GUIDELINES

  1. Reference letters might be confusing, especially if you are not able to write a positive reference. The way you respond should be professional, polite and civil. Write only the truth and do not write based on your emotions. If the customer with the problem has a good credit record with your company and unavoidably made mistakes with his or her account, do not draw unnecessary attention to his or her mistakes by repeating them on the start and the end of your letter.
  2. Explain the objective of the letter and provide the name of the customer. If possible, also explain that the information is to be kept as secret.
  3. Provide the information he or she requested. If possible, check it with any forms or reports where you might have included with your reference.

SAMPLE LETTER

[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-


Dear [Recipients Name],

As requested, I have generated a credit report for Natalie Webster. She has been with us for quite a while, and her history with us is inconsistent. For instance, she took out a loan with us for an automobile in 2004. She did not make a single payment, and the car war repossessed. However, in 2003, she took out a substantial loan for home improvements and paid every penny back without any difficulties. Her bank account is always full, and she has never incurred insufficient funds on it. I do not know what I would suggest to you as to taking on her business. I can tell you that currently, by our bank's standards, we would agree to a small loan for her. I know this is not much help, but it is the best I can offer.

Good luck in deciding and if you have further questions, I would be happy to help.

Sincerely,

[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Example credit reference letter of a client.

Further things to consider when writing credit letters to banks

Further things to consider when writing credit letters to banks

Credit Letters

Credit letters are a written commitment by a third party, issued to guarantee payment of goods and services only, when the seller provides the acceptable documentation. Credit letters are usually issued by financial institutions such as banks. However, in some cases, mutual funds and insurance companies may issue these letters under certain circumstances. Credit letters are used to guarantee that the buyers' payments to the sellers will be received for the correct amount and on time. If something comes up and the buyer is unable to pay the seller, the financial institution that issued the letter pays the seller.

Credit letters are usually instructions, so you only need to include basic details. Include details of the seller, the buyer, the receiving bank as well as the amount of money to be transferred. Since this is a formal letter, the tone must be professional. For added security, include a list of terms and conditions, which all parties agree on. Where appropriate and if necessary, mention any requirements from the seller. Let all parties know that the amount can be drawn any time from the day the letter is written to the time it expires.

Letters to Banks

Letters to banks are letters sent specifically to the banks by their customers. The letters can be addressed to bank managers or any other relevant bank official, based on the situation at hand. There are various reasons why you may want to write a letter to the bank. The most common ones include to request for a new ATM card, to ask for funds transfer from one account to another, or to open or close an account. You can also write to inform the bank about a phone number or postal address change. In all these situations, letters to the bank must remain formal and professional.

Before writing letters to banks, you need to make sure that you have all the information the bank may need regarding your account. Use the standard business greetings. If you know the recipient's name, write to him/her by name. Mention the purpose of the letter. Provide all the necessary information such as account number, name, postal and email address, contact number, etc. as registered with the bank. Be specific and avoid writing the same thing twice. Keep the letter simple and concise. Wrap the letter up by calling the recipient to appropriate action.

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