10+ Sample Letter Of Credit

A credit letter is a bridge between the creditor and the customer. The motive behind writing a credit letter could be different, for example you are requesting for credit, or demand of credit that is payable, approve or deny loan or application for a credit card. Letters of credit or Credit letters mainly are used to convey a message from creditor to the customer, informing that such an amount is due, it may include a mode of payment or a time specified for it.

As credit letter is an official document, it should be formal; having a subject matter, clearly indicating what is the reason behind this letter. If you are denying someone’s request of credit, the tone should be courteous and polite yet professional. If you are denying a request for credit, do keep in mind that you should open the possibilities of future business with the party. So you should keep your letter on a certain point, which does not allow you to accept the request. Explain the reasons properly so that the recipient could understand it properly.

In case of a demand for a credit, that is due on the customer, you should point out that the credit is due, and time of payment has lapsed. If the payment is a month late you should encourage the customer or the recipient that he or she should contact you, to discuss the lapse of time and payment. If there is an overdue more than two months and customer is still not showing ay interest in the payment then you should tell him or her that if still payment is not made what could be the penalty. Avoid giving any threat, but you should be clearly mentioned that you have decided to take an action; you should be clear what could be the next step towards it. A credit letter should be straight forward and purely businesslike. It should be encouraging for the client for future deeds. Here are some samples of credit letter attached with this template.