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Oxford handbook of commercial correspondence
 

Oxford handbook of commercial correspondence

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teach you how to write a business letter

teach you how to write a business letter

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    Oxford handbook of commercial correspondence Oxford handbook of commercial correspondence Document Transcript

    • lntroduction pdqe 5 n 1 Letters,faxes,and emails 7 o 2 = Contentand style 2s f+ 3 Enquiries 38 o4 Replies quotations and 47 5 5 t+6 Orders Payment 6r (n 767 Complaints adjustments and gs8 Credit n79 Banking 8710 Agentsand agencies 16811 Transportation shipping hnd 18st2 Insurance 22113 Miscellaneous correspondence 241L4 Memosand reports 2so15 Personnelappointments 266 Answer key z8z Glossary 288 Index 297
    • Lililumeryomtdcnce, 5 whether it is by letter, fax, or companiesinvolved in transportation, Lrurumtrntr|ls abyaspect of the world of commerce including shipping. umniill hmmmess-refl ectson the competenceand It ;gtchrotuumalism the personwho has written of Forthe purposesofthis book,we have chosen blockedstyleof correspondence the r+ druuffi" - company he or sheworks for. Clear, ,rffiffiuurecorrespondencean important part is with no punctuation andhave used some representativestyles of presentation and o - Mmuummmog pmumwufte an effcient business,and can gmdrelations. Unclear or confusing layout.Youmayfind otherways of doing things which are perfectly acceptable, and o- ummpoumdence causemany problems, can individual companiesmay have their own c iluoudl llpedlo misunderstandings, delays, iluutr rmrrnll humfurcss, poor relations between and preferred style for correspondence. most The n uudlmilffiaals, departments, and companies.. important thing is to be clear and consistent in whateveryou choose do. to r+ IO lUMe,writing skills - whaf is written and tumm mqpressed- should be as much a part ff Unit r introduces the three main kinds of commercialcorrespondence Ietters, - faxes, o rMia hrumlmess ilMro[lnmm[xcs. education as accountancyor and emails.The characteristicfeatures of each are illustrated with examples,and guidance is 5 ffi,rw @ord Handbook of Commercial given on when eachkind shouldbe used.Unit z, rlmrw4mldezceis intended for peoplewho again fully illustrated with examples,deals lmdifrmwrite commercial correspondence in with the important areasof content and style. ltnrm$rllmh of their work, and for students as part Eachunit thereafterfollows the same pattern: unrhrouwless commercewho planto make a and - An introduction to the topics coveredin the itmmmrmthebusiness world.It aims to provide unit, and an explanation of key terminology | .*dfjjiirnl inwriting commercial hslp and the functions of the organizationslikely itmmspondence all kinds, including letters, of to be involved.iem@s, ffi...........![ails, memos, social reports, - An analysisof the objectives aimforwhen to fl@mqpordence, application letters and and you are writing, with, where appropriate, cwm, eglains how to write clearly and Iffi Iists of alternativephrases, sentences, ortffimmely,and demonstrateshowit is possible paragraphswhich you can substitute intltu" pftite without seeming timid, direct yet hm different situations.mmif murde- conciserather than abrupt, and firm - Examplecorrespondence transactions, and futrmumlfi inflexible. togetherwith comprehension questions Ltrsms earlier editions of this book will of focusingon content,vocabularystyle,andmthrse $,at,while it retains the coreelements the rolesofthe correspondents.m"prewfimrs editions,this third edition has been - At the end of the unit, a summary of key,wsmnsed updated to reflect changesand and information inPoints to remembertoroumenolnrnents in commercial correspondence, refresh your memory. m pmmhcular wider use of email in the the At the back of the book you wiII flnd:mmrmmessworld. - An answer key to the comprehension ]trhe irook dealswith the structure, questions.Mwtrlhtion, content, and style of all kinds of - A new glossaryof usefulbusiness andmmespondence.Itcoversvarious types of commercial vocabulary to help youfimmmctioninduding enquiries,quotations,nnrdrftryi$, consolidateand build your knowledge. paJrynents, credit, complaints, and - A revisedand extendedindex to help you&drurorsfurxents, and provides background access information throughout the bookrdfnumilEtion examplesof commercial and quickly and easily.immesErondence the main types of fromumrmmmercial organization,for example banks, The accompanying Workbook providesfllsru]m-d$rce companies,agencies, and supplementary practice material.
    • tr The correspondenceand documents used o reflect authentic transactions and supply 3! information abolrt commercial practice in the I UK. The Handbook also helps you to gain a E better understanding of the sometimes confusing roles of different commercial organizations, e.g.merchant banks and commercial banks, Lloyds and other insurance companies,The Baltic Exchangeand the Shipping Conference. TheOxford Handbook of Commercial Correspondence been designedto provide has a comprehensiveguide and referenceto the essentialwriting skills neededinthe commercial world. Above all, we hope that this bookwill enable youto improve yourwriting skills so that you can approach any business writing task with increasedconfidence.
    • Ietters l- 8 8 l avour t Senderaddress s o F+ 8 Date F+ 8 ro 1o l nsi deaddress Attenti onl i ne Sal utati on oI 1r 1r Bodyofthe letter Compl i mentary ose cl t rn -iii 11 12 Si gnature LA Y OU T 2 -+r q, 12 12 14 Letterhead References Perpro x o 14 14 Jobti tl e E ncl osures t tn 14 LA Y our3 14 P ri vate and confi denti al 9.| 14 Subj ect tl e ti 5 14 14 Copi es AD D R E S S IN C E N V E LOP E S o- Faxes t6 tN TR oD U cl oN o 1 6 P repari ngfortransmi ssi on 5 J t6 srY LE -17 gJ r8 I. 19 - Emai l s UT 20 IN TR OD U C TION zo Advantages 20 D i sadvantages 20 E mai land otherformsof correspondence 20 E mai l addresses 21 LA Y OU T 2 1 H eader nformati on i 21 Message text 2 1 5i gnature 22 STY LE 22 E mai l abbrevi ati ons 23 24 25 z6 27 Pointsto remembet z8 Letters z8 Faxes z8 E mai l s
    • LettersJI Surname known l! T AY OU T1 > E If you knowthe name of the person you o! The letter opposite is from a private individual are writing to, write it asthe first line of the c G in Denmarkto a companyinthe UK.It shows address. Include eitherthe personsinitial/s or 6 o the basicfeaturesof a simplebusiness letter. his or her first given name,e.g. LE.Smith or Mr xe Mr lohn Smith,Nor Mr Smith. G Counrr sy rrrrE s usedin addresses as are o Senders address follows:I In correspondence that doesnot have a - Mr (pronounced /rmrsta/) is the usual rErrERHEAD,the sendersaddress placed is in courtesy title for a man. The unabbreviated the top right-hand cornerofthe page.It is also form Mister should not be used. acceptable,butless common,to placeit inthe - Mrs (pronounced/rmrsrz/, no unabbreviated top left-hand corner.Punctuation is rarely used form) is usedfor amarriedwoman. in addresses thesedays. - Miss(pronounced/l mrs/,not an The sLocrrp srylr is the most widely abbreviation) is usedfor an unmarried used,i.e.eachline startsdirectlybelow the one woman. above. - Ms (pronounced /mrzl or /mas/, no In contrast with practice in some other unabbreviated form) is used for both countries,in the UK it is not usual to write the married and unmarriedwomen.It is sendersname before his or her address. advisableto use this form of addresswhen you are unsure whetherthe woman you are Date vwiting to is married or not, or do not know which title she prefers. The date is written directly below the senders - Messrs (pronouncedltmesaz/, abbreviation address, separatedfrom it by a space. the In for FrenchMessfeurs, which is never used)is caseof correspondence with a Ietterhead used occasionallyfor two or more men, e.g. >seepagerz, it is usually written on the right- Messrs lones and B.L Parker,but more P. hand sideofthe page. commonly forms part of the name of a The month in the date should not be written company,e.g.MessrsCollier,Clark & Co.ltis in figures asthis can be confusing; for example rather old-fashioned. r.j.03 meansn March zoo3in British English, Other courtesytitles indude academic or where the sequenceis day-month-year, but medical titles, e.g.Doctor (Dr ),Profe ssor(Prof.); 3 Novemberzoo3 in American English,where military title s,e.g.Captain (Capt.), Major (Maj.), the sequenceis month-day-year. (CoI.),General ); and aristocratic (Gen Colonel It is acceptableto write the date with or titles,e.g. Dame,Lord, Sir, Lady.Sirmeansthat without the abbreviations and -nd,e.g. -th the addressee a knight, and is always is z4th October z4 October,and transpose or to followed by afirst name,e.g.Sir lohnBrown, the date and the month,e.g.Odober z4or never Sirl. Brown or SirBrown.It should not be z4October.These matters of personal are confusedwith the saruran roN Dear Sir. preference,but whatever you chooseyou Esq., abbreviationfor Esquire, seldom used is should be consistent throughout your now. It can only be used instead of Mr, and is correspondence. placedafter the name.Do not useEsq. and Mr at the sametlme,e.g.Bruce Esq.,NorMr Hill Insideaddress BruceHIIEsq. All these courtesy titles, exceptEsq., also are Therwsrpn ADDREss writtenbelowthe is usedin salutations>seepage10. sendersaddressand on the left-hand side of the page.
    • !tffiaddrcss oIts @ 6May2o- I IalEdrcss @ Compuvisionltd WarwickHouse WarwickStreet Forest HiIl Iondon SE23 lIF 1 .UK 5 :E t line @ FortheattentionoftheSalesManagerlruirn @ DearSirorMadamfffdthe letter @ Pleasewould you sendme detailsof your DVDvideo systems. I am particular$interested the Omega in range. @ Yoursfaithfully ,UcloseItrrue @ B. Ka"a,eW (Ms)B.Kaasen I
    • Note that a full stop is often used at the end Facoltddi Medicina G E ofthe abbreviation ifit takes the form ofthe ViaGentile$z o! first few letters of the word , e.g.Prof. (Professor) , t-7otoo Bari c |! but is not necessaryif it takes the form ofthe Lehrschule Bodenkunde u filr o first and last letter of the word, e.g.Dr (Doctor). x Amalienstrasse,E However,somepeoplepreferto write, e.g.Mr., p-8oooo Mdnchen4o 6 o Mrs.,with a full stop.Again, whatever you choose do,you shouldbe consistent to It is simplest to follow the aboveorder and o throughout your correspondence. style,though variations are possible:for example the name of the county, e.g. Jobtitle known Lancashire,may, known, be included onthe if If you do not know the name of the person you line below the name of the town or city; the are writing to, but know their job title, you can postcode may be written on a separate line; the usethat, e.g.The Sales Manager,The Finance name of the tovun,as well asthe country,tnay Diredor, in the inside address. be in capitalletters >seealsopage14. Departmentknown Alternatively, you can addressyour letter to a Attentionline particular department of the company,e.g.Ihe SaIe Department, TheAccountsDepartment. s An alternative to including the recipients >seeletter on page43. name or job title in the addressis to use an ArrENTroN LrNx >seeletteronpage9. Company known Finally,if youknow nothing aboutthe company and do not knowwhich person or Salutation department your letter should go to, you can Dear Siropensa letter written to a man whose simply addressthe letter to the company itself, name you do not know. e.g.CompuvisionLtd,MessrsCoIIier, Clark & Co. Dear Sirs usedto addressa company.(In is Orderof insideaddress American English a letter to a company usually Afterthe name of the personand / or company openswith Gentlemen.) receiving the letter, the recommended order DearMadam is usedto address woman, a and style of addresses the UK is as follows: in whether single or married, who;e name you do - Name of houseor building notknow. - Number of building and name of street, Dear Siror Madam (orDear Sir/ Madaml is road,avenue,etc. usedto address personwhen you do not a - Name of torrr-n city and postcode or know their name or sex.Noticethat Ms Kaasen - Name of country in the letter on page9 usesthis form, i.e.she doesnot assumethat the salesmanagerof IndustrialHouse CompuvisionLtd is a man > seealsopage36. 34-4t CraigRoad Whenyou knowthe name of the personyou Bolton are writingto,but do not knowthemwell, the at4 8rr salutation takes the form of Dear followedby a UK courtesytitle andthe personssurname.Initials In other Europeancountries,the number of the or first names are not used with courtesy titles, building may be placed after the name of the Mr e.g.Dear Smith,xor DearMr I. Smith or street.It is also common to substitute the name DearMr lohn Smith.Business associateswho of the country with an initial beforethe district you knowwell can be addressed using just codenumber. Thesetwo examples are from their first nam e,e.g. ar lohn. De Italy and Germany (Deufs chland) respectively.
