Cash Management & Credt Control Question

Geordie_Online
Geordie_Online Registered Posts: 13 Regular contributor ⭐ ? ⭐
Hello.

Can somebody please help me.

What is the correct way to communicate a refusal of credit to a customer?

Comments

  • blobbyh
    blobbyh Registered Posts: 2,415
    Most of the ones I've seen are short, very formal letters which usually contain the following;

    1) The greeting (calm before the storm!) e.g. Thank you for applying for...
    2) The rejection e.g. Unfortunately, we are unable to offer you credit at this time...
    3) The succinct reason e.g. We use credit scoring to assess etc...
    4) Someone to refer to if they believe they have been unfairly rejected e.g. Experian where they can get a copy of their credit report.

    If it's for a company, also make sure to address it to the FD, MD or owner as ultra sensitive communications of this kind should not be opened by the receptionist!
  • reddwarf
    reddwarf Registered Posts: 528
    Always offer to trade on cash terms and must offer to review again later when more info (financials in case of new company) or some history of good trading on cash terms.


    You can add contact details of relevant person in the company e.g. sale manager.

    You don't want to turn away any 'potential' customers!!! They may be a fledgling Microsoft!
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