Enquiry Agent's reply

Questions

1. What credit does the buyer want?

2. Why would the supplier want to know if the firm traded under another name?

3. How does he ask if the firm owed money before?

4. Who told Mr Marlow to contact Mr Spade?

5. Which expressions are used to mean late payments; legal action to close the business?

CREDIT INVESTIGATIONS Ltd. 1 Bird Street. London E1 6TM   Telephone: [phone] Fox: 071 623 1965 Reg.London3121561   Mr. P. Mariow 26 April 20— P. Mariow & Co. Ltd. 31 Goodge Street London EC49 4EE   Dear Mr. Mariow,   We have completed our investigation into Falcon Retailers Ltd, who you enquired about in your letter dated 9 April 19___. The firm is a private limited company with a registered capital of £1,000 and consists of two partners, David and Peter Lorre, It has an annual turnover of £50,000 and has been trading since October 1971. As far as we know neither the company nor its directors have ever been subject to bankruptcy proceedings, but the firm was involved in a court case to recover an outstanding debt on the 17 January 19___. The action was brought by L.D.M. Ltd. and concerned the recovery of £2,150, which Falcon eventually paid. But we ought to point out that L.D.M. broke a delivery contract, which accounted for the delayed payment. From our general enquiries we gather that some of Falcon's suppliers have had to send them second and third reminders before outstanding balances were cleared, but this does not suggest dishonesty so much as a tendency to overbuy which means the company needs time to sell before they can clear their accounts. We hope this information proves useful, and if you have any further enquiries, please contact us. You will find our account for £175.00 enclosed. Yours sincerely,   S. Spade Credit Investigations Ltd. Encl. Account

Questions

1. Which figure represents Falcon's yearly sales?

2. Have legal proceedings ever been taken against Falcon?

3. Have Falcon ever gone out of business?

4. How many people run that company?

5. Do Falcon pay their debts on due dates?

6. What does Mr. Spade think Falcon's problem is?

7. Which words in the letter correspond to the following: research; asked; yearly income; regain money owed help up?

Points to remember

1. Credit is only given if the supplier knows his customer well, has a reference from a bank or business associate of his customer, or his customer has an excellent reputation.

2. When asking for credit, say why you want it and convince your supplier that you will pay on due dates. State how long you have been dealing with the company. Offer references to support you.

3. When agreeing to credit, your letter can be short and simple.

4. When refusing credit, you must give reasons and convince your customer that the refusal does not discriminate against him in particular. Using generalizations can help, e.g. we usually/as a rule/normally/do not offer credit facilities.

5. When taking up a reference, tell the firm who you are and who you are enquiring about. Tell them the type of credit involved, e.g. bill of exchange, monthly settlements, and let them know how much the credit is for. Assure them that the information will be in confidence and that you will reciprocate should the occasion arise.

6. When writing a favorable reference, let the firm know you are pleased to offer a reference, and tell them why you think the credit should be offered, e.g. that you have been trading with the firm for a long time and have allowed them credit. Tell the firm the information is given in confidence and without responsibility.

7. When writing an unfavorable reply, if you are not sure what you want to say, simply write that you cannot give information about any of your customers. Or, alternatively, be brief, stating only the facts as they concern you, but do not give opinions.

Words to remember

credit credit facilities/terms credit-worthy credit rating to ask for credit to grant credit	a due date to settle as account settlement against monthly statements to clear a balance to default a bad debt court action bankruptcy proceedings
a reference a referee to offer/take up references to treat something in confidence confidential a reputation reputable reciprocate	a bill of exchange a banker's draft open account facilities document against acceptance profit margins turnover

Дата добавления: 2014-12-29