    • A comma afterthe salutation is optional, i.e. 5ignature IDDearMr Smith,or Dear Mr Smifh. (ln American oEnglish a colon is usually used after the Always type yolu narne and, if relevant,your -5 job title, below your handwritten signature. iisalutation,e.g DearMr Smith:, . Gentlemen:). x o Thisis known asthe srcwarunr srocx. Even -h t though you may think your handwriting is =Bodyof the letter CL o easyto read,letterssuchas a,e,o,r, and v can 3The blocked style is the one most often used for easilybeconfused. t =the body ofthe letter. It is usual to leave a line It is,to some extent, a matter of choicespace betweenparagraphs. whether you sign with your initial/s, e.g.D.Jenkins,or your full given name, e.g.David lenkins,and whether you includeComplimentary close your courtesy title in your signature block asIf the letterbeginsDear Sir,Dear Sirs, in the letter on page 9. But if you includeDearMadam,or Dear Siror Madam,lhe neither your given name nor your title, yourcoMplrME NTARycLo s E shouldbe Yours correspondentwill not be able to identify yourfaithfully. sex and may give you the wrongtitle when he If the letter begins with a personal name, or shereplies. e.g. ear Mr lames,DearMrs Robinson, D orDear Ms Jasmin,it should b e Yourssincerely. Aletterto someoneyouknowwell may closewiththe more informalBest wishes. Note that Americans tend to closeeven formal letters with Yourstruly orTrulyyours,which is unusual inthe UKin commercial correspondence. Avoid closing with old-fashioned phrases, e.g.Weremain yoursfaithfully, Re ctfully speyours. A comma afterthe complimentary closeis optional, i.e.Yours faithfully, or Yoursfaithfuny. The complimentary closeis usuallyplaced on the left, aligned under the rest of the letter.TITLE STA TU S C O M PIIM EN T AR Y C LO SEMr married or umarried male YourssincerelvMrs married female YourssincerelyMiss unmarriedfemale YourssincerelyMs married or unmarried female YourssincerelySir male - name not known faithtully YoursMadam female -name not knornm YoursfaithfullySir/Madam when unsure whetheryou Yoursfaithfully are addressingmale orfemalemedical/academic/military these titles do not changewhether Yourssincerelye.g.DrlProfessor/General addressinga male or female
    • J4 Boardof DirectorsG L AY OU T 2 >E The name of the chairman (inthe USA,theoT Opposite is the companys reply to the letter president),who runs the concern,may be given,tra! from the prospective customer in Denmark. as well as the names of the directors,who6o It shows some more features of atypical decide the overall policy of the company.xe6 businessletter. The managing director (inthe USA,and increasingly in the UK,termed the chielo executiveoficer or cto),who takes an active.9 Letterhead role inthe day-to-day running of the company, The printed letterhead of a company gives a may be mentioned if he or she is not the same great deal of information about it. personasthe chairman.In the UK,the chairman runs the Board of Directors while the Typeof company Chief ExecutiveOfficer runs the company. The abbreviationltd after a companys name indicatesthat it has r,rru p r,rasr rrry. This rrr Address means that the individuals who own the In addition to the addressof the office from company, or part of it, i.e.the shareholders,are which the letter is being sent,the letterhead only responsible for their holding (i.e.the may also give the addressof the head office or capital they have contributed) if the company registeredoffice,if different, andthe addresses of goesbankrupt. In other words, it indicates to any branchesor other officesthe company ornms. people giving the company credit that in Telephoneand fax numbers will also be bankruptrythey can only be paidback from included and, if relevant, email andwebsite what the company owns, and not from the addresseg. cable(telegram)addressmay also A personalfunds of its shareholders. be included. It is important to remember that The abbreviationprc (nuat tc LIMrrED although the majority of companies are cotte.a.Nv) usedto showthat a companys is connected to the Internet, there are many sharescan be bought and sold by the public, countries where fax and cable are still unlike the sharesof private limitedliability important ways of transmitting information companies.In the USAthe term r.nrc. or, where banks are concerned,money. (tNco ne onarro) is used. Registered number CompuvisionLtd This usually appears in small print, sometimes SPWholesalersplc with the country or city in which the company Hartley-Mason Inc. is registered. The abbreviationaar.a (*) co.indicates that IntheUK,thevar (varur aooro rax) a company is a partnership between two or number may alsobe given >see,for example, more people. (And is usually vwitten as an the letter on page56. ampersand(&) in Englishcompany names.)If the company is a family concern,Son/ s,Br os References (Brothers),orDaughter/s may be added. Partnerships mayhave limited liability or Rrrrnrrvcrsareoftenquotedto indicate unlimited liability. what the letter refers to (Yourref.) and the cor- respondence refer to when replying (Ourref.). to F.Lynch & Co.Ltd References may either appearin figures,e.g. R.Hughes &Son 66t/t7,where 66t may ref.er the number of to Ifneitherltd nor & Co.appearafter a the letter and rTto the number of the companysname,then it may be a sorr department,or in letters,e.g.oslu.n,as inthe TRADxR, a personwho owns and runs a i.e. letter on page r3,where os standsfor Donald businesson their own. Sampson,the writer, and rrar for his assistant, MaryRalmor.
    • o Ltdo Comp$vision WarwickHouse WarwickStreet o ;i x o Forest Hill London !J sE23lJF = cl o Telephone +44(o)zo8566r86r 3 !, Facsimile+44(o)zo8566r385 EmaiI staff@comvis.co. k u www.comvis.co.u k Your ref. 6 May 20- @ Your ref. DS/MR Date llMay2O- !, Ms B.Kaasen o Bredgade51 tr N DK1260 CopenhagenK DENMARK DearMsKaasen, Thank you for your enquiry. I encloseour catdogue and price-list for DVD video equipment . Youwill findfull detailsof the Omegarangeonpages 31-35. Pleasecontact us if you have any fudher questions or would like to place an order. We lookforward to hearing from you. Yourssincerely, M*/ Ra/rwr0 p.p.Donald Sampson@ SalesManagero Enc. Chairman JohnFranksoee. lr.sc. N.lgnot R.Lichens Dircctors 5.B.Allen B.A 13
    • Note that the Your Ref. the letter on in t! 5ubjeetitle t E page 13is a date,as Ms Kaasendid not give oll any referencein her original letter. A suslrcr rrrr,r atthe beginning aletter, of E t! directly after the salutation,providesa further 6 o x Perpro reference, savesintroducing subject the the ine first paragraph, immediately drawsattention 6 p.p. Theabbreviation sometimes appears in to the topicof the letter,and allowsthe writer o .U signature blocks.Itmeansnza eno,i.e.for and to referto it throughout. on behalfof, andis usedby administratorsor It is not necessary beginthe subject to title personal assistants when signingletterson (w with Re. ith regard t o),e.g. e. Appli cationfo r R : behalfof their managers. thepostof webdesigner.When sending email messages may evenbe confusing this as.n.E is shortforreply>see page48. Job title Whensending letteror emailon behalfof a eopie: your company, is a goodideato includeyour it job title in the signature block, especially if When copiesare sent to people other than the your recipienthasnot dealtwith you before. named recipient, c.c. (carao.rrrcoev) is added, usually at the end of a letter, before the name/s ofthe recipienti s ofthe copres. Enclosures Sometimes you will not want the named If thereareany documents enclosedwith a recipient to know that other people have letter,althoughthesemay bementioned the in receivedcopies.In thls case, c. c. (nt tNo B. bodyof the letter,it is alsocommonto write :ARBoN copv), and the name/s of the Enc. EncI. or belowthe signature block. there If recipient/s, are added on the copiesthemselves, area numberof documents, thesecanbe though not, of course, the top copy. on listed,e.g.: Theseabbreviations are used in email, and Enc. mean exactlythe same thing >seepage 21. B|IIof lading$ copies) Insurance certificate(t copy) A D D R E S S IN G E N V E TOP E S Certificate origin A ropy) of (t B|IIof exchange copy) Envelopeaddresses written in a similar are wayto inside addresses>seepages8-ro. But in the caseof letters within or for the UK,the LAYOUT > 3 name of the town and the country are written Thefinal letterin this sectionshowssome in capital letters,and the postcodeis usually further features a business of letter. written on a Iine by itself. Mr G.Penter Private and confidential 49 MemorialRoad OR P IN G?ON Thisphrasemay bewritten at the headof a Kent Ietterand,moreimportant,on the envelope, in an6 9ua cases wherethe letteris intendedto be read MessrsWBrownlow Co. & oniy by the addressee. 6oo GrandStreet There manyvariations this phrase, are of LON D ON e.g. onfide C ntial,Strictlyconfi.dential,but little w tN guz difference meaning. in UK14
    • |D Ltd Comp*rvis{wm WarWick Warwick House Street o I s x Hill Forest o u London cl sE231JF = A o Telephone+44(o)zo8566r86r 3 !, +44(o)zo8566r385 Facsimile k Emailslaff@comvis.co.u www.comvis.co.uk ref. Your Your DS/MR ref. Date 21September 20- Ms B.Kaasen !J Bredgade51 o DK1260 -tr rl, CopenhagenK DENMARKl! Private and o Private and confidential confidential DearMsKaasen@ Subjecttitle I o Non-palrment of inv oice 322| L7 It appearsfrom our recordsthat, despite severalreminders,the above invoice remains unpaid. Unlessthe account is clearedwithin 14daysfrom the date of this letter,we shalltake legal action. Yourssincerely tt - 00lUld, JAJ4,W)ru Donald Sampson Sales Manager@ Copies @ c.c. MessrsPoole& Jackson Solicitors Ltd, C hai r m an J ohn F r ank soer Directots S B Allen M-sc- N.lgnot R.LichensB.A 15
    • 14 Faxes|!E I N T R OD U C T ION Preparinfor transmission g ott trt! Theword/ax comesfromlfacsimile, which Checkthat you have the correct fax number.6o meansan exactcopyor reproduction.Iike Checkthat the paperon which your message isxe email,thewordfax canbeusedas a noun, printed or written is suitable.If it is too big,too5 e.g.IsentaJaxor asa verb,e.g.We willfax small,or in poor condition,photocopytheo you when we have the inJormation. message paperthat can be accepted the on byo A fax message usefui when speedis is fax machine.Beforeusing the machine,check important and the recipientdoesnot have that you know how to dial, cancel, cleara paper email.It is especiallyusefulfordocuments jam, and send. containing diagramsor drawings.Likeemail, When you senda fax it is a goodidea to use a a fax can be sent quickly to many different fax transmissioncoverform. This will help to recipientsat the sametime. However,again ensurethat the fax reaches i.ntended its like email,fax is an open system,i.e. recipient safely.Most companiesusetheir own correspondence easilybe accessed can by headedfax transmissionform, but you can outsiders, it shouldnot be usedfor so easilycreateone for yourself,e.g.: confidential information. BRrrrsHcnvsrtt Ltd. When sendinghandwritten fax messages, Glazier House use a dark colourand make your writing large GreenLane and clear. Derby As faxesare copiesof documents, they D E 1 7R T cannot be usedwhen the originals are required. example, originalrrrr or For FA X ME S S A GE an LADTNG givesrrrlr to goods(i.e. you would To: own the goodsif you had the bill in your From: possession), would not be valid if it were a and Fax no.: faxed copy. Subject: Faxes havebeencourttested, and they tend Date: to be accepted legal cases, in along with letters, Page/s: as evidencein certain areasof international trade.However,an email containing similar S TY TE information might not be considered valid under certain circumstances. Generally, faxesare similar to lettersin style, Difierent fax machines offer a wide range Ievelof formality, andthe use of conventions. of facilities,including repeatdialling if the However,a fax may be shorterand the receivers machine is engaged; fax a Ianguagemore direct,likean email,asthere transmissionreport which givesdetailsof the is a time element in the costof sendingthem. time, date,sender, receiver, number of pages, As with email messages, bewareof using too duration, and result; a verification mark at the informal a tone with customersor suppliers foot ofthe pageto confirm the fax was sent; you do not know well. and a number memory for frequently used numbers.Check manual of your fax the machine to find out what functions it can perform. It is alsopossible senda fax from a to computer.r6
    • Adviceof damaged F HeadOffce consignment oF. Lynch & Eo. Ltd NessonHouse 5 NewellStreet This isfrom Lynch fax f x Birmingham & Cqwho received a |D _9 833EL damaged coHsrcNMENT !, = andweretold bytheir o Telephone: @lzt 46 657r +44 o Fax:+44(o)21 supplier,5atex5.p.A., to 3 458592 t, pcrane@lynch.co.u Email: k returnit >seepage ro6. = I www.lynch.comFnx messuqeTo D.Causio, SatexS.p.A.From L.Crane tnFaxno. (06)481,5473 x !lSubject Replacement damagedorder no.7UI8 of 3 ! .DDate 19October20- IF xPagels 1This is an urgent request for a consignment to replacethe aboveorder,which was damaged during delivery. We informed you about this in ourletter of 15September.Pleaseairfreight the following items:Cat.No. O_uantrtyR30 50R20 70N26 100The damaged consignment will be retumed when we receivethereplacement.?eh/ Aa*t"oPeterCraneChiefBuyer 17
    • J4 frrponr to o E lmportr/r cnqulry o! E Thisisafaxfrom G I BritishCrystal their to o x rc errs,5.A.lmporters,.E in SaudiArabia >see 5 o correspondence on C T AZ IER H O U SE.GR EEN tAN E .D ER BY D El l R T pagesrT4-176. TET E P H o N +4 4 @ ) 1 3 3 z4 5 7 9 0 . F A c s r M r L E : 4 ( o ) r 3 3 2 5 r 9 7 7 E: +43 This isquite fax Email: oliverh@crysta l.com. www.britishcrystal.com formalin styleasthe companies just have started theirbusiness FAX MESSAGE relationship.Notice how Mr Oliversells To S.A.Importers From H.Oliver,MarketingManajer the producttothe x importers. rSeealso Faxno. (966)1 34981.E Subject FrenchEmpire designsg BdtishCrystalsfaxed q enquirytoUniversal Date 16August 2G- Page/s 5,includingthisone E |! Airwaysandthe letter xIlI replyonpagesD4-r95. Thank you for your enquiry about our FrenchEmpire range of drinking glasses.There is a revival ofinterest in this period, so we are not surprised that these products have becomepopular with your customers. I am sendingwiththisfaxpp.l-4 of our cataloguewith CIFRiyadhprices, as you saidyouwould lil<ean immediate previewof this range.Iwou-ld appreciateyour comments on the designswith regard to yow market. I look forward to hearing from you. H. Olin?l H.Oliver(Mr) Marketing Managerr8
    • Faxaccompanying o an order o I Fax &&$Ewm&mrru With this fax,an ii x importeris sending o ffixpXm**ffi&Awx3 an officialorderand !, = specifications the for r ffimxvnpffiryruW d r i l l sh e r e q u i r e s. e H o 3 ll s a y s t h a t a c o N Fr R M ED L E T T Eo F c n eo r r w i l l R BlockD.5urulere Road lndustrial Telephone(+44) t 4836o829/4/ 5 be openedoncehe has Ogb a. lk eja. Lagos (44) t 4837 Facsimile oot t h e s u p p l i e r s C OM M ER C IAL INV O I C E . To JohnMalcovitch,ChiefEngineer Noticethat the fax is United Drilling Inc.Managing Director From TosinOmosade, copied his companys to accountant, alsothe and Fax 273-890-0740 chiefengineer. ltt x t Topic Drilling Heads 3 E. oNo.ofpages1-5 f x c.c. KwameAdeole(Accountant) Vidal Lamont (ChiefEngineer) Pages2-4 ofthis fax are specificationsfor the exploration drilling heads that we discussed your visit herein October. on Couldyou pleasesupply theseheadsas soonas possible? , I am alsosendingour official OrderNo NI f2O-1046.Ishall make arrangementsto open a confirmed letter of credit with the Nigerian International Bank as soon asyou have sent me your invoice and details of shipment. I look forward to hearing from you. Tosin0runsa"dp TosinOmosade (Mr) Managing Director r9
