In the following sentences, the word in italics is not very appropriate for formal correspondence. Choose a more suitable alternative from the list.

inform overdue request promptly sufficient

elapsed confidential acceptable competitive settle

1. Thank you for forwarding the documents so quickly.

2. We feel that enough time has passed for you to pay.

3. I am writing to ask for open account facilities.

4. We remind you that this information is highly secret.

5. Your quarterly settlement is three weeks late.

6. We are pleased to tell you that the credit facilities you asked for are fine.

7. Our prices are very tow.

Complete the following request for a reference with the correct prepositions.

Antonio Medina S.L.

C/Sagasta 1156 Barcelona 08317

18 May 19 —

The Credit Controller

British Suppliers PLC

Hoxteth House

Wrights Way

Glasgow G12 800

Dear Mr MacFee

We are writing (1) ______________you (2) ____________Mr. David Arnold,

the recommendation (3) _____________the accountant (4) ___________DL. Cromer Ltd. (5) Stames, Middlesex. He advised us to contact you as a referee, concerning credit facilities, which his company has asked us (6) _____________.

Could you confirm that the company settles (7) ___________due dates, and is sound enough to meet credits of (8) _______________to £5,000 in transactions.

We would be grateful (9) ______________a reply (10) _____________your earliest possible convenience

Yours sincerely

Use the words below to complete this letter from a referee.

information statements limit

customer

balances

credit-worthiness

confidence

due

British Suppliers plc

Hoxteth House, Wrights Way Glasgow G12 800

27 May 19 —

The Sales Manager

Antonio Media

S.L. C/Sagasta 1156

Barcelona 08317

Dear Mrs Gomez

I refer to your letter of May 18 concerning the (1) __________of D. L. Cromer Ltd.

The company has been a (2) ____________of ours for a number of years, and although their credit (3) ______________has not reached the level you mentioned, we have found that they always cleared their (4) __________on the

(5)___________________dates, settling them on quarterly (6)

We trust you will treat this (7) ______________the strictest (8) _________________

Yours sincerely

G. MacFee

Credit Controller

P. Gbmez (Mrs.)

Sales Manageress

Write the letter from Patricia Gomez to Mr. Arnold, informing him that the references favourable and offering him the credit facilities he requested

9. Credit and status enquiries

The main reason for buying on credit is for convenience. Basically it allows us to 'buy now, pay later'.

1. Credit enables a retailer to hold stocks and to pay for them out of the proceeds of later sales. This increases the working capital and thus helps to finance the business.

2. Credit enables the buying public to enjoy the use of goods before they have saved the money needed to buy them.

3. Credit avoids the inconvenience of separate payments each time a purchase is made.

The main reason for selling on credit is to increase profits. Credit sales not only attract new customers but also keep old customers, since people who run accounts tend to shop at the place where the account is kept, whereas cash cus­tomers are free to shop anywhere.

DISADVANTAGES OF CREDIT

There are a number of disadvantages in dealing on credit both for the supplier and for the customer:

1. It increases the cost of doing business since it involves extra work in keeping records and collecting payments.

2. It exposes the supplier to the risk of bad debts.

The buyer pays more for the goods since the supplier must raise prices to cover the higher costs.

REQUESTS FOR CREDIT

A buyer who makes regular purchases from the same supplier will usually wish to avoid the inconvenience of paying for each transaction separately, and will ask for 'open account’ terms under which purchases will be paid for monthly or quarterly or at some other agreed period. In other words the goods are to be supplied on credit.

Customer requests open-account terms (a)

Request

Dear

We have been well satisfied with your handling of our past orders and as our business is growing expect to place even larger orders with you in the future.

As our dealings have extended over a period of nearly 2 years, we should be glad if you would grant us open-account facilities with, say, quarterly settlements. This arrangement would save us the inconvenience of making separate payments on invoice.

Banker's and trade references can be provided on request. We hope to receive your favourable reply soon.

Yours sincerely

Reply

Dear

Thank you for your letter of 18 November requesting the transfer of your business from payment on invoice to open-account terms.

As our business relations with you over the past 2 years have been entirely satisfactory, we are quite willing to make the transfer, based on a 90-day settlement period. In your case it will not be necessary to supply references.

We are pleased that you have been satisfied with our past service and that expansion of your business is likely to lead to increased orders. You may rely upon our continued efforts to give you the same high standard of service as in the past.

Yours sincerely

Customer requests extension of credit

Cash flow problem

Dear

We regret you have had to remind us that we have not settled your account due for payment on 30 October.

We had intended to settle this account before now, but because of the present depressed state of business our own customers have not been meeting their obligations as promptly as usual. This has adversely affected our cash flow.

Investment income due in less than a month's time will enable us to clear your account by the end of next month. We should therefore be grateful if you would accept the enclosed cheque for £200 as a payment on account. The balance will be cleared as soon as possible.

Yours sincerely