Credit letter sample

There may be circumstances where you must deny a person credit or begin the collection process. While writing a credit letter, pay careful attention to maintain a courteous tone. Remember that a person’s eligibility for credit changes from time to time. The same person, whom you want to deny credit at the moment, might be eligible for it sometime later.

In cases where you have to deny a request for credit, make it clear that you are willing to accept future applications from the same party.

If payment is late, politely ask for an explanation and encourage the person to contact you to discuss his or her financial problems that led to the lapse in payment. If the customer shows no interest in making the payment even after receiving the first credit letter, don’t hesitate to let him or her know exactly what the penalty will be if they do not respond immediately with the payment. Important: Don’t threaten the customer with dire consequences unless you are prepared to follow through.

Be brief

Letters of credit should be brief and to the point. That said, you must still include all relevant details. Custom credit letters work better than generic ones.

Be confident and persuasive. Being assertive is fine, but make sure that your tone is not overbearing. Also assure your reader that any information that they share with you will remain confidential.

Credit letter sample

Sample 1

We are writing to inform you that your account payment has been overdue for over 90 days. Furthermore, our two previous letters received no response from you. Under these circumstances, we must warn you that if your payment does not reach us within 15 days, the matter will be turned over to a collection agency.

We understand that our customers are busy and it can be difficult to meet all obligations on time. Nonetheless, making payments before the due date is absolutely essential for a customer to maintain a good credit history. Now in case, you need more time to make the payment, you may meet the manager to discuss your situation.

Credit letter sample 2

We are disappointed that your payment has been overdue for over 60 days. Regardless of our efforts to solve the issue, you have neither made the payment nor responded to our letters. Now you have just two options: Make full payment now to avoid further collection action or become prepared to face legal action. A court judgement can be expensive and if it goes against you, it will seriously damage your credit record.

Sections in this article

Cover letter writing tips
What to write and what not to write in a cover letter

Letter writing: formal and informal

Introduction
Address and date
Salutation
Body of the letter
Subscription or leave-taking
The Tone and Language of a Letter
Personal Letter Writing Tips
Envelope
Example of formal letter and envelope
Formal Letter Sample 2
Formal letter sample 3
Formal letter sample 4
Formal letter writing basics
Standard phrases used in formal letters
Example of informal letter and envelope
Informal Letter Sample 2
Informal Letter Sample 3
Informal Letter Sample 4