    • EmailsJI read by authorizedusers),which both work G IN T R OD U C T ION E along similar lines,make email more secure. o! Email (shortf.oreleetronic mcil) is a means of tr G sendingmessages between computers. E mai l and other formr of 5 o To send and receiveemail you need access to x correrpondencee the Internet. An Internet ServiceProvider (rs n) will provide you with connection software, Thereare severalareasofbusiness o which is often free. This will give you Internet communication where more traditional forms o access, storagefor incoming mail, and the of correspondence still the most suitable. are capqbilityto read your messages. Finally,you For example,personaland sensitive need email software, generally already correspondence such as messages of installed in modern computers,so that you can congratulation, condolence,or complaint are write, send,receive, and readmessages. usually best done by letter. Confirmation of contracts,memos which are confldential and Ad v a n ta g e r must be signedto acknowledgereceipt,and any correspondence which may be neededfor Thereare numerous advantages email.It is to legal or insurancepurposesshould not personaland easyto use.It can be usedboth normally be sent by email. You might find a job within and between companies,and is an on the Internet,but most companieswould effective wayto communicate quickly and still expectyour applicationto consistof a easily with people all over the world. It is completed form with a covering letter. especiallyuseful for short messages and for everydaycorrespondence, setting up a e.g. E mai l addreres meeting, passing on information, and making or replying to a request. Iook like this: Typical email addresses Youcan pick upyour email messages, dfranks@intchem.co.no even when you are travelling, via a laptop or corneyg@kingsway.ac.uk palmtop. With compatiblesystems,youcan access text and graphicdocuments,and The first part of the email address usuallythe is spreadsheets. whatever you sendor And surname and initial of the person you are receivecan be quickly and easily filed. contacting, or the name if itjs a department, or a shortenedversion ofit. The secondpart, which appearsimmediately after the @(at),is D i s a d v a n ta g e s the name of the rsn or organization, again or The disadvantagesof email include technical an abbreviation of it. Usually,the last part of problemswhich may result inthe unexpected the address includesthe domain name suffixes non-deliveryof messages, attachments or referring to the type of organization(e.g..co arriving in unreadable form. A non-technical forcompany,.ac (academic) a university) for disadvantageis that, paradoxically,the ease and to the country from which the message with which messages be sent resultsin can was sent (e.g..nofor Norway,.ukfor the Iarge amounts of junk and unnecessary UnitedKingdom). communication, which waste time. Other examples of domain name suffixes As with faxes,a major drawback is the lack referring to types of organizationinclude: of privacy and security. Do not use email to .biz business communicate confidential information. It is .gov governmentofice sometimessaidthat an email message like is .org non-profit-makingorganization a postcard - anyone can read what you have (e.9. charity) a written. However, digital signing and .pro profession(e.g.medicine,Iaw) encryption (coding data, so that it can only be
    • If the name of a country in its main language Attachments o differssignificantlyfrom its name in English, Iconsof anyarrAcHMENrs will appearhere. ID this is reflectedin its domain name suffx, e.g: The amount of header information, and the orderin which it appears, will vary according ii .de Deutschland(Germany) x o .es Espafia(Spain) to the software being used,so do not worry if !, .za ZuidAfrika (SouthAfrica) you the messages sendand receive not lookdo I cl exactlylike the one in the example. o 3 q, L A YOU T = 1 , rr , 1,1t Belowis a typical email message. Thepresentationof the text in an email is usually lessformal than in a letter.In this i1.,tLlIt I lr)llll lllIll exampleMs Kaasenhas usedthe formal Theheadergivesessentialinformation about DearSir/ Madam,but shecould simplyhave the message.In addition to the basicdetails headedher m essage the attention of the For shown in the sampie,it may include: SalesManager.Ratherthan ending with Yoursfaithfully, usesthe lessformal she c.c. I lookforwardto hearing Jromyou. This standsfor carboncopies, which means much the sameas it doeson a letter r.seepage14. Hereyou insert the email ,r r - r t11i , addresses anyoneyou want to sendcopies of This is like the signatureblock in a letter, of the message to. although it usually includesmore details,e.g. b.c.c. the senders companyor private address, and This standsfor blind carboncopies, which, as telephoneand fax numbers.Youcan program in a letter,you shoulduseif you do not want your email softwareto add your signature the main recipientto know who has received automaticaliyto the end of outgoing copres>seePage 14. messages. I H e a der or m at ion inf Subject:, I Message text f) D e a rSi r/ M a d a m Pleasewouldyou sendme details yourquadsoundsystems, of advertised the in Apriledition SoundMonthly? of I am particularly interested the Omegarange. in I look fonvardto hearingfrom you.r I Si g nat urbloc k e O Beatrix Kaasen(Ms) Bredgade 51 D K 12 6 0 Copenhagen K Tel/ Fax:(+45)741583 Email:kaasenb@intertel.net,dk
    • 14 |! ST Y tE Errr.r | .rbbrcvr.rti orrr i E o! Email is a relatively recent development, and TLAs(three-letteracronyms) tr t! becauseit is perceived as a quick and informal In orderto keep email messages short,people 5 o means of communication, people are often sometimesuse abbreviationsfor common xe unclear about the style and conventions they just expressions, asthey do in text messaging. should use in businesssituations. Theseare known asTLAs (three-letter o As a general rule, although email acronyms), although someof them are more o correspondencemay tend towards informality, than three letters long.Here is a list of some it shouldfollowthe sameprinciples as any of the most commonlyused TLAs: other form of businesscorrespondence. AFAIK asfaraslknow Here are somebasictips about style: BFN byefornow - In general,email messages follow the style Brw bytheway and conventionsusedin letters or faxes.For coB closeofbusiness example,youcanuse salutationssuch as FYr for your information DearMr Pintoor DearTom,and row inotherwords complimentary closes such as Yours sincerely NRN no reply necessary or Bestwishes. However,if you knowthe oroH ontheotherhand recipient well, or if you are exchanging a seriesof messages with one person,you may UseTLAs with great care,and onlywhen dispensewith the salutation and you have estabiished a friendly, informal complimentary close. relationshipwith your correspondent. They - Do not confusepersonalmessages with should not be be usedin letters and faxes. businessmessages.In businessmessage, a Emoticons the same rules of writing apply as for a Emoticons(a combination of the words Ietter: write clearly,carefuIly,and emotion andicon),alsoknow as smileys,are courteously;consideraudience, purpose, often usedin informal email correspondence. clarity,consistency, conciseness, tone. and They expressemotions which may not be - Usecorrectgrammar,spelling, evident from the words alone,e.g.: capitalization, and punctuation, as you a smile would in any other form of correspondence. -) afrown - Do not write words in capital letters in an -( ;) aw i nk email message. This can be seenasthe equivalent ofshouting andtherefore have a On the whole. it is better not to usethem in negative effect.If you want to stressa word, businessmessages, they may be considered as put asteriskson eachside of 1t, e.g.*urgent*. unprofessional, especially ifyou do not know - Keepyour email messages short and to the the recipient weII or are not sure that he or she point. Peopleoften receive a Iot of emails at will understandthem. work, so conciseness especiallyimportant. is - In general,limit yourself to one topic per message. This helps to keepthe message brief and makesit easierfor the recipient to answer,f,le, and retrieve it later. - Checkyour email message mistakes for beforeyou sendit, just as you would check a letter or a fax message.
    • A s k in g o r a n f |D estimate o E q *"i E elX Hereis an exampleof f rnd _l 10 x a n e m a i la s k i n g f o r an G EsrtMATE refit a to !, Fib Edil Yiew Lnsert Fgrmat Actions 3 store.There threeare o. o attachments. Notice 3 ro... I PeterLane -I that the email is q u ite !, short.lt is acceptable, as here, omit the to salutation and the Refitof HaltonRoad store complimentary close whenthe sender nd a recipient havebeenin touch with eachother lll previously. x g, Planof oremises list Architectsdrawinos 3 E o or,Vithreference our phoneconversation morning, wouldlikeone of your to this I 3 g. SE4 3TN,to givean estimaterepresentatives visitour storeat 443 HaltonRoad,London, tofor a completerefit.Pleasecouldyou contact to arrange appointment? me anAs I mentioned the phone,it is essential on thatwork is completed before end of theFebruary20-, and this would be statedin the contract.I attachthe plansand specifications.JeanLandmpn (Ms)Assistant K. Bellon, to Managing DirectorSuperbuys Superbuy Ltd, HouseWolverton Road,LondonSW167DNTel.:020 8327 1651Fax: 020 8327 1935j.landman@superbuys.com 2t
    • L tulakf,ng t! E arrangementsfor IUT an estimate tr t! PeterLanereplies to o x Jea nLa nd mancop yi ng , the message the to o surveyor,John Pelham. o Noticethat this message fulf ls the requirements for correspondence dealin g with an e nq uir y , i.e.the replyis sentas Refitof HaltonRoad store soonas possible and covers points the me ntio ne d th e in Dear Ms Landman.E enquiry.The styleis E quite info rmalb ut still John Pelham, available inspect premises Our surveyor, is to the and discussyourexact o politea nd b usine sslik e. Couldyou pleasecontactJohnon jpelham@wemshop.com,on his mobile requirements. or-g ll E The lettersRE: appear (7129289541),to arrangea convenient time for him to visitthe store? G beforethe subjecttitle xllt in th e h ea de r Fromyourattached specifications, I estimate work couldbe completed the withinthe time information. is Th you give,and we wouldbe willingto sign a contract this effect. to indicates that PeterLane hasselected thereply Peter Lane opt io n.The rigin al o message appears below Director, WembleyShopfittersLtd his reply. WycombeRoad,Wembley, Middlesex HAg 6DA Teleohone: 8903 2323 020 Fax:020 8903 2349 Email:plane@wemshop.com - Original message- From: Jean Landman To: PeterLane Subject: Refitof HaltonRoad store Dr :a l L 4 t N-ir r e ; Vi ih r e le r e n ce [u c) L np l rorre conve;tserti otrtfns rr]i )r rri !t, l w rrrri r.l l i he one oi t,o,rr r r ir r csd r - ltd lve s[DVr sr to uIsturc;rt 214-i l -l al i l rr ]-i i i :i i i t..,rrrj otr i ,.L-4i i i l !,Lc,gi v*arI i:sIir ila ilu tr ,r ra i cOiltp le te rel i t P teerse cti Lrl t.i rLr i .r,rrtl l tcli Ttc i o al r[i ]i l 1{Jrl r-r.r1;p0i i l l ri tcrtt? yl (i ,/!r .; r ir L iiL i.;le d o r r iir e 6.rl ronc.i i r:; esserrl i ;tl l l r.rt w oi i l r j s i r()l ri l l c.ted bei ore i i re erLl trl I I r i.ll L t.lt,, ,,4 - . a t r cl L iliSl;,V Oftl Ctt.: r,t:.atl rlld ti l ,.j (l {.}ll /trr-L ll rt i I e r lta cfr llr e r p llr r r s :r n r .ispeci fi caLronl ; Je .a n L a il( ii ir :1ii ( l/ s) A..i.r.rrri l..r l{ llollrrn iri-rr.,lrr.r lrrr:nlnr 124
    • Askingfor o informatIon o A c o m p a n y a se m a i l e d h f rArial t h e i r l o c a l c H A M B ERF o x o c o M M ER c E o a s kf o r t -6l q = someinformationabout cl ID their prospective 3 D rs r R rB U T o R s , S ato c. In ll In this reply,the answers g i v e nb y t h e c h a m b e r o f commerce havebeen RE: Sato lnc inserted the relevant at p o i n t si n t h e o r i g i n a l message.They areDearMr Rubain preceded the> by ltt symbol. x> Pleasefind answersto your queriesbelow. q, 3How longhasthe company beenin business? llll:lii E. o> The companyhas tradedfor 24yearsunderits current name. o 3 E.How manyshowrooms does it have?> lt has a chainof 30 showrooms throughout country. theWhat is its turnovereveryyear?> lts registeredturnover yearwas $410million. thisWill its products compete with mine?> lt specializes foreign in cars- yourswillbe unique yourcountry. toHow is it regarded Japan? in> lt has an excellentreputation.I hooethisinformation useful. isKyokoMamura(Ms)Assistantto TradelnformationOfficerSakuragiBldg,Minami Aoyama, Minato-ku, Tokyo109Tel:(+61;3 45076851Fax:(+31;3 45078890Email:mamurak@tcha.com.jp 25
    • L lijrl i*:l rilltg{:11 ill Ol g;O+C-i S |! E ijr i cL{,tFtfqJbqaU o!t tr Mr Cliffo f Home m ak er s ,! is a furnitu re o x ma nu facturea nd re sup plie s Hug hes s Mr Actions Hetp o shopwith a wide range c, of g oo ds. th is In examp le, Hug hes Mr wantstwo new products ON A P P R OV A T . Cat. Nos KT3 and KT14on approval.E Eo Ord e rN o 8 1 4 6 3gCLEG DearMr Cliffxut A lot of customershavebeenaskingaboutyourbookcase and coffeetableassembly kits (abovecat. nos).We would liketo test the marketand have6 sets of each kit on approval beforeplacinga firm order.I can supplytrade references necessary. if I attacha provisional order(No.81463)in anticipation youragreement. of Thereis no hurry, so you can sendthesewithyournextdelivery Swansea. to Manythanks RobertHughes R. Hughes& Son Ltd Tel:0179258441 Fax:01792 59472 E m a i l r.h u g h e s @ h uson.com : Wh y d oe sMr Hughes What doesMr Wh a t s o r t o f o r d e r , r l s t h i sa n u r g e n t want the goodson Hughes hink m ight t hasbeensent,and request? approval? be required get to how hasit beensent? goodson approval?z6
    • Reply request to o *--ltrlx for goodson o :rrse n o ;n # -lX +@ i A 0 m e i lo p t ia r s Q . approval ii x - l ro -Ql B r Ull= = = = = = o !J Fite Lnsert Fgrmat fools Actions Help f EI o 3 !lDearMr Hughes mThankyou for yourenquiryaboutour assembly kits.Wedbe pleased sendyou 6 of each to x 0, They shouldbe with you by noon on Monday.on approval. 3 g oTheres needto supplyreferences. provisional no The order(81463)you sentis sufficient, o :tbut pleasereturnany unsoldkits in two months. c.Let us knowif we can be of anyfurtherhelp.Richard CliffDirector,Homemakers Ltd54-59 Riverside. CardiffCF1 1JWDirectline:+44 (0)2920 49723Fax.+44 (0)29 20 49937Email: rcliff@homemakers.com1 DoesMrCliffagree 2 Whatsortof 3 W h atshoul dMr 4 What phrase does rO to sendthe goodson are references H u g hes w i thany do Mr Cliff useto offer lD approval? required? unsold kits? more helo? o a 27
