When you approve the credit application of a client, the approval is followed by an official letter addressed to him. This letter informs the client about the approval and provides him with the necessary details.
It is a short and precise piece of document. The letter carries a professional tone and delivers only the relevant information to the client. Mentioned below are some guidelines for composing a letter to grant an official approval for credit.
Declare the Approval with Enthusiasm
The approval of credit is happy news for your client. Therefore, the right way to begin this letter is by congratulating the client and expressing the credit approval with some excitement.
Include Necessary Details about the Credit
Mention the exact figures related to the approved credit. Discuss the allowed limits, interest rates and other relevant data. In this way, you inform the client exactly how much credit has been approved for him and how much he is supposed to pay in return.
Mention Important Terms and Conditions
Make all relevant terms and conditions clear through this letter. Mention the billing date and discuss what your organization is authorised to do in case of non-payment.
End the letter Warmly
Close the letter with warm regards for your client. You may express your gratitude to him for doing business with you. Likewise, state your desire for a long business relationship. Overall, maintain your professional tone while winding up the letter.
Here are two samples to give you an idea about writing a credit approval letter.
Sample Letter -1
We are pleased to inform you that your application for credit has been approved. The allowed credit limit for you is $ 60,000/- with a monthly interest rate of 3.5% on the total bill. Billing will be done on the 15th of every month.
Kindly note that the bill must be cleared every six months. Failure to do so will result in double interest rate on the outstanding amount. The bank reserves the right to cancel your current credit and reject future credit requests in case of non-payment for a period of 24 months. Please have a look at the enclosed terms and conditions for more information.
Our customer care is available 24 hours in case you have any queries. Do let us know if you need further assistance.
Sample Letter -2
Congratulations on your credit approval. ABC Corporation grants you $12,000/- credit with 10% interest. The monthly billing is done after every 25 days. Kindly have a look at the enclosed brochure for our detailed terms and conditions.
Please contact us in case of any questions. ABC is pleased to serve you and looks forward to a long business relationship.
