Refusal of Credit Facilities

Dear M.

Thank you for your letter of 3 December in which you enquired about credit facilities.

We appreciate that you have placed a number of orders with us in the past, and are sure that you can supply the necessary references to support you request. However, as you probably realize, our products are sold at extremely competitive prices. This allows us only small profit margins and prevents us offering any of our customers credit facilities.

We are very sorry that we cannot help you in this case and hope you understand our reasons.

Once again, thank you for writing, and we look forward to hearing from your soon.

Assignments

I. Suggest the Ukrainian equivalents of the phrases below:

we appreciate that you have placed a number of orders with us; competitive prices; profit margins; this prevents us offering any of our customers credit facilities.

II. Answer the questions:

1. How does the writer assure the addressee that his firm’s reputation has nothing to do with the rejection?

2. What reason does the writer give for refusing credit facilities?

3. Is it only in the addressee’s case that credit has been refused?

4. How does the writer encourage further correspondence?

Credit Denied

A letter denying a request for credit preserves goodwill by maintaining a positive tone. It should be frank but tact­ful. Do not begin with the explicit refusal of credit, but suggest means to continue the customer's business.

Dear Ms. P.:

We are grateful for the promptness with which you supplied the financial statement we requested upon receiving your order (Invoice A-1678) for six Databank cash registers. Your determination to expand a small business in the current economic climate is commendable.

Our first step in considering applications for credit is to examine the applicant's bottom line for profitability after twenty-four consecutive months of business. As your venture is but six months old, we regret that we cannot at this time extend a line of credit.

We will be glad to do business with you on a cash basis for now, and will review your credit standing at the appropriate time. If your capitalization changes, please let us know. The Databank is the best register on the market for small business needs, and we promise you the best prices and services. We wish you luck with your enterprise and hope that we can be of future service to you.

Assignments

I. Suggest the Ukrainian equivalents of the phrases below:

we are grateful for; upon receiving your order; consecutive months; to do business on a cash basis; we can be of future service to you; profitability; appropriate time; commendable; capitalization; promptness; venture.

II. Suggest the English equivalents of the phrases below:

заявка на отримання кредиту; касовий журнал; кредитоспроможність; фінансовий звіт за визначений період; продовжувати кредитну лінію.

III. Study the use of italicized words in different phrases, suggest their Ukrainian equivalents:

~ credit ~

to exceed the ~ ; to open a ~ ; to prolong a ~ ; to reject a ~ .

IV. Write a letter denying a request for credit of your own according to the plan:

1. Review circumstances of credit request.

2. Express thanks for customer's interest.

3. State company policy on granting credit.

4. Express regret at customer's current financial status.

5. Suggest alternatives to credit buying.

6. Invite further correspondence.