    • Points remember toJ4t! Letters E ma ilsE ot Many of thesepoints applyto faxesand emails 1 Email is very fast and effective,but there are trt! aswell. areaswhere it is preferable useletters,e.g. toa)x 1 The layout and presentationofyour letter personal, confldential, legal ore are important asthey givethe recipientthe rortcqnnnr]cnnpo flrst impressionof your companys 2 Email addresses usually givethe name of theo efficiency. personor department,then the @(at) 2 Write both the senders and the recipients symbol,followed bythe name of the address asmuch detaii aspossible in and in company or institution, and flnally the the correctorder. domain names, which indicatethe type of organizationand the country from which 3 Make sureyou usethe recipients correct the message was sent. title in the address and salutation.If in doubt asto whether a woman is singleor married, 3 Thelanguageof emailscan be quite useMs. informal, but if you do not know the recipientwell, it is better to keepto the usual 4 Do not write the month of the datein writing conventions. can becomemore You f.gures. informal asyou establish a working 5 Choose correctsalutationand the relationship. complimentaryclose: 4 It is possible use specialabbreviations, to e.g. DearSir/ Madam with Yoursfaithfully tres and emoticons, do not confuseyour but DearMr / Ms Smith with Yours sincerely recipientby using abbreviations or she he 6 Make sureyour references correct. are may not know or understand. 7 Make sureyour signatureblocktells your readerwhat he or sheneedsto know about you. Faxes 1 Faxis an open system,soit shouldnot be usedfor confldentialcorrespondence. 2 Write clearlywhen sendinghandwritten messages, 3 Faxes copies, are and cannotbe usedwhen original documentsare required. 4 Prepareyour transmissioncarefullybefore you sendit. 5 In general, languageof faxesis much like the that of letters,although faxescan be briefer and more direct,likeemail messages.z8
    • 3o3o L ENGTH Toolong n g31 Tooshort31 T h eri ght l ength =32 o R D E R N D S E qU E N C E A rr+3232 U n cl earsequence sequence C l e ar o3333 PL AN N IN G paragraph First ;533 Middleparagraphs l+3334 Finalparagraph ST YLE A N D LA N C U A C E SJ34 Si m pl i ci ty =3435 Courtesy l d i omsand col l oqui alanguage l CL36 CL AR ITY UI36 A b b revi ati ons i ni ti al s and t+36 N u m bers P re posi ti ons q36 I3636 ACC U R A C Y Sp el l i ng o36 T i tl es, names,and addresses36 References37 Prices, measurements, etc.37 E n cl osures attachments and37 Pointsto remember
    • o tE NG T H DearMrArrand! tr All correspondence should be long enough to |! Thank you very much for your enquiry of 5 November which we c explain exactlywhat the senderneedsto say q, receivedtoday.We often receiveenquiriesfrom large storesand and the receiverneedsto know. You must c always welcome them, particularly at this time of the year when o decidehow much information you put in theI we knowthat you will be buying in stockfor Christmas. Ietter:you may give too much *see the letter on this page,in which caseyour letter will be We have enclosedour winter catalogue and are sure you will be too long, or too little seethe letter on page3r, extremely impressedby our wide range of watches.Youwill see in which caseit will be too short.Your style and that they include rangesfor men, women, and children,with prices the kind oflanguage you use can also affect that should suit all your customers,from watches costing only a the length. few pounds to those in the luxury bracketpriced at several hundred pounds.But whatever price bracketyou are interestedin,2 The following three letters are written by different peoplein reply to the same enquiry we guaranteeall our productsfortwo years. from a Mr Arrand about their companvs Enclosed you wiII alsofind our price list giving full details of prices products. to London (incluslveof cost,insurance,and freight) and explaining our discounts, which we think you will find very generous and l . ) ( - ) l i i j l f. which we hope you will take full advantage of. Thereare a number of things wrong with this We are always availabie to offer you further information about letter. Though it tries to advertisethe products, our productsand can promise you personalattention whenever and the company itself, it is too wordy. Thereis you require it. This serviceis given to all our customersthroughout no needto explain that storesare buying in the world, and as you probably know we deal with countries from stockfor Christmas- Mr Arrand is aware of the FarEastto Europeand Latin America,This fact alone bearsout this. Ratherthan drawing attention to certain our reputation,which has been establishedfor more than a items he might be interestedin, the letter only hundred years and has made our motto Time for everyone- explains what he can alreadysee, that there is familiarworldwide. a wide selectionof watches in the catalogue Once again, may we thank you for your enquiry and say that we coveringthe full range of market prices.In look forward to hearing from you in the near future? addition,the writer goeson unnecessarily to explain which countriesthe company sellsto, Yours sincerely to give its history, and to quote its rather unimpressivemotto.3o
    • 6-ac s hor t o f DearSir olhere are a number of problems with this : Thank you foryour enquiry. We have a wide selectionof watches !,-etter: which we are sure you will like. We will be sending a catalogue I c 5I It shouldhavebegunDearMr Arrand and soon. endedfours sincerelyasthewriterknew Mr :s. o Yoursfaithfully Arrands name from his letter of enquiry.2 Neitherthe datenorthe referencenumber ofthe enquiry are quoted.3 Ideally, catalogue a shouldbe enclosed with a replyto an enquiryabout a companys productsor indication of a websiteif the companyhasone. 24 When a catalogueis sent,attention should be drawn to items which might be of particular interestto the enquirer.New productsshould alsobe pointed out.5 A pricelist shouldbe includedif pricesare not given in the catalogue.Any discounts shouldbe quotedand,if possible, delivery dates.T he r ight lengt h Dear Mr ArrandHereis a more suitableletter.It is neither tooshort nor too long. It provides all the relevant Thank you for your enquiry of 5 November.information Mr Arrand might need,and draws We encloseour winter catalogue,and a price list giving details ofhis attentionto somespeciflc productswhich CIFlondon prices,discounts,and deliverydates.may be of interestto him.. Seepage33for the planforthis letter. Though you will seewe offer a wide selectionof watches,may we draw your attention to pp.23-28,andpp. 31-36, where there are styleswe think might suit the market you describe? page 25you On will flnd our latest designsin pendant watches,which are already sellingwell. All our products are fully guaranteed,and backedby our worldwide reputation. If you need any further information, pleasecontact us.We look forward to hearing from you soon. Yourssincerely 31
    • g o RDE R A ND S Eq U EN C E DearSir / Madam!t c As well as containing the right amount of G We are interested in your security systems We would like to know tr information,yourletter shouldalsomake all o more about the prices and discounts you offer. the necessary points in a logicalsequence, C o with eachidea or piece of information linking A businessassociate ours,DMS (Wholesalers) mentioned of Ltd,I up with the previous one in a pattern that can your name to us and showedus a catalogue. They were impressed be followed. Do not make a statement, switch with the security system you installed for them, so we are writing then referbackto the point to other subjects, to you about it. Do you give guaranteeswith the installations ? you made a few sentences paragraphs or In your cataloguewe saw the Secure15which looks asthough it before,asinthe example. might suit our purposes. DMShad the Secure installed,but aswe 18 mentioned, they are wholesalers,while we are a chain of stores.We2 U r , 1411*t0qr J F 1 (g s q 1 would like somethingthat can preventrobberyand shoplifting,so the Secure might suit us. 15 This Ietter is difficult to understandbecause there is no clearsequence logicalorder. or How long would it take to install a system that would serveall departments?Couldyou sendan inspector adviser seeus soon? or to If you can offer competitive prices and guaranteeswe would put your system in all our outlets, but initiallywe would only install the system in our main branch. We would like to make a decision on this soon,so we would appreciatean early reply. Yoursfaithfully e let r ! ef lut . r r cr, DearMrJarry Hereis a better versionof the sameletter.in which the ideas and information are in a We are a chain of retail storesand are looking for an efficient logicalorder. securir system. Youwere recommended us by ow associates, to DMS (Wholesalers) Ltd,for whom you recently installed the Secure 18alarm system. We need a system which would give us comprehensiveprotection against robbery and shoplifting throughout all departments, and the Secure featuredin your current catalogue 15 would appearto suit us.However,it would be helpful if one of your representatives could visit us sothat we can discussdetails of the availablesystems. Initially we would test the system we selectin our main branch, and, ifit proves satisfactory install it throughout our other branches.Our choicewould, of course,be influenced by a competitive quotation and full guaranteesfor maintenance and serVIce. Please reply assoonaspossibleaswe would like to make a decision withinthe next few months. Yourssincerely,2
    • arP tAN N I N G l Mi dd[e B aragnapefrs 0 = oThe way to make sure you include the right The main part of your letter will concernthe = !,amount of information,and inthe right order, points that needto be made,answersyou wish = CLis by planning.Ask yourselfwhat the purpose to give,or questions you want to ask.As thisof the letter is,and what response you would dependson the type of letter that you are 6-Iike to receive.Note down everything you want writing, thesetopicswill be dealtwith in laterto include beforeyou start writing, then read units.ln the middle paragraphs, planning isyour notes to checkthat you have included all most important to make sureyour points arethe necessaryinformation, that it is relevant, made clearly, fuily, and in a logicalsequence.and that you have put it in the right order.Here,for example,is the plan for the letter on Ffi mnIparagraphpage31. At the end of your letter, if it is a reply and you 2 rtpara. Acknowledgeenquiry znd para. Enclosecatalogue, price list have not done so at the beginning, you should thank your correspondent writing. If for 3rdpara. Draw attentiontowatches suitable Arrand,and latest appropriate, encourage further enquiriesor Jor designs correspondence, mentioning that you look forward to hearingfrom him or her soon.You 4th para. Mention guarantees and reputation may want to restate,briefly, one or two of the most important points you made in the main 5th para. EncourageJurther contact part of your letter.Here are someexamplesof final paragraphs.Firct ragna6"rh Xra - Onceagain thank youfor writing to us,PleaseThe opening sentence paragraphis or contactus if you would Iikeanyfurtherimportant asit setsthe tone of the letter and information.Tosummarize: pricesare aIIcreates flrst impression. a Generallyspeaking, quotedcrc Yokohama, deliverywouldbesixyou would thank your correspondentfor their weeks from receiptof order,and paymentIetter (if replying to an enquiry),if necessary shouldbe madeby bank draft I lookforwardintroduce yourself and your company,state the to hearingfromyou soon. - Ihope I havecovered the questions aII yousubjectofthe letter,and setout its purpose.Here aretwo examplesof openingparagraphs. asked,but pleasecontactme if thereare any- Thankyouforyour enquirydated8IuIy in other detailsyou require. you would like to If whichyou askedus about our rangeof placean order,may I suggest that you do so cosmetics. you probablyknowfrom our As beforethe end of this month sothat it can be advertising,we appealto awide agegroup met in good timefor the start of the summer the teenage marketthrough to more season?hopeto hearfromyou in the near I Jrom mature women,and our productsare retailed future. in leadingstores throughoutthe world. - Weare confidentthat you havemadethe- Thankyoufor your letterof tg August,whichI right choiceas this line is a leadingseller.If received today.Wecan certainly supplyyou thereis any adviceorfurther informationyou you with the industrialJloorcoverings asked need, would be happyto supplyit,and look we you about.Enclosed willfind a catalogue forward to hearingfrom you. illustrating ourwide rangeof products currentlyusedinfactoriesand ofices throughoutthe world 33
    • g S TYLE AND L ANG UAG E DearSir / Madam! tr t! Sinnplic it y I begto acknowledge receiptofyour letter ofthe 15thinst. in E o connection with our not clearing our account,which was Commercialcorrespondence en sulTersoft tr outstandingas ofthe end ofJune. o from an old-fashioned, pompousstyleoft, Englishwhich complicates messagethe and Please acceptour profuseapologies. were unabie to settle We givesreadersthe feeling that they are reading this matter due to the sudden demise of Mr Noel, our Accountant, something written in an unfamiliar language. and as a result were unaware of those accountswhich were to be In this letter, all the writer is trying to do is cleared.We now, however,have managed to trace all our explain why he delayedpaying his account commitments and take pleasurein enclosing our remittance but, because ofthe style,it is too long and is for L2,12O,which trust will rectify matters. we2 difficult to understand. We hopethat this unforeseenincident did not in any way inconvenience you,nor leadyou to believethat our not clearing our balanceonthe due datewas an intention on our part to delav payment. We remain, yours, etc . . . Hereis a simpler versionof the letter.Mr Aldine will be satisfiedwith it because tells it DearMrAldine him - simpiy and clearly - what he wants to I am replying to your letter of 15July askingus to clearour June know.First,his customeruseshis name. balance. Second, has apologized. he Third,Mr Aldine knows his was not the only account that was I apologize not settling the accountsooner, dueto the for but not paidwhen due,and knows why. Finally,he unfortunate death of Mr Noel,our Accountant, there have been has his cheque delaysin settling all of our outstanding balances. Please fnd enclosed chequeforL2,720, acceptour apoiogies our and for any inconvenience. Yourssincerely Lot/ r l r DearMrRohn Your style should not, however,be so simple that it becomes rude.Hereis an exampleof a Ive already written to you concerning your debt of f 1,994. This letter that is too short and simple. should have been clearedthree months ago.You seemunwilling to co-operatein paying us Well sueyou if you do not clear your debt within the next ten days. Yours. etc.34
