There is hardly any business on planet Earth that runs free of credit. In order to successfully run your business and build up a good reputation in the market, you often have to facilitate your clients with credit. Nevertheless, it is good that you ask the debtor for a written request for credit so that you have a proof that he/she owes you something. The written application should be adequately responded with rejection or a proper credit acceptance letter. It should either have an Appendix B attached with it that state the terms and conditions of the credit facility awarded, or they can be written in the body of the letter. Moreover, the time period of the credit facility should also be mentioned to clear any ambiguity. This is so both the parties know what they are signing up for.
Starting the Letter
Write your name and designation at the top left, followed by the business address, city, zip code, landline number and email.
(Authorized person’s Name)
(City and Zip Code)
This information is filled in much the same way as above. It is advised to write full name of the borrower and in case it is a company, then the person who is authorized by the company should be mentioned, along with the company name.
(City and Zip Code)
The date can always be written in the very beginning right at the top, but according to the latest way of letter writing, it should be right below the recipient’s information with a one line gap.
This step simply involves addressing the recipient. You can write Dear Mr. / Ms. / Mrs. And if it a company you write it as MS- XYZ Enterprise.
Accepted or rejected, this is to be simply mentioned in the subject in bold and capital letters. However, the correct way of writing it is: "ACCEPTANCE OF CREDIT APPLICATION."
Body of the Letter
This is just an elaboration of the subject and simply explains the reasons for acceptance or rejection. It may be divided into two parts if the application is accepted. The first part discusses the reasons for acceptance and the other part should contain any specific requirements that need to be carried out, along with the terms and conditions.
Like most formal letters, the credit acceptance letter is also concluded with a few courteous words from the sender.
Signing the Letter
Right below the statement, you simply mention, "Yours Faithfully," "Yours Truly," or "Regards," followed by your signature with name and designation.