IV. Writing.

Ex 1.

Part I

H

THE JAMESON CONSTRUCTION CO

Harbor Road 6

Birmingham 6

6 July 19XX

Standard Electric Corporation

79 Prince Albert st

Birmingham B12 BDJ

Dear Sirs

Enclosed is our purchase order 383 for 5,000 aluminum fittings model 284 ES.

We would like to place a firm order on open account according to your regular terms. Our company has been open for three years, and you may check our credit rating with Mr Rank Granville, branch manager of the Bank of England, 1832 Park Lane, Birmingham, 38, 4 SU.

You may also check our credit standing with the following companies

Western Metal Company Ltd, Hull, S19 3 AF, Grand Rapids, Michigan 49503

Cornerstone Construction Products Ltd, 55 East main Street, Round Lake Park, Illinois 60733

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

Sincerely yours

David Jameson

Encl

ere is a credit application letter David Jameson, owner of the Jameson Construction Co, wrote to Standard Electric Corporation to place an order with them on open account.

Part II.

Write a credit inquiry letter to Mr R. Granville, branch manager of the Bank of England, 1832, Park Lane, Birmingham, 38. Consider the two following sample letters of credit inquiry. Do not forget to provide all known information about the applicant.

1.

Gentlemen

We have the name of your organization as a credit reference for

__________________

__________________

It will be appreciated if you will give us the benefit of your credit experience with this company, as well as any other comments concerning its management and general reputation, which would assist us in extending an appropriate line of credit.

The information you share with us will be held in strict confidence and will be used for credit purposes only. We will welcome an opportunity to reciprocate at any time.

Year of first sale _____________________________

Highest Credit Last 12 Months _____________________________

Amount Now Owing _____________________________

Amount Past Due _____________________________

Terms of Sale _____________________________

Promptness of Payment _____________________________

Special Comments _____________________________

Enclosed for your convenience is a self-addressed return envelope. Your early reply will be appreciated.

Cordially yours,

2. This is a short version of the above letter:

Gentlemen

Would you please submit the following credit information on the above named firm. We appreciate your cooperation and will gladly reciprocate any time.

Then list the information required from the model letter above.

While writing your credit inquiry letter select and list only the facts which might be important for you at this period of time.

Part III.

In the table, there are facts the Bank of England submitted about Mr David Jameson to Mr Carl Richards, Credit Department, Standard Electric Corporation, 79 Prince Albert street, Birmingham B21 BDJ.

previous occupation	Until June 19XX, Construction supervisor at Cornerstone Building Company
years with the BoE	18 years
previous credit standing	Accounts always in order, adequate balances to cover all checks drawn
current occupation	Since July 19XX, owner of Jameson Construction Co Ltd
current credit standing	Borrowed $10,000 Makes regular payments against the loan
special comments	Unaware of any further outstanding debts
date	20 July 19XX
address	The Bank of England, 1832 Park Lane, Birmingham 38, 4SU

On the basis of this information write a credit reference letter about Mr D. Jameson's credit- worthiness.

Part IV.

Since Mr Jameson's credit reference was favorable, a letter was sent granting him credit. A clerk used a word processor to write the letter. But the processor was not working well. The paragraphs came out in the wrong order. Correct the letter by putting the paragraphs in the right order.

1. Carl Richards

Credit Department

2. Dear Mr Jameson:

3. Standard Electric Corporation

4. July 28,19XX

5. We are happy to welcome you as an SEC credit customer, for your request for credit has been approved.

6. Mr David Jameson

The Jameson Construction Company

Harbor Road 6

Birmingham 6

7. On the third of each month, we will prepare a statement of the previous month's purchases. Your payment is due in full on the tenth. With each statement you will also receive a supply of order forms and return envelopes.

8. Sincerely yours,

9. We are delighted that SEC can be a part of your company's beginnings and look forward to serving you for many years to come.

10. Alrene Ryan, your personal SEC representative, will visit you some time next week. In addition to bringing you catalogs and samples, she will explain our special dealer options, such as advertising campaigns and rebate programs.

11. Your first order, for 5.000 aluminum fittings, will be ready for shipment on Monday, August 4.

Ex 2. Read the following credit-inquiry letter. If necessary, request additional facts about the company. Write a credit reference letter, providing favorable information about the applicant.

Dear Sir

We have received a large order for agricultural equipment from Caufer Tech Ltd, who have given us your name as a reference.

We would highly appreciate if you could let us have information about the financial standing of this company as soon as possible.

The information you share with us will be held in strict confidence.

Yours faithfully

Ex 3. Use the following unfavorable credit reference to write credit refusing letter. Phrase your letter so that you do not lose potential customer.

Gentlemen

In response to your inquiry concerning the financial standing of Stuart Supply Company Ltd. we have gathered the following information from our sources.

The Stuart Supply Co Ltd. has recently taken its accounts to a new bank and changed the name under which it trades. We have been unable to obtain reliable information about the company's activities since the beginning of the last financial year.

We believe that the management of the Stuart Supply Co Ltd. are aiming for high volume turnover and small profit margins, they could be considered to be undercapitalized.

We regret that we have been unable to find more detailed information and would advise you to act with caution.

This is, of course, in strict confidence.

Yours truly

Ex 4. Read the following credit refusing letter

Dear Mr Almond

We greatly appreciate the order you gave our Mr Robbins. You will find that we have reason to be proud of our quality products.

We want to work with you and help you get established, but from the information we have been able to gather, you appear to be undercapitalized, which would make it difficult for you to meet payments on our terms.

One temporary solution we might suggest is for you to find a person or a firm that would guarantee your open account with us. We have found this arrangement to work well with other customers until they become established. This could take care of your immediate needs. Later, we can work together on other arrangements.

Please let us hear from you soon.

Sincerely

1. Write a letter providing the name and information about the company that will guarantee your open account.

2. On the basis of the above information write a credit granting letter.