    • a.t-i the versionof the sameletter,notice the o Is$istic devices that areusedto make it more DearMr Rohn .D =:olite: complexsentences, joined by I refer to our previous letter sent on 10 Octoberin which you !l:onjunctions,rather than short sentences were askedto clearthe balanceof f 1,994 your account, = on which c e.g.... the balanceof [,t,t94, which hasbeen has been outstanding sinceJuly.As there has been no reply,Icutstanding... ratherthan ...yourdebtof :s. |D shall have to consider handing over the matter to our solicitors.tt,99q.This shouldhavebeencleared..);the.use of full ratherthan abbreviatedforms However, I am reluctant to do this and am offering a further ten days for the account to be settled.,e g.I shall haveto consider. . rather than .WeIIsue...);andthe useof passive forms Yourssincerelvand indirect language that avoids soundingaggressive (e.g....for the accountto besettled. ..ratherthan .. . if you do not cle your debt...). ar 2 d i o n n sand c olloquia l l a n g u a g eIt is important to try to get the right tonein your letter.This meansthat, generallyspeaking, you should aim for a neutral tone,avoidingpompouslanguageon the one handand language which is too informal orcolloquial on the other. Youmay setthe wrong tone byusingthe wrong vocabulary or idioms, or usingshort forms inappropriately. Here are a fewexamples,together with a preferredalternative. I NAPPR O P R I A T E PREF ERRED F O RM AL T ERNAT IVE youveprobably you areprobably guessed aware youll getyour the loanwillbe repaid moneyback pricesareat rock pricesareverylow bottom priceshavegone priceshaveincreased throughthe roof rapldlyOn the whole, it is better to avoid usingcolloquial language or slang.Apart from thedanger of being misunderstoodif yourcorrespondents first languageis not Engiish,he or she may think you are being too familiar. 35
    • -c the expression both flguresand words,e.g. in C L A R IT Y fto, 57 o (ten thousand 5.9 five hundred and! E Yourcorrespondent must be ableto seventy-fivepounds,ninetypence). |E tr understand what you have written. Confusion q, in correspondence often arisesthrough a lack tr o PrepositionsrJ ofthought and care,andthere are a number of ways in which this can happen. Specialcareshouldbe taken when using prepositions. Thereis a big differencebetween Abhreviations initials Theprice hasbeenincreased t45o.oo, to and Theprice hasbeenincreasedby t45o.oo,and Abbreviations can be useful becausethey are Theprice hasbeenincreasedfrom t45o.oo. quick to write and easyto read.But both2 correspondentsneed to know what the abbreviations stand for. A C C UR A C Y The abbreviations and ros, for example, crr S p e llin g are INcorERMs which mean,respectively, Cost, Insurance, and Freightand FreeOn Board. Careless mistakesin a letter can give readersa But canyou be surethat your correspondent bad impression. Spelling, punctuation,and knows thatp&pmeans postageand packing? grammar should all be checkedcarefully.Many Someinternational organizations, rvaro e.g. peoplehavecometo rely on the spellchecker in (North Atlantic Treaty Organization),are their computersto ensurethat there areno known in all countries by the same set of spellingmistakes. But a word speltincorrectly initials, but many are not, e.g.ru (European mayform a completely different word, e.g. Union) and urv (United Nations).National Please give it somethough (thewriter means organizations, in the UK,c n r e.g. thought);I sawit their (the writer meansfhere). (Confederation British Industry) and luc of A spellcheckerwouldmiss thesemistakes. (Trades Union Congress), unlikelyto be are There is no substitute for carefully reading, or familiar to correspondents other countries. in proofreading a letter that you have written. A range of abbreviations are used in email correspondence >seepagezz,but many of Ti tl er. nanref" ;l nd addresses them are not widelyknown.If you are not absolutely certain that an abbreviation or set Usethe correcttitle in the address and of initials will be easilyrecognized, is best it salutation. Spellyour correspondentsname not to use it. correctly(nothing creates worseimpression a than a misspelledname),and write their hlumbers addressaccurately. If you do not knowyour correspondent, do We saw on page8 that the use of figures not assumethat they are one sex or the other, insteadof words for datescan createproblems. i.e.useDearSir/ Madam ratherthanDear Siror Numerical expressions alsocause can DearMadam.If you know a correspondents confusion.For example,the decimal point in name but not their sex,useMr / Ms,e.g.Dear Mr British and American usageis a full stop,but a / Ms Barron. comma is usedin most continental European countries, that a British or Americanperson so References would write 4.255 where a Frenchperson wouid write 4,255(which to a British or When replying to a letter, fax, or email, quote Americanpersonwould meanfour thousand all referencesaccuratelysothat it is immediately tw o hundredandfifty -five). clearto your readerwhat you are writing If there is the possibility of confusion,write about.36
    • Points remember to 1 Includethe right amount of information.If ai measurements,Prices, etc. o 5 you are respondingto an enquiry make sure o 5Specialcareshouldbe taken when quoting you haveansweredall the writers questions. llpricesor giving specifications suchas = 2 Plan before you start writing. Make sure you cmeasurements weights.Quoting these orincorrectlycan causeserious say everything you want to say,and in a :s. o logicalsequence.misunderstandings. 3 Usea simplebut polite styleof ianguage. 4 Make surethat everything you write is clearEnclosures attachments and and easyto understand. not use DoAlways checkthat you have actually enclosed colloquiallanguageor abbreviations thatthe documentsyou havementionedin your your readermay not understand. WriteIetter,or attachedthem to your email numbersin words aswell asfigures.> seepage14. Check, that you have too, 2 5 Accuracyis important. Payspecialattentionenclosed attachedthe right documents.If, or to detailssuchastitles and names,andfor example, documentyou are enclosingis the references prices,and rememberto andinvoicenll23r, make sureyou do not enclose checkenclosures attachments. orinvoiceYr,/2r3. When ordering,make sureyou quote the 6 Checkwhat you have written when you have finished. Make sure everything is as itordernumber correctly, especiallyininternationaltrade where mistakescanbe shouldbe.very expensive both time and money. in 37
    • vr 39 M A K T N GE N O _ u r R r E S OJa r!!l 39 39 Opening price Asking catalogues, lists, for etc. L- 39 Askingfor detailsa- 40 Asking samples, for patterns, demonstrations and 40 Suggesting terms,methods payment, discounts of and J -t 40 Asking goods approvaor on sale return for on l, or 5 41 Askingforan estimate ortender 41 Closing 42e&l - 42 : 42 43 44 45 : r:;: 46 Points remember to
    • EIMA KIN G EN q U IR IES ,A sl l i i nrg catal ogucsi pri ce l dsts, . for etc - -o trA simple enquiry can be made by email, It is not necessary give a lot of information to ofax, or cable.The contents of an enquiry will about yourselfwhen askingfor carArocux s,dependon three things: howwellyou know pricelists,etc.This canbe doneby letter,fax,the suppiier, whetherthe suppiieris basedin or email,but rememberto giveyour postalyour country or abroad, and the type of goods address. is alsohelpful to point out briefly Itor services you are enquiring about,Thereis any particular items you are interested in.a differencebetween askinga computer -Could you pleasesendyour currentcataloguecompanyabout the costof installing a andprice listJorexhibitionstands? areWecomplexcomputernetwork and askinga particularly interested standssuitable in forpublisherabout the price of a book. displaying furniture. -We haveheardaboutyour latestequipment inlasersurgery andwouldlikemoredetails. 3fi[ r Fill l] j: Please sendus any informationyou canTeilyour supplierwhat sort of organization supply, marking the letterForthe Attention ofyou are. Professor Kazuhiro,TokyoGeneralHospital,-We area co-operative wholesale societybased Kinuta- Setagayaku, Toky I apan. o, in Zurich. -I am planningto comeand studyin London-Our companyis a subsidiary Universal of nextautumn andwouldbegratefulif you Business Machinesand we specialize .. . in couldsendme a prospectus and detailsof-We areoneof the main producers industrial of yourfees. am particularly interested I in in chemicals Germany, andwe are interested in courses computing. n ... -Pleasewouldyou sendme an up-to-date price listfor your building materials.How did you hear about the company you arecontacting? might be useful to point out that ityou know their associates, that they were or ,Askfimg cietafi[sr fonrecommended you by a consulateor trade to When askingfor goodsor servlces you shouldassociation. be specificand stateexactlywhat you want.-We weregivenyour name by the Hoteliers you If replying to an advertisement, should Association Paris. in mentionthe journal or newspaperandits date,-Youwere recommendedto by Mr JohnKing, us and quote any Box NUMBER or department of Lawsom Davies, & MerchantBankers. number given,eg.BoxNo.j4t;Dept 4/t28. And-We wereadvisedby Spett. Marco Gennovisaof if orderingfrom, or referring to, a catalogue, Milan that you are interested supplying. . . in B R ocH U R x, pR ospE crus, w ays or al quotet he-The British Consulate Madrid hastold us in reference, g. Cat.no.at4g; Item no. 351t e Course that you are looking an agent in Spainto for et 362. representyou. -I am replyingto your advertisement intheIt is possible useother references. to Iune edition of Tailorand Cutter.Iwould like-We wereimpressed the selection by of to know more about the steampresses which gardeningtoolsdisplayed your standat on you are offeringat cost price. thisyearsHamburg Gardening Exhibition. -I wiII beattendingthe auctionto be heldat-Our associates inthe packaging industry TurnerHouseon t6 February, and am speakhighlyof your Zetapacking machines, particularly interested thejob lot listedas in and we would liketo havemore information Item No.35t. aboutthem.Could you sendus . . . 79
    • o -Could you please give me more information politely suggestthat, if your terms were met, 5 aboutcourse j6z,whichappears Bt inthe you would be more likelyto placean order. E tr IanguageJearning section your summer of -We usuallydealon a jo% trade discount|lt prospectus? basis with an additionalquantitlt discount -I would appreciate more detailsabout the for ordersover4ooo units. UniversityCommunications em which Syst -As a rule,our suppliersallow us to settle by you arecurrentlyadvertising y our website on - monthlystatement and wecanofferthe usual referencesif nece sary. s Asking sampleso for patterns, -We would also liketo point out that we usuallysettleour accounts a o /e, basis on anddemonstrations with payment by 3o-daybill of exchange. You might want to seewhat a material or -Couldyoulet usknow if you allow cash discounts?3 item lookslike beforeplacing an order.Most suppliersarewilling to providesamplesor -As we intend to placea substantialorder, we patternssothat you can make a selection. would liketo know what quantity discounts However, fewwould senda complexpieceof youallow. machineryfor you to look at.Instead, you would probablybe invited to visit a showroom, A ski ng for goods o{ !erpprued,l , or the supplierwould offer to senda (} r (,tr sal e or return representative. any case, it is practical, In if ask to seean example of the article you want to buy. Sometimes retailersand wholesalers want to -IAlhen replying, couldyou pleaseenclose a seehow a lIIrtr will sellbeforeplacing a flrm pattern card? order with a supplier.Two ways of doing this -We would alsoappreciate if you couldsend it areby getting goodson approvalor on a sALE somesamples the materialso that we can of oR RETURN basis.Ineithercase supplier the examinethe textureand quality. would have to know the customer well. or -Before selling toys weprefer to test themfor would want TRADE FE RE RENcE Thesupplier s. safety. Couldyou thereJore sendus at least would alsoplacea time limit on when the two examples theSpriterange? of goodsmust be returned or paid for. -I would like to discuss problemof the -The leafletadvertising your latesthobby maintenance beforedecidingwhich modelto magazines interested and we would like to us, install in myfactory. Therefore would be I stocka selection them.However, would of we grateful ifyou couldarrangeforone ofyour only consider placing an orderif it wason the representativesto on me withinthe next call usualbasis saleor return.Ifthis is of twoweeks acceptable,we sendyouafirm order. will -Where canI seea demonstration thisof -In the cataloguewe received from you last system? week, sawthat you are introducinga new we Iine in syntheticfur s.lMile we app r ecIate th at Su rg g e s ti n gte rm 5 , m e th o ds of incre ingpressure om wildlifepr otection as fr payment, discounts societies reducingthe demandfor realfurs, is and we are not surehow our customers would Companies sometimesstatepricesand reactto syntheticalternatives. However, we conditions in their advertisementsor literature would liketo try a selection designs.Would of and may not like prospective customers it bepossiblefor you to supplyuswith a range making additional demands.However,even if on an approvalbasis seeiJwecanencourage to conditionsare quoted,you can mention that a demand?Threemonthswouldprobablybe you usually expectcertainconcessions and enoughto establish market if thereis one. a4o
    • rn find the specifi.cations. would welcome We 5 tt inspectionof the site byyour surveyors,witha E.Esrrmern s are quotationsto completea view to supplyingan estimate the =. for ojob, e.g.putting a new roofon a factory or reconstruction.lnstallingmachinery. TTwDERS similar arequotations,but in written form. They are oftenusedwhen the job is a large one,e g. building acompletefactory.When the work is for a Usually a simple thank you is sufficienttogovernment,or is a large undertaking,there ciosean enquiry.However,you could menti.onare often newspaperadvertisements inviting that a prompt reply would be appreciated, ortenders. that certain terms or guarantees would be_ A DVERT ISEM XNT : necessary Thelrish TouristOrganizationinvitestenders -We hopeto hearfromyou in the nearfuture. 3 from building contractors erectseating to for -We would begrateJulfor an early reply. t o,o o o peoplefo r the Dublin Summer -Finally, we would like to point out that FestivalTenders shouldbeinby t Marchzo-, deliverybeforeChristmasis essential, and and wiII be assessed price and suitability of on hopethat you can offer us that guarantee. construction plans. -If you can agreeto the concessions have we- A DVERT ISEM XNT : askedJor,we placea substantial will order. TheZenaChemicalCompanyinvitestenders -Prompt deliverywould be necessary we as from private contractorsforthe disposal of havea rapid turnover.Wewould therefore chemicalwaste.Only thoselicensed deal to need your assurance you couldmeetall that with toxic substances shouldapply.Further deliverydates detailsfrom . .. Youcan also indicate further businessor otherA companymay write crRcurAR rnrtt n s to lines you would be interestedin. If a supplierseveralsuppliers, inviting offersto completea thinks that you may becomea reguiarconstructionjob, or to do repairsor decorating. customer, they will be more inclined to quote-We are a largechain of theatres, and would competitiveterms and offer concessions. be interested receiving in estimatesfrom -If the product is satisfactory, will place we upholsterers re-cover seatsin our to the further orderswith you in thefuture. two main theatresin Manchester. -If the pricesquotedare competitiveand the-We are writing to a number of building quality up to standard,wewill order on a contractors invite estimatesforthe to regularbasis conversion NorthboroughAirfield into a of -P rovided y ou can offerfav ourablequotatio ns sportsand leisurecentre.Thework will include and guaranteedeliverywithin four weeks erectingbuildingsand providingfacilities from receiptoJorder,wewiII place regular suchas skislopes parachute and jumps. orderswithyou. Thedeadlinefor completionis the end of December zo-. If you canprovide a competitive estimate please contactus at ...-As you may be aware from recentpress reports,we havetaken overInternational Motors plc and are inthe process of automating their Hamburgfactory. Weare writing to several engineeringdesigners, includingyourselves,who think may be we interested convertingtheplant to afully in automated you productionunit.Enclosed will 4r
