Reference Letters

Reference Letters :

The sale of goods on credit is a common practice in business today. Business cannot always be conducted without granting credit and to grant credit to unsound firms means inviting difficulties. So a trader should take great care in granting this facility. The trader must make inquiries regarding the standing, reputation, character and financial capacity of the party to which credit is to be extended. An order for goods from an unknown customer will usually contain trade references i.e. the names of firms to whom inquiries about his standing may be addressed. In such a case the seller will not execute the order until he had taken up the references and obtained satisfactory reports about the standing may be addressed. In such a case the seller will not execute the order until he had taken up the references and customer. If, however, the order does not give any references, the prospective buyer is politely requested to furnish them. The letter containing this request should make it clear that it is a custom of the firm to get such references from every new customer before goods are supplied to him on credit. Following up the references given by a customer and getting the necessary information about his standing must take sometime. In the case of an urgent order, therefore, the seller may send the customer a proform invoice and request him to send a remittance of the amount of the invoice and on receipt of the amount execute the order.

The letters asking references should state :

  1. The circumstances in which the letter is written

  2. The exact information desired

  3. The assurance to treat the information given as strictly confidential

  4. To extend the co-operation and readiness to return the favour if demanded

Traders are entitled by law to give freely to one another information regarding the financial standing of persons asking for credit. If in reply to inquiries they give their honest opinion, even though it may be unfavourable, the firm about whom the opinion is given cannot sue them for defamation. However, no trader is supposed to say that the person about whom an inquiry is made is unworthy of credit, unless the trader has some grounds for believing it to be true and unless he makes the statement without any feeling of ill-will or malice against the person concerned.

While drafting replies to status inquiries the following facts should be taken into consideration :

  1. The replies to such inquires should be as brief as may be consistent with answering them clearly and adequately.

  2. The information given should be based on personal knowledge and experience of the correspondent and not on hearsay.

  3. Unless the inquirer wants to know the amount upto which it would be safe to grant credit, this need not be specified.

  4. If unfavourable opinion is to be expressed it should be expressed with tact and caution.

  5. Whether the opinion expressed is favourable or unfavourable, the correspondent should make it clear that he accepts no responsibility for it and the matter should be treated as private and confident.

  6. It is advisable to avoid mentioning in the reply the name of the firm about whom adverse opinion is given. The firm may be referred to in the reply as The firm you mention or The firm abut whom you have inquired.

  7. Care should be taken to be thoroughly objective in giving opinion. Personal relations of any type should not colour the opinion of the correspondent. Objective facts must be set out with clarity and yet diplomatically. Where it is found that giving one’s opinion might damage the business prospects of the firm under reference, the party to whom reference is made has every right to refuse to give any opinion.

  1. Letter Asking for Bank Reference
  2. Letter Asking for Names of References
  3. Letter with Proforma Invoice
  4. Sample Letters to Creditors
  5. Letter Taking Up A Reference - 1
  6. Letter Taking Up A Reference - 2
  7. Favourable Reference Letter - 1
  8. Favourable Reference Letter - 2
  9. Non-Committal Reply to The Letter Asking for Reference
  10. Unfavourable Reply to The Letter Asking for Reference - 1
  11. Unfavourable Reply to The Letter Asking for Reference - 2
  12. Letter Refusing Credit
  13. Letter of Inquiry through A Banker
  14. Reply to The Letter of Inquiry through A Banker

Reference Letters

Letter Asking A Donation
Letter Asking A Favor
Letter Asking for More Details
Letter Asking for Donations
Letter Denying of Dealership
Letter for Change of Address
Letter for Distributorship
Letter for Employment
Letter for Hotel Reservation
Letter for Letter of Credit
Letter for Line of Credit
Letter for Product Launch
Letter for Promotion
Letter for Retirement Congrats
Letter for Scholarship
Letter for Settlement of Bill
Letter for Tender
Letter for Testimonial
Letter of Agreement
Letter of Assurance
Letter of Credit
Letter of Enquiry
Letter of Order
Letter of Persuasion
Letter of Sympathy
Letter Offering Discount
Letter Related to Advertisement
Letter Related to Despatch
Letter Related to Training
Letter to A Foreign Buyer
Letter to Pen-Friend
Letter to Police
Letter with Order
Letter with Quotation
Letter Writing
Letters about Company Shares
Letters by Clubs and Societies
Letters by Landlords & Tenants
Letters for Appointment of Dealers
Letters for Business Relations
Letters for Buying and Selling
Letters for Credit & Collection
Letters for Foreign Travel
Letters for Lease & Tenancy
Letters for Loan & Borrowing
Letters for Transfer & Assignment
Letters for Insurance
Letters Noting Discrepancy
Letters of Condolence & Sorrow
Letters of Regret
Letters Regarding Maintenance
Letters Regarding Payment
Letters Related to Employees
Letters to Local Corporation
Letters to Postal Authorities
Letters to The Editor
Letters Used in Real Estate
Letters With Postal Department
Letters With Railways Authorities

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