Credit Information

Business firms are under no obligation whatsoever to answer credit inquiries. Usually, however, they are quite willing to co-operate, knowing that they, too, have to ask similar favours from time to time.

In replies to credit inquiries, the name of the person or firm about whom information is given is often omitted; instead, reference is made to the firm in question, the firm mentioned in your letter, the firm about which you inquire, etc.

Specimen Letters

I. Credit Inquiry

Private and Confidential

Dear Sirs,

We have been referred to you by the firm mentioned on the enclosed slip and should be glad if you would give us as detailed information as possible regarding their financial status and business reputation. In particular, we should like to know whether, in your opinion, a credit to the extent of approx. £3,000 could be safely granted.

We thank you for your courtesy and assure you that your information will be treated confidentially. For your convenience we enclose a stamped and addressed envelope.

Yours faithfully,

Encl.

II. Credit Inquiry

ROAD EQUIPMENT COMPANY

116 N. La salle street, chicago 1, ill.

TELEPHONE

RANDOLPH 8-6430

February 3, 20…

John Miles Tractor Company

619 Stonegate Road

Peoria, Ill. 61601

Re: Cooper Construction Company

Springfield, Illinois

Gentlemen:

We understand that you are familiar with the affairs of the above company, from which we have just received a large order.

Will you kindly give us your opinion of the company's financial responsibility, credit standing, and general management. If you are granting accommodations, we should like to know the extent of the accommodation, the amount at present owing you and, if on a secured basis, the nature of the security.

Your reply will be appreciated, and we assure you that any information you may give us will be held in strict confidence. Should the occasion present itself, we shall be very glad to reciprocate the favor.

Yours very truly,

C.F. Cummings

Credit Department

CFCummings:jn

III. Favourable Information

Private and Confidential

Dear Sirs,

Messrs. Johnson & Co., about whom you inquire in your letter of 17th March, have done business with us for the past two years. Orders have been comparatively small and payments regular, with a short delay in one case. Our representative reports that the firm is sound and reliable. A credit of £400 would appear to be in order.

This information is given in confidence and without responsibility on our part.

Yours faithfully,

IV. Unfavourable Information

Private and Confidential

Gentlemen:

We regret to state, in response to your letter of May 28, that our experience with the firm in question has not been satisfactory.

During the ten months they have had an account with us, we have repeatedly had difficulties in collecting bills. It seems that their financial position is not very strong.

Under these circumstances we would advise you to proceed with caution and, if possible, to do business on cash terms only.

This information is given without any obligation on our part, and we trust that it will be held strictly confidential.

Very truly yours,