    • 6o Rcqucrtfor et crtelogucand Dear Sir / Madam(tEul pdrc llrt Please would you send me your Spring catalogueand price list, quoting CIF prices,LeHavre? Yours faithfully F. Rnnl F.Raval(M.) Rcqurrtfore prolpoctur Dear Sir / MadamUIo I would like some information about your coursesin English for Business Executives, beginning in July.-g c Pleasesend me a prospectus,details of your fees,and information aboutEox accommodation in London for the period July to December.If possible,IEI would like to stay with an English family. Yoursfaithfully Y.Iwaru.ni Ylwanami(Ms) tcquort for grncnl Dear Sir / Madam lnformetlon Couldyou pleasesend me details of your tubelesstyres rivhichare being Notethat the reference advertisedin garagesaroundthe country? to rnnoEpnr c r s h i s int I would appreciate a prompt reply quoting trade prices. lettertellsthe manufacturerthat is he Yours faithtully d e a lingwita RE T A T L ER h or wholesaler, a not Erian Wynut private individual. BrianWvmer lf these examples weresentasemail messages,wouldbe it acceptable remove to the salutation and cha the nge complimentary close f rom You Jaithfu Ily to rs the less formalTha ng nki you in advance. Ihqr€ lhret thott enqurrret (o.rld lrc rrnl b y l? lttr . | .| r . o r e m .r ,l42
    • Replyto an tn 5 l| advcrtisemcnt E o ln thisletterthe h 251 desRaimonieres rue customer replying is to F-86ooo Poitiers Cedex an advertisementfor cosin a trade journal. Theadvertiser gavelittle Tdlephone : 9968ro3r {+13, information, the so (+1 T6f6copie 1)2j41o2163 writerasks details. for (o f r Emarl ge..rrC@;:lrsc ir Ref.PG/AI 12May2O- 3 The SalesDepartment tn R.G.ElectronicsAG x t, Havmart 601 3 E. D-50000Koln 1 o o o DearSir/Madam We are a large music store in the centre of Poitiers and would like to know more about the re-vwitable and recordableCDsyou advertisein this months edition of Lectron. Couldyou tell us if the CDsare leading brand names,or made by small independent companies,and whether they would be suitable for domestic recording?We would appreciateit if you could sendus some samples.If they are of the standard we require,we will place a substartial order.We would also like to know if you offer any trade discounts. Yoursfaithtully P. Qirad. P.Gerard(M.) ManagerWhydoes G6rard M. Whatrequirements Whatconcession Which words the in tO EsayWearea large doeshesuggestmust doesheaskfor? letter have similar a o 5musicstore? bemet before will he meaning the to f. lf hehadbegun the o 5Howdidhehear place order? an letter DearMr-, following? s theabout cos? whatwouldthe r mostimportant complimentary close b typeofproduct be? < large d reduced price 4l
    • n o Enquirryftom a t buyhryagumt E E|lI Companies often haveagentsin other countries sellor who buyproducts forthem >seepages r59+7o.In thisemailthe agentls JohnMerton actingon behalfofher PRr Nc r P A r s inCana d a . Ourref.180/MB3 DearMr Merton t! E Youwererecommended us byyourtradeassociation I amwriting behalfof to and on o ourprincipals Canada, areinterested importing in who in chinawarefromEngland.g B E Couldyousendus yourlatestcatalogue pricelist,quoting and yourmostcompetitive o xrll prices? Ourprincipals a largechainstorein NorthAmerica will probably are and placesubstantial ordersif thequalig andpricesof yourproducts suitiable. are Manythanks. LindaLowe Director Sanders LoweLtd & PlanterHouse, Princes Street London ECI 7DQ +44 Tel.: (0)20787457 Fax:+44(0)207 87458 Email:Llowe@sanlo.co.uk44
    • Enqulryftom ln I 5 rntelhrto E rfionfn o UT rnrnufrctuu This email fromthe is Chief Buyerfor chain a of shops Birmingham in to an ltalian knitwear manufacturer. buyer The explains hegot how to knowaboutthe manufacturerl and suggests a quantity that discount acceptance andDear Sir/ Madam of hismethod of lnWearea chain retailers of based Birmingham arelooking a manufacturerwho in and for payment would x !lcansupplyus witha widerangeof sweaters the mensleisurewear for market. were We persuade to place him 3 an order. isstating He E oimpressed thenewdesigns by on displayed yourstand theHamburg at Menswear o histerms hisenquiry inExhibition month. last because feels he that 3 ll placeAs we usually largeorders, would we expect quantity a discount addition a in to asaB U LK euvrnhe prices. termsof payment normally candemand certain20o/olrade discount netlist off Our are 30-day of bill conditions. Butyouexchange,D/$. will seefromthe replylf these interest andyoucanmeetorders over500garments one conditions you, of at > page that,although 58time,please catalogue price the ltalian manufacturer sendusyourcurrent and list. wantsthe order, does he youWehope hearfrom soon. to not liketheterms,and suggests conditions thatPeterCrane aremore suitableto hi m.ChiefBuyerE Lynch& Co.LtdNesson House, Birmingham 3EL NewellStreet, 83 +44Telephone: (0)21236657 1Fax:+44(0)212368592Email:pcrane@lynch.co.uk EI Whatexpression Whatmarket I Whatkinds of I W hi chw ordsi nthe doesPeter Crane use areLynch Co. & discount they are letterhave similar a to indicate that Lynch in? interested asking for? meaning the to & Co. a large is Where Lynch did & I Howwouldpayment following? E company? get Co. to knowabout bemade? r selection Satex? b presented 5 Howmanysweaters c fixedprice aretheylikelyto d itemof clothing order? 4J
    • Points remember to6o 1 Givedetails of your own company aswell asI asking for information from yourqE prospectivesupplier.EI 2 Be specificand state exactlywhatyouwant. If possible,quote box numbers, catalogue references, to help your supplier identify etc. the product/s. 3 Ask for a sample if you are uncertain about a product. 4 Suggestterms and discounts,but be preparedforthe supplierto make a counter- offer.3 5 Closewith an expressionsuch asI look forward to hearingfrom you and / or indicate the possibility ofsubstantial ordersor furtherbusiness.+6
    • 4 8 R E PL Y TN c E N o_urR rE s ro n4 8 Op e n i ng4 8 C o n fi r mi ng that you canhel p o4 8 Se l l i n g your product4 8 Su g g esti ng ternati ves al g R e fe rri ng customer anotherpl ace to IO the494 9 Se n d i n g catal ogues, cel i sts, a n o s a m pl es pri prospectuses, o rn4 9 A rra n g i ng demonstrati ons vi si ts and50 Closing50 CtVtNC O_U OTA TtON S s, Prices =50 51 51 Transport insurance Discounts and costs o- 5153 Methods payment Quoting of delivery terms Fixed date andnegotiable terms -o c535354 Civing estimate an o r+5454 SJ55 !f.5657 o58 5596o Points remember to (n
    • tr REPTYI NG TO ENO - UI R I E S product Sellingyourot!o Encourageor persuadeyour prospective 5 Opening E customer to do businesswith you. A simpleTs In an email reply,the rr: abbreviation in answer that you have the goodsin stock is nott! the subject line automatically shows that you enough. Your customer might have made ten.gEt. are replying to a message. Therefore it is not other enquiries, so remember it is not only inoc usually necessarytouse a salutation. sales lettersthat you needto persuade. >See pages zo-z7formoreon email. Mention one or two selling points of your However,letters are different. Mention your product, including any guarantees,special prospectivecustomersname, e.g.if the offers.and discounts. customersignshis letterMr B.Green,begin - IAlhen you have had the opportunity to see DearMr Green,xorDear Sir. the samplesfor yourself,wefeel sureyouwill4 Thank the writer for his or her enquiry. agreethat they are oJthe highestqudlity; Mentionthe date of his orherletter and quote and to seea wideselection online,go to any other references. www.bettaware.co.uk. - Thankyou for your enquiryof 6 Junezo- - Once you haveseenthe Delta 8oo in in whichyou askedabout ... operationwe knowyouwill be impressed by - Iwouldlike tothankyouforyour enquiryof its trouble-freeperformance. to May zo-, and am pleasedto tellyou that - Wecan assure you that the Alpha 2ooo is one we would be ableto supplyyou with the ... of the most outstandingmachines onthe - We werepleasedto learnfrom your letter of market,and our confidence it is supported in to December that you are impressed with our by ourfiv e-year g uarantee. selection . .. of - Thankyou for your letter,Nt t6gt, which we g 5uggestin alternatives receivedthis morning. Ifyou do not have what the enquirer has asked for, but have an alternative, offer that. But do that you canhelp Confirming not criticize the product he or she originally Ietthe enquirerknownearthe start of your askedfor. reply ifyou have the product or can provide the - ... and while this enginehasaII the qualitiesoJ servicehe or she is asking about. It is irritating the modelyou askedfor,the Powerdrive has to read a long letter only to find that the the added advantageoffewer moving parts, supplier cannot help. so reducingmaintenance costs.Italsosaves - Wehaveawide seledionoJsweaters that wiII on oi l asi t ... appealto the market you specified. - Themodelhas now beenimproved.Itssteel - Ourfactory would haveno problem in casinghasbeenreplaced strongplastic, by producingthe 6,ooo unitsyou askedforin whichmakesthe machine muchlighter and your enqutry. easiertohandle. - Wecan supplyftom stockand wiII have no - Of course, Ieatheris an excellent upholstery trouble inmeeting your deliverydate. material,but escalating costs havepersuaded - I am pleasedto say that we wiII be able to many of our customerstolookforan supply the transportfacilities you require. alternative whtch is more competitive in - Wecan ofer door-to-door delivery services. price. TaretonPlasticshaveproduced a high- quality substitute,Letherine, which hasthe texture,strength,and appearanceofleather, but at less than a quarterof the cost.Wefeel confidentthat the samplesenclose wiII d convtnce you...+8
    • Referring customer the to your customer know when they are likely o to arrive. t-anotherplace .D - Pleasefi.nd enclosed currentcatalogue our t 5You may not be able to handle the order or andprice list quoting c r r pricesKobe.The c 4answerthe enquiry.If this is the case, the tell unitsyou referredtoin your letterare c oenquirer and,if possible,referthem to another Jeaturedon pp.3t-34 undercatalogue c,company which can help them. numbersy32-y37. Whenorderingcouldyou o 5- I regretto saythat we no longerproducethe pleasequotethesenumbers? samples The you type of stapleryou refer to as there is no askedforwillfollow underseparate cover. longersutficientdemandfor it.I am sorrywe - Weenclose bookleton the Omegazooo our cannothelpyou. and aresureyou wiII agreethat it is one of the- Thebookyou mention is not publishedby finest machines its kind.It can be adapted of us,but by Greenhill Education Ltd.Their (see to your specifications the section address ... is Structural changeson page tz). 4- Weno longer manufacture pure cotton shirts - Weenclose summercatalogue, our which astheir retailpricestend only to attract the unfortunatelyis only publishedin English. upperend of the market.AIIour garmentsare However,we haveincludeda German nowpolycotton, which is stronger,needslittle translationfor the relevant pages(4t-4j and ironing,and allowsvariationsin pattern, hope this will prove helpful. whichyou can seeon our website at - . .. and we haveenclosed price list,but our www.elegance.co.uk. However,if you are only shouldpoint out that pricesaresubject to interested pure cottongarments,we in advise changeas the marketfor raw materialsis you to contactLouisFashions at . .. Ltd very unstableat present.Evenif you can handle the enquiryyou maystill have to refer the enquirer elsewhere. A rran gi ng demonstrati ons anelvi si ts- WemanuJacture produd you require, the but we only deaI with wholes alers,not retailers. Certainproducts, heavy equipment, e.g. Therefore,I suggestyou contactour agent,R. machinery and computer installations, may L.Deprd SA, Montpellier 28,Paris,. .. rue needdemonstrating. thesecases In the- Our agentsinltaly areIntalS.p.A,ViaAlberto supplierwill either senda representative or Poerio 79,Rome, mail: <s s@intal.co.it>. E ale adviser, suggest or that the customer visits Theycarrythefull rangeof our products. their showroom. - Wehaveenclosedfull detailsof the Laren welder, a demonstration but would be price catalogues. lists,Sending necessary showyou itsfuII capabilities. to WeprosPectuses, samples and therefore suggest thatyouvisit our centreinRemembertoenclose current catalogues and Birmingham,where equipmentis setup, theprice lists withyour reply. If you are attaching sothat you canseethe machinein action-catalogues, pricelists,etc.to an email message, - As the enclosed bookletcannotreallyshowmake sure you compressthem to saveyour the eficienry oJthis system, would be werecipients time when they download the happy to arrangefor our representative tomaterial.If pricesare subjectto change, let visityou and give a demonstration.If you areyour customerknow.It is bad policy suddenly interested a visit,please in the enclosed in fiIIto senda letter telling a customerthat prices pre-paidcardand return it to us.havebeenincreased ten per cent after you by - Theenclosed catalogue wiII giveyou an ideahave quoted a firm price.And ifyou are of the type of soundequipmentweproduce,sendingsamples uworn sEeARATE covEn,let but may we suggest that you alsovisit our 49
    • tr agentsshowrooms Rotterdamwhere in you - Thenetprice of this articleisf,too.oo,too can seea wide rangeof units?Theaddressis .. . which vtr must beaddedat t7.5%, making aGE - Beforeinstallingthe equipment,we would grossprice of tn7.5o.3 E Iiketo sendMrTony Grifith,our Chief - Wecanquoteyou a gross price,inclusiveofIt tr Engineer, look overyour plant andprepare to deliverycharges, of fi47.5oper rco items. o a reporton the installation,takingyour Thesegoodsare exemptfromvAr..g a particular requirements into account.We A quotation is not necessarilylegally binding, oe suggest you contact us to arrange a i.e.the companydoesnot haveto sellyou the convenient date. goodsat the price quotedin the reply to an enquiry. However,when prices are unstable, Closing the supplier will say in their quotation that their pricesaresubjed to change the .If Always thank the customer for contacting you.4 Ifyou havenot done so at the beginning ofthe companymakesafirm ofrer,ilmeansthey will hold the goodsfor a certaintime until you letter or email,you can do so at the end.You or der,e.g. r m 4 days. Again, this is not Iegally fi shouldalsoencourage further enquiries. binding,but suppliersgenerallykeepto firm - Onceagain we would liketo thank youfor offers to protect their reputation. writing. Wewould welcome further any - Thepricesquotedaboveareprovisional, since questions you might have. we may be compelledby the increasingcostof - Please contact us again ifyou haveany raw materialsto raisethem.I wiII informyou questions,using abovetelephone the number immediately if this happens. or email address. - Wecan offeryou a price of t 5,zoo.oo per - I am sorrywedo not havethe modelyou engine,firm zt days,after which the price wiII askedfor, can assure but you that the besubjectto an increase 5%. of alternativeI havesuggested meetyour wiII requirements. aseremember that we ofrer PIe Wheneverpossible you should quote pricesin -y afuII thr ee ear g uarante e. your customerscurrency,allowing for - Wehopeto hearfromyou again soon, and exchangefluctuations. co.nassure you that your orderwiII bedealt - Theprice oJthis modelis Yz,8oo,oooat withpromptly. todays rate of exchange. - Wecan quoteyou a price of €3oo per rco units,though I regretthat, because of GIVIN G O-U OT A T ION S Jluctuatingexchange rates,wecan only hold In your reply to an enquiry you may want to thispricefor four weeks from todaysdate. giveyour prospective customera o_uorATroN. - Thenetpriceof $5jo.ooper unit is extremely Belowis a guide to the subjects you should competitive. cover. Prices Mhen a manufacturer, wholesaler,or retailer quotes a price,they may or may not include other costssuchastransport,insurance, and pURcHASE rax (e.g.var(Varur Aooro Tax) in the UK).Priceswhich includetheseextra costs known ascRoss pRIcE ; thosewhich are s excludethem areknoum as N ETpRIcEs.5o
    • Tnansport insuranee and eosts Diseounts o - E. oThere are a number of abbreviations that Manufacturersand wholesalers sometimes 5 !Jindicatewhich price is being quotedto the allow a discount (i.e. deduction)on the net a = cl ltcustomer. Theseare established the by or grossprice.Theseare ofdifferent kinds,e.g. c oIs rr n rv a rro rrra C H n Ms rn o r C omann r ncn a trade discountto sellersin similar trades;a !,(ICC) and arecalledIr.lcornnus. Theyare quantity discount for orders over a certain rf. orevisedregularly,and additionalterms may = amount; a cashdiscountif payment is madebe added, the phrasecrr NaplesIncoterms e.g. within a certaintime;a LoyArry DrscouNrzooo landedmeansthat a consignmentis when companieshave a long association.covered under an Incoterm c r r (cost, - Weallow a j% cashdiscountforpaymentinsurance, and freight) setin the year 2ooo, within onemonth.up to the time it is landed in Naples. - Thenetprice of this modelisftTo.oo,Iess rc% The main Incotermsare in four groups, discountforquantitiesup to rco and ry% 4which are named after the flrst letter in the discountforquantiti.es over1oo.term. - Wedo not normally give discounts private toGroupC customers, because your long but ofThe sellercovers only the costslisted to get the associationwithour companywecan ofrergoodsto a named destination,e.g. freight and you tz% offthe retailprice.import duties,but not insurance. - The pricesquotedare crn Yokohama,but areGroupD subject a zo%trade discountofr netprice. toThe sellercarriesall the costsand risksto get Wecan offerafurther to% discountoff netthe goodsto a named destination. pricesforordersof more than z,ooo units.GroupEThe buyer paysall costsoncethe goodshave Mef hods of p.rvrnent premises.left the sellersGroupF When quoting terms,you may require,orThe sellerdeliversthe goodsto a carrierwho is suggest, any of several methodsof payment,appointedbythe buyer. e.g,Ietter of credit or bill of exchange. > Formoreon this subject, pages see 78-79, Incotermsare quoted in correspondence in and47-157.the following way: t3o,ooo crn Hong Kong (i.e. - On receiptof a cheque the amount quoted, forthe price includesall deliverycoststo Hong we will sendthe articleby registered mail.Kong,exceptfor insurance); $35,ooo roa - Paymentfor initial ordersshouldbe made byRotterdam(i.e. price includesdeliverycosts the sight draJt,payableat Den Norsketo when the goodsare on boardship at Creditbank, Kirkegaten OsIo cashagainst n, t,Rotterdam). Abbreviationsfor Incotermsmay documents.alsobe written inlower case,e.g.cfr orfob. - Weare willing to consider openaccount Two otherterms which shouldbe noted,but facilities ifyou canprovidethe necessarywhich areusedmainly in the UK,are: bank reference.- Cannracr yuo (c/ e),i.e. charges will be paid by the sender, WewiII send e.g. replacementsfor damagedgoodsc/e. the- Cannracr FoRWARD (c/r),i.e.charges will be paid by the receiver, .Asyou are e.g responsible the damage, wiII send for we replacements c/r. 51
    • 5 tr INCOT ERM AB B R E V IA TION E X P LA N A TION.9 o o Gro u pC t q Costand FReight C FR The selier pays all delivery coststo a named! tr destination,exceptfor insurance. a! n.g Cost,Insurance, C IF The sameas crn, exceptthe selleralsopays CLo and Freight the costof insurance.4 CarriagePaidTo CPT The seller pays all delivery coststo a named destination.The buyer pays any additional costsafterthe goodshavebeendeliveredtoa nominated carrier.4 Carriageand C IP The sellerpaystransport and insurancecosts InsurancePaid to a named destination, but not import duty. Gro u pD Delivered at Frontier uAr The seller pays all delivery coststo the buyers frontier,but not import duty. DeliveredEx-Ship DES The seller pays all delivery costson board ship, but doesnot clearthe goodsfor import at the named port of destination. DeliveredEx-O_uay DEO The seller pays all delivery coststo a port named by the buyer,but doesnot clearthe goodsfor import at the named port. Delivered Duty Paid DDP The seller pays all delivery costs,including import duty, to a named destination in the importing country. Delivered Duty Unpaid DDU The sameasDDp,exceptthat the sellerdoesnot pay import duty. Gro u pE EX-Works EXW The buyer pays all delivery costsoncethe goods have left the sellersfactory or warehouse. Gro u pF FreeCArrier FCA The seller pays all delivery coststo the buyers carrier, and clearsthe goodsfor export. FreeAlongsideShip FAS The seller pays all delivery coststo the port. The buyer paysfor loadingthe goodson to the ship and all other costs. FreeOn Board The seller pays all delivery coststo when the goodsare onboard ship at a namedport.The buyer pays all other costs.t2
    • be discussed. the f,nal examplethe supplier In o FQuotingdeliverydate g softensthe tone further by askingthe oIf the enquiry specifles deliverydate, a customerto conflrm whether or not the !, 5confirm that it canbe met, or if not, suggestan arrangementis satisfactory. CL - Weusuallyofferan B% tradediscounton ltalternative date.Do not make a promise that g oyou cannot keep as it will give you a bad r o s prices, and wouldpreferpayment by !Jreputation.If a deliverytime is a condition of irrevocable letterof credit. o - Normally we allow a 4% trade discount =ordering,the customercouldrejectthe goodsor sueyou ifyou breakthe contract. offnet priceswith payment on a documents- . .. and we arepleased saythat we can to againstpayment basis. Please us know if let deliverby November soyou will havestock L thisarrangementis satisfactory. for the Christmas sales period.- As thereare regularsailings from Liverpool NewYork, aresurethat the consignment we to Giving estimate an 4 will reachyou weIIwithin the time you Companies which are askedto give an specified. estimatefor a particularjob may include- Wehavethe materialsin stockand wiII ship the estimatein tabulatedform in a letter them immediatelywe receive your order. > seepage59.More often,however, they will- As thereis a heavydemandforfansat this sendtheir offcial estimateform with a nnrrarin n la++av time of year,pleaseallowatleastsixweeksfor delivery. - Asyou know,our representative visited has- Wewould not beableto deliverwithin two yourfactory to discuss your proposed weeks receipt order, we would need of of as extension, I nowhave and pleasurein time to preparethe materials. However,we enclosing oficial estimate. our couldguaranteedeliverywithinfour weeks. - Theenclosed estimatecoverslabourand partsand carries six-month a guaranteeon allwork comaleted.Fixedtermsand negotiable termsYoucan quoteterms in two ways:stateyour price and discountswith no room fornegotiation,or suggest customercould thediscuss them. In the two examplesbelow,thewriters makefirm quotes, indicating thatmethodsof payment and discountsarefixed.- Alllist pricesarequotedrot Southampton and aresubject a z5%tradediscountwith to payment by letterof credit.- The prices quotedarenxw,butwe can arrangefreightand insurance (crc Hong Kong if require However, ) d. unlessotherwis e stated, payment shouldbe madeby jo-day biII of exchange,documents against acceptance.In the next two examples, useof the theadverbsnormally andusually softenthetoneof the statementsto indicatethat, althoughthe companypreferscertainterms,thesecan 53
    • I tr R eply t o a r eque rt o DearMrRaval f o r a c at alogue G o a n d pr ic e lis t Thank you for your enquiry of 31January.We encloseour Spring Catalogue 3 q and current price list quoting CIFprices LeHavre.It g Seepage4z for a! We would like to draw your attention to the trade and quantity discounts I the request. o we are offering in our SpecialPurchases section on pp. 19-26,which may be Aoea ofparticular interest to you. Please contactus if we canbe of anyfurtherhelp. Yourssincerely :4 TimHoad 5 Replyto a requesto for a prorpectur DearMs Iwanamigg Pleasefind enclosed prospectus our from Julyto coveringcourses CL . Seepage 4z for E December.Details of feesand accommodation in London for that period are G the request. x coveredin the booklet Living in Londonwhich accompaniesthe|ll prospectus. At present we still have placesavailablefor students taking the English for BusinessExecutivescoursebeginning in July,but would ask you to book as soon as possible sothat we can reseryea place for you and arrange accommodation with an English family. We are sureyou will enjoy your stay here and look forward to seeingyou. Yourssincerely I, M.Preston(Ms) Reply t o. r r eque rt fo r gener al DearMrWymer i n f or nr at ion Thank you very much for your enquiry. I enclosea cataloguegiving detailed page for information about our heavy goodsvehicle tyres, including the impressive See 4z results we have achievedin rigorous factory and track tests.Pleasenote the request. especiallythe items on safety and fuel economy-the main selling points of this product. With regard to trade discounts,we can offer 25%off listprices to bona flde with quantity discountsfor ordersover f,20,000.00. retailers and wholesalers, We would be pleasedto supply any further information you require. Yourssincerely . .,r1 DarrenTreadwell54
    • Catalogues and o samPles ! - o 5 Electronics flHl?,1", m.ffi. AG M.Gdrard wroteto R.G. Electronicsenquire to 3 !, = r aboutc os >seepage t (+49) Telefon zzt3z 4z 98 43. (+49)zzt 83 6t z5 Telefax Heimplied that hisstore !l de wasa large one,that he o 5 ilil:,?::f:"rgeco wasonlyinterested in 6 high-quality products, Your PG/AL Ref: andthat hemightplace a substa I order.This ntia 14Mav20- isthe reply. l1. Geraro Manager 4 DiscS.A. Il| 251 desRaimonidres rue x t F-86000PoitiersC6dex 3 E. o o uear ]vI.ueraro o Thank you for your enquiry of 12May in which you askedabout the CDs we advertisedinthis months edition of Lectron. I can confirm that they are of high quality, and suitable for domestic recording. They areKolbyproducts, brand name you will certainly a recognize,and the reasontheir prices are so competitive is that they are part of a consignmentof bankrupt stockthatwas offeredto us. Because theirlowprice, andthe small profit margin,we will not be of offering any trade discounts on this consignment. But we sell a wide range of electronic and computer products and have encloseda price list giving you details oftrade, quantity, and cashdiscounts. We have sent,by separatepost, samplesof the advertisedCDsand other brandswe stock, and would urge you to placean order as soonaspossibleas there has been a huge responseto our advertisement.Thank you for your interest. Yourssincerely R. Qer|ar-h, (Herr)R.Gerlach Sales Director Enc.price-listWhat references does Why arethe cos Does offerany he What other material CanDiscS.A. order rO sHerrGerlachquote? being sold cheaply? discounts the on hashe sentto Disc wheneverthey want o 5 goods? advertised 5.A.? to? s o = 6 55
    • I E Sellingthe o a! product o t I Thisisa reply the to =- GLASTON! buying agentwho E a! , emailed Glaston C ay :a1i r r *o ol.e V r .u,r POTTE RlEi rrp o Potteries seepage44 >o A. on behalfofher Tel ephone+44 (o)r282.i .5rl lo2 principals Canada. in +44 i o j tz8,-63rE ; Facsi mi l e Asthe agentmade E mai lI mettor@gastc:.co rr< no reference any to wWVv Hla5iCn CC-- particular of line chinaware was she 10June 20- interested in,and did MsL.Lowe4 not mention terms, Sanders& Lowe Ltd thisreplytakes the Planter House o formof a sales letter.E Princes Streeto LondonECl7DO_!c E o DearMs Lowetll x We were pleasedto receiveyour enquiry today,and are enclosingthe catalogueand price list you askedfor. Youwill seethat we can offer a wide selectionof dinner and tea services ranging from the ruggedGreystoneearthenware breakfast setsto the delicateMingbone china dinner service.You can choosefrom more than fifty designs,which include the eleganceof Wedgwood,the delicate pattem of Willow, and the richness of Brownstoneglaze. We would very much like to add your clients to our worldwide list of customers,and could promise them an excellent product with a fust-class service.We would be glad to acceptordersfor any number of pieces,and can mix setsif required. Youwill seethat ow prices are quoted CIFto EasternCanadian seaboard ports and we are offering a special10%discount off all net prices,with delivery within three weeksfrom receipt of order. If there is any further information you need,pleasecontact us,or go to our website at the addressabove.Onceagain thank you for your enquiry. Yourssincerely J. Muton J.Merton(Mr) SalesManager Enc. R egr s ter ed o 716481 N v Ar R eBr s ter ed o r 33 53.i 3r B N c Er Howdoes Merton Mr How does he imply 3 Whattermsfor Which words the in3 drawattention his to that his companyhas deliverydoGlaston letterhave similar a 3 companysmany an international Potteries quote? meaning the to = prodc)| ucts? reputation? 4 Howdoes he following? encourage further r range enquiries? b select c timewhenorder received56
    • Offeringan F o alternative E o !, A w h o l e s a l e rs o u t o f i = CL stockofthe adapters lt that hercustomerhas tr o askedfor,so she offers a !, substitute. However,the o 5 PedroMonteiro new producthasnotyet beentestedand she knowsnothingabout its performanceor safety. (K153, Enquiry K157 units) 4DearSr Monteiro tnThankyoufor youremail.I regretto saythatwe are out of stockof K153and Kl57 units, and x !,co notexpect anotherdelivery untillaterthis month. 3 g olVe currently are testing consignment a fromTaiwan, thesedo not havea Belgian but o 3Standards Institute and we wouldliketo complete testsbeforeputting stampof approval our 9.:hemon the market. willcontact We you againas soonas our testingis completed, when or:he unitsyou requested available, are whicheverdateis the earlier.Di a n eChar c ot M m e) (r,t3 l a gerI i SC har c ot S . A . R. L.: =:e du 20 ao0t79, 8-4000, Lidge : : i+32)49-240886-: ecopie:(+32) 49-16592=-all: d.charcot@dscharcot.co.bei W hat is Mme 2 How doessheshow 3 ls Mme Charcot rO c Charcots problem? her c us t om er t hat s he r el y i n g o n h e r a is concerned about customertocontact 9. a safety? heragain? 57
