KRETCHMER’S APPLIANCE STORE

1135 State Street

Chicago

Illinois 60688

3 February 19XX

Standard Electric Corporation

2120 Oak Terrace

Lake Bluff

Illinois 60044

Dear Sirs

Enclosed is our purchase order 121 for 6 four-slice toasters, model 18E.

We would like to place this order on open account according to your regular terms. Our store has been open for two months, and you may check our credit rating with Ms Peggy Sawyer, branch manager of the First Bank of Chicago, 1160 State Street, Chicago, Illinois 60688.

You may also check our credit standing with the following companies:

The Kenso Clock Company, 150 Ottawa, N.W., Grand Rapids, Michigan 49503.

National Kitchen Products Inc, 55 East Main Street, Round Lake Park, Illinois 60733

Please let us know your decision regarding our credit as well as an appropriate delivery date for our first order.

Sincerely yours

Bruce Kretchmer

CREDIT INQUIRIES

When checking a business credit standing, that is reputation for financial stability, a company may contact the references directly. The letter of credit inquiry should contain all known information about the applicant, and it should assure the reference that all information will remain confidential. The inclusion of a reply envelope is a wise courtesy.

STANDARD ELECTRIC CORPORATION

2120 Oak Terrace

Lake Bluff

Illinois 60044

7 February 19XX

Ms Peggy Sawyer

Branch Manager

The First Bank of Chicago

1160 State Street

Chicago Illinois 60688

Dear Ms Sawyer

Kretchmer’s Appliance Store, 1135 State Street, Chicago, has placed an order with us for $120 worth of merchandise and listed you as a credit reference.

We would appreciate your sending us information regarding Kretchmer’s credit rating. We would especially like to know how long the owner, Bruce Kretchmer, has had an account with you and whether or not any of his debts are past due. We will, of course, keep any information we receive in the strictest confidence.

A reply envelope is enclosed for your confidence.

Sincerely yours

STANDARD ELECTRIC CORPORATION

Milton Smedley

Encl

CREDIT RESPONSES

Companies that receive large numbers of credit inquiries often use their own form for responding. In this way, they can control the information given out, and, especially, limit the information to hard facts: amounts owed and presently due, maximum credit allowed, dates of account's opening and last sale, degree of promptness of payment, etc.

Because business reputation is at stake, opinions should be expressed discreetly, if at all. Particularly when a credit reference is unfavorable, it is advisable to state only objective facts in order to avoid a possible libel suit. Most companies, moreover, reiterate somewhere in the letter that they expect the information provided to remain confidential.