Brief Description of Business Request Letter for Credit:

It is very common these days that when two business partners i.e. company owner and suppliers or vendors have a long trusting relationship, they agree to conduct the business on credit. It happens when the business owner feels that he can’t pay to the suppliers on delivery due to any reasons and as they are doing business for a long time, they can trust each other. So, the company owner writes this formal request letter to the supplier or vendor and asks him to open a credit account in his company that will allow the company owner to conduct the business on credit. After receiving the letter, it depends on the supplier or vendor if he agrees to the offer or wants to make some other deal with the business owner.

Sample Business Request Letter for Credit

To: chief executive officer

ABC business suppliers, main branch

New York NY 35094

Subject: request for credit account

Date: 29 January 2015

Dear Sir,

As you can recall that when I started this business, I didn’t have many contacts in the market and as the exclusive supplier, I chose your company and from that time, it’s been a great pleasure doing business with you. Since we started conducting business together, I always paid you in cash on delivery and sometimes I paid you in advance too. Now that we are in a professional relationship and you can understand that I am willing to continue this partnership in the future too, it’s time we talk about the payments.

As my business is expending, I am including more and more clients and when there are this many clients involved in the business, sometimes it’s not possible for me to arrange for the money on urgent basis due to cash circulation in the business.

This is why I am writing this formal request letter to you to open a credit account in your company so that we can conduct business on credit. We can sign an official agreement with the terms and conditions of doing business on credit and payment procedure on installments. You are most welcome to meet me in my office or I can set meeting with your assistant to talk more about this credit.

I hope you will understand my situation and consider this offer.

Regards,

Michael Marling

CEO of Global Software solutions

Main office, New York

Signature

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