    • g Quotationof o tcrmr o o 3 q This is a replyto the S a te x S.p .A- l ercto,.ri c,r 1o)67699ro +39 trel :t.r.r,:-i (o,)66i 3i 5,;7;! genera en qu iryin whic h l 39 tr Mr Crane, ChiefBuyerat Vr .1( i i []i eI.r t F aEa o" r t,tr t. r ,.l r i I E m,rr!; rausrod@satex (o.rI t! o F.Lynch& Co,askedfor Cl certainconcessions v.,.r Vs.rif.: 6 Feb.20- rr 0,e > seePate 45. Notice rs nf D/1439 how Sig.Causioof Satex doesnot turn down his 20- 21February requests but makesa Mr PeterCrane counter-offer. ChiefBuyer4 F.Iynch & Co.Ltd Nesson House o Newell StreetUg Birmingham833ELo UK A. E a!EI x DearMr Crane We were pleased receive to your enquiry and to hearthat you liked our rangeof sweaters. can conflrm that there would certainlybe no trouble We in supplyingyou from our wide selection garments. of We can offer you a quantity discount,which would be 5%off net pricesfor ordersoverf 2,000, the usual allowancefor a trade discountin Italy is but 159/o,andwe always deal on payment by sight draft, cashagainst documents.However,we would be preparedto review this oncewe have established flrm trading association a with you. you Enclosed will find our summer catalogue and pricelist quoting prices crr London. are sureyouwill find a ready salefor our productsin We England, haveother retailersthroughout Europeand America,and we as hopevery much that we can reachagreementon the terms quoted. Thank you for your interest. We look forward to hearing from you soon. Yourssincerely E. C;::ut...t) D.Causio(Sig.) Sales Director Encs. DoesSig.Causio What sort of payment What is enclosed Which words the in agre e a ll Mr to doeshe askfor? with the letter? letter have similar a Cranes requests What doeshe How does5ig.Causio meani ng the to concernrnS suggestabout the indicatethat his following? discou nts? , bi l lpai don method of payment companydeals in the future? internationa presentation lly? r reconsider , linkor connection58
    • An estimate 7 o E. Thisexample ustrates ill o e€ anestimate in sent !J = tabulated formin the CI l i ( c n r D e Ro a d We."nbicyShopfitters Ltd. 5 bodyof a letter. refers lt t !ernL! ey Ie erhone +di ,cl -.c E 9o3 z3z; o ;a,i +4t (o)zo 89o3:323 back theexchange to of o M i d d : e s ex !ma,r: p,ane@tvei rsncpcom emailmessages o rn9 6oe I ) seePages 23-24, when 5 Wembley Shopfitters Mr K. Bellon 22}une20- saidtheywouldsend SuperbuysLtd theirsurveyorto provide SuperbuyHouse anestimate forthisjob. WolvertonRoad LondonSW16 7DN 4 DearMrBellon ln x !, Estimate for refitting SuperbuysHalton RoadBranch 3 Our Surveyor,lohn Pelham,visited the abovepremiseson Wednesday E o 16lune, and our costing department have nowworked outthe following .D estimate for fixtures and fittings. This includes materials and labour. o Fitting 200m of Contactshelving in main shop per and storeroom @f 35.00 metre t2000.00 Erecting r5 steel stands plus shelves23m x 6m @f,110.00 each t1,550.00 laying 3,320 sq.m.Durafloor flooring @f,i8.00 persq.m. f59,760.00 Rewiring; fixing power points, boxes,etc.36Everglow lightfittings @f,28.00each. t1,008.00 Subtotal f 69,418.00 plus VAT@17.5% tr2,748-7s TOTAT f 81.566.15 We feel sure you will agreethat this is a very competitive estimate,bearing in mind that we use top-quality materials backedby a one-yearguarantee. We can also conflrm that the job will be completed before the end of February provided that no unforeseen circumstancesarise. If you have any further questions,pleasecontact our SeniorSupenrisor, Mr Terry Mills, on the abovenumber, ext. zr. We look forwardto hearing fromyou soon. Yourssincerely ?. Lan"e. P.Lane (Mr) ?eg .c r .tor t 45f:t Director t ;" t92E "Whatisthe subject of 4 Whatmightprevent Whichwords in the |o trthis letter? thejobfrombeing letter havea similar nlsthefigure 69,4t8 f a completedin meaningto the o February? following? =netor a gross l? tota r buildingsWhydoes Lane Mr 5 W h a ti s MrMi l l s s j o b b calculatedconsider a this title? c supportedcomoetitive offer? 59
    • Points remember to 5 E 1 In salutations,use the customersname.9 ratherthanDear Sir/ Madam. t! o 2 Letthe customer know early in the letter t E whether or not you can help them.! E G Ut 3 Male surethat you have supplied all the o information you think will help your e o customer including, if relevant, catalogues4 and price lists. 4 Than-kthecustomerfor contacting you, and encouragefu rther enquiries. 5 When giving a customer a quotation, in4 addition to the price quote transport and insurance costs,any discounts,method of payment, and delivery date. 6 Do not promise a delivery datethat you cannotkeep.6o
    • 6z6z6z pLAc t NG A N o R D E R Opening Payment o r.t6z Discou nts o-6z6z Delivery Methods delivery of o63 Packing63 Closing tn -fi Ac KNowlE D G T N c A N o R D E R63 ADVTc EoF D E s P A T c H6465666768697o71 DEL AYS tN D E LTV E R Y71 REF UST NC A N OR D E R 71 Out of stockj 2 B a dre p u tati on7 2 U n fa v o u rablterms e7 2 S i z e f o rder o731475 Pointsto remember
    • o P L AC IN GAN OR D E R D i scorrrrtsTo Ordersareusually written on a companys Confirmthe agreeddiscounts. official order form >seepage65 for an example - Wewould like to thank youfor the 3o% which has a date and a reference number that tradediscountand to% quantity discount shouldbe quotedin any correspondence you allowedus. referringto the order.If the orderis - Finally,wewould liketo confi.rm that the telephoned,it should be confirmed in writing, z5%trade discount is quite satisfactory. and an order form should always be - .. . and we wiII certainly take advantageof accompaniedbyeitheracoMpLlMENrs sLrp thecashdiscountsyouofreredforprompt oracovxRlNcLErrER.Acoveringletteris settlement. preferable as it allows you the opportunity to - Although we anticipated a higher trade make any necessary points and confirm the discountthan ry%,we wiIIplacean initial termsthat havebeenagreed. orderandhopethatthediscount canbe The guide below is for an outline of a reviewed the nearfuture. in covering letter. You may not want to make all the points listed,but look throughthe guideto Deliver v seewhat couldbe mentioned. Confirm the delivery dates. - Itis essentialthatthe goods delivered are Operr i ng beforethe beginningof November, timefor in Make it clearthat there is an order the Christmas period. sales accompanying the letter. - Delivery beforez8 Februaryis afirm - Pleasefind enclosed OrderNo.a45ztfor z5 our conditionof thisorder,and we reserve the Clearsoundtransistor receivers. right to refuse goodsdelivered after that time. - Theenclosed order (No.nt54) isJor 5o packets - Please conf.rm that you can completethe of e4 copierpaper. work beforethe end of March, as the opentng - Thankyouforyour reply of 4 May regarding of the store isplannedfor earlyApril. our email about the mobilephones. Enclosed you willfind our oficial order(No. 56t)for ... a Mpthorlr of d e I ivt,r v - I would like to place a trial orderfor the Letherinematerialwe dtscussed the trade at Many companies useronwARDrNG AcENTS showlastmonth.Please find enclosed. . . Dseepage who are specialists packing r99 in and handling the documentation to sn r p p.ry rrrr.. t goods. Nevertheless, ensureprompt and safe to delivery it is a goodideato advisethe company ConfirmtherxRMSoF pAyMENr. onhowyouwantthegoodspackedandsent. - As agreedyouwill draw on us at 3o days,D/A, This meansthat if the consignmentarrives with the documents beingsentto our bank, Iate,or in a damagedstate,your letter is TheNational MercantileBank ... evidence the instructionsyou gave. of - Wewould liketo confirm that payment is to - ... and pleaseremember that only airfreight be made by irrevocable letteroJcredit,which wiII ensure prompt delivery. wehavealreadyappliedtothe bankfor. - Please sendthegoodsbyexpressJreightaswe - Oncewe have received your advice,we wiII needthem urgently. senda bank draft to . . . - Weadvisedelivery by road to avoid constant - ... and we agreedthatpaymentswould be handling of thisfragile consignment. madeagainstquarterlystatements . .. - Could you pleaseship by scheduledfreighter to avoid any unnecessary delays?6z
    • P acking A Dv rc E F DE s P A T c H o 3 q 5Advise your supplier how you want the goods When the supplier has made up the order andpacked. Note,in the first example, that crates arrangedshipment,the customeris informedare often marked with a sign - a diamond, a by means of an advicenote. This may be a formtarget,asquare, alion, etc.-that canbe page To,letter,fax,oremail. seerecognizedbythesupplierand customer. Although an advicenote canbe sentbyfax- Eachpieceof crockeryis to be individually or email, the customer may need to present wrapped in thickpaper,packedin straw,and original documents (e.g. rwvorc n, bill of shippedinwoodencratesmarkedOand lading,rmsunANcE cERrrFrcarr)tocollect numbered to 6. t the consignment. course Of thesecannot be- Thecarpetsshould be wrapped,and the faxed or sent by email. packaging reinforced atbothendstoavoid - Yourorder,No.o/t54/r,is already onboard 5 wear. the SS Mitsu Maru, sailingfrom Kobeon t6- Themachines must be weIIgreasedwithall May and arriving Tilbury,London, n June. on movable parts secured beforebeingloaded Theshippingdocuments havebeen into crates,which shouldbeclearlymarked forwarded to your bank in Londonfor with your castlelogofor easyidentification. colledion. - Wearepleased advise to you that the watches youordered-No.88t5t/24-willbe onflightCfosing s,a,t65leavingZurichat n.oo,9 August,- Wehopethat this wiII be thefirst of many arrivingManchester ry.oo.Pleasefind ordersweplacewithyou. enclosed waybill oc t5t6t/j and copies air of- WewiIIplacefurtherordersif this one is invoice,an3fi,whichyouwillneedfor completedtoour satisfadion. collection.- If our sales targetsare met,we shall be - Yourorder,No.vt /t5t/c, is beingsentexpress placingfurther ordersin the nearfuture. rail-freightand can be collectedafter o9.oo- I lookJorwardtoreceiving your advice/ tomorrow. Enclosed consignment is note No. / shipment/ acknowledgementconfirmation. n6V5j,which shouldbepresented on collection.You shouldcontactus immediatelv i fanyprobl emsari se Thankyouforyou rA c K N o w L ED GIN G A N o R DE R order,and we hopewe can be offurtherAs soonas a supplierreceives order,it an service inthefuture.shouldbe acknowledged. This canbe donebyIetter,or by email for speed seepage66.Thefollowing examplescan be usedin both emailsand letters.- Thankyouforyour order No. g8e whichwe receivedtoday.We now dealingwithit are and you may expect deliverywithin the next threeweeks.- Yourorder No.67tz/t is now beingprocessed and shouldbe ready despatch the end for by of this week.- Wearepleasedto inform you that we have already madeup your order,N o.99 ot / t / 5, for 5oo bed-Iinen packets, and are now making arrangements shipment to Rotterdam, for 6t
    • Io Placing order: an Head OfhccE cwering lcttcro , F. Lynch & Eo. Ltd N essonH ouse F. Lynch Co. & have N ew el l S treet decided place to an B ;.mi nghan! orderwith Satex5.p.A. 8J 3E L >seeprevious corespondence on Tel ephone, +44 @)z t 216 657t pages and58andare 45 Fax:+44 (o)21236 8592 sending covering a letter Lm,rrl p<rane@l yn c h o,uk c with the order form. r./.vwlynch Conl Your ref D/7439 Ourref: OrderDR4316 9 March 20-o SatexS.p.Ag Via di Pietra Papaoq 00146RomaE!! ITAIYxul Attn. Sig.D. Causio DearSig.Causio Pleasefind enclosedour official order,No.DR4316. Forthis order,we acceptthe 15% trade discount you offered,and the terms of payment (sight draft, CAD),but hope you are willing to reviewthese terms if we decideto order again. Would you pleasesendthe shipping documents and your sight draft to Northminster Bank (City Branch),Deal Street,Birmingham 83 1SQ. If you do not have any of the items we have ordered currently in stock, pleasedo not send alternatives. We would appreciatedeliverywithinthe next sixweeks, andlook forward to your acknowledgement. Yourssincerely Peter Cranp PeterCrane ChiefBuyer Enc.OrderNo.DR4316E1 Onwhose termsare lf anyof the sweaters Howsoondo theyg F.Lynch Co.paying? & theyhave ordered are wantthe sweaters?I3 out of stock,wouldc/ theyaccept alternatives?64
    • OrdcrfiCIfilN o CL HeadOffice o F, Lynch & Eo. Ltd NessonHouse Thisis F. Lynch Co.l orderform. & NewellStreet Birmingham 833Er Telephone: @lzt 46 657l +44 Fax:+44 (o)zr2368592 Email:pcrane@lynch.co.uk www lynch com Orderno. DR4315 SatexS.p.A Via di Pietra Papa 00146Roma m ITATY Authorized x 0, 3 T ?eter (ta*tp o ID o. o Quantlty Itemdexrlption Cat.No. Prkc(ClF tondon) e 3 50 V-neck:30 red + 20 blue R432 f30.80 each 30 Roll neck 15black + 15blue Nr54 f20.40 each 30 green+ 15beige Crewneck:15 N157 f23.00 each 40 Crew neck:pattern R541 f,25.60 each Note: Subjectto 5%quantity discount comm€nts L5%TradeDisc.allowed. Pytnt. C/D Del.6weeks Dete 9 March 20-I In th e e m ailon Whichreference Bywhen shouldthe rO g page45,MrCrane the identifies order be delivered? o suggested that he sweaters? lf F.Lynch& Co.have o might place ordersfor = Whatsortof fu rthercorrespondence over5oosweaters, discounts been have with Satexon this butthis orderisfor agreed? order,what reference onlyr5o.Whydoyou would they use? think it is relatively sma l l ? 6S
    • Adnowlcdging en ordcr Satex now prepare will tlrCranesorder, in but the meantimethey enrailhimto let him lnow that the orderhas beenreceived. DearMr Crane=a you ordelwhich arenowmaking Wehave theitems stock all inE Thank fortheabove we up.a and you willadvise about shipment thenext days. in few!BEa DanieleCausioE. SalesDirector Satex S.p.A. Viadi Pietra Papa, 00146 Roma +39 Telefono: 06 76991 0 +39 Telefax: 06 681 5473 Email:causiod@satex.co. it6
    • Advice despatch of o e o This email message I confirms that Satex have sent order.When the Mr Crane receives email, the the Northminster Bank w i l li ssueaorsrr aurH onrrv, hi ch w allows themto debit F.Lynch Co.s & account. Theshi ppi ng docume nt s Your Order 4316 DR willthenbesent to F.Lynch Co., that the & so goods becollected, can 5Dear Mr Crane Remember,this a was crr transaction where tn xt{e are pleasedto tell you that the aboveorder has been shippedon the SS Marconissa and paid the supplier cost, l,sfrouldreachyou in the next 10 days. insurance, freight, and 3 E o andon a documents oilrleanwhile, bank has forwarded relevantdocumentsand sightdraftfor t3,092.80, our the against payment basis. 3uhich includes agreedtradeand quantitydiscounts, the Northminster the to Bank (City E.Branch) Birmingham.4/eare sureyou will be very satisfied and lookfonrvard your next with the consignment toorder.Bestwishes IDaniele CausioSalesDirectorSatexS.p.A.Via di PietraPapa,00146Roma +39Telefono: 06 769910Telefax: +39 06 6815473Email:causiod@satex.co.it 6t
    • 6 o Placing order anTo Th i s ailandhene x t em t onefollowon from previous correspondence >seepates44 and56. There threeoarties are involved: the manufacturers, Glaston John Merton Potteries;the buying agents, Sanders Lowe; & andtheirprincipals in Canada, MacKenzie Bros. Here, Lowe writing Ms is5 on behalfof her p ri nc ipals and forwardi their order. ng G E Notice instructions the o 1432 o shegives notice and that E shehasalready phoned E G Glaston Potteries to DearMr Merton x termsof payment,lll agree whichwerenot Pleasefind attachedan order (R1432)from our principals, MacKenzieBros Ltd, mentioned theirletter in 1-5 WhaleDrive, Dawson, Ontario, Canada. on page 56. They haveaskedus to instructyou that the 60 sets of crockeryorderedshouldbe packed in 6 crates,10 sets per crate,with each pieceindividually wrapped,and the cratesmarked clearlywith their name,the words fragileand crock , and numbered1-6. They haveagreedto pay by letterof credit,which we discussedon the phonelastweek,and they would likedeliverybeforethe end of this month,which shouldbe no problemas thereare regularsailingsfrom Liverpool. lf the coloursthey havechosenare not in stock,they will acceptan alternativeprovidedthe designