Credit Reference Letter
A bank issues a credit letter for both the purchasing and the selling party. All the clauses mentioned in the contract should be agreed by both the parties involved. The Credit Reference Letter is basically a letter that a bank issues to the party that requires a loan. The document clearly mentions that if the party that has been granted the loan fails to pay, the referred link will be held responsible and will have to pay instead.
In the first paragraph of the Credit Reference Letter, the person taking responsibility should mention the details of his business and his account. He should also clearly mention the name of the person he is referring and for what purpose is the loan required.
In the concluding text, take the guarantee of the person you are referring and ensure the bank that the payments will be made in time.
Instructions
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Sample Credit Reference Letter
Greg Houston
Branch Manager
Laurel National Bank
August 13, 2012
To Whom It May Concern
I am Robert Francis and I own a consultant company by the name of Francis Services Limited. I have been a loyal customer of your bank for the past three years and my credit record with Laurel National Bank has been very nice.
I am pleased to know that your bank has been very supportive in offering credit to any new businesses in the past few years. One of my customers, Sarah Cole, is willing to start her own clothing line but she does not have enough capital. She requires a loan from your bank but has recently come to know that there is a reference required from a current account holder.
I am willing to take her guarantee for the new business she is starting and I give my reference to make sure the payments are made in time.
I am hopeful of a positive reply from your side.
Yours sincerely,
Robert Francis
Francis Services Limited -
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Template of Credit Reference Letter
[Recipients Name]
[Recipients Title]
[Company’s Name]
[Date]
To Whom It May Concern
I am writing this letter in reference to the credit query of ................ He has been a regular customer at my firm ............................. for the past few years. His business with us has always been pleasant and our company has never had any problem in handling the financial issues.
According to our company’s credit rating system, ................. has a very decent number and I am sure that he will be of minimal risk to you.
Yours sincerely,
[Senders Name]
[Senders Title]
[Company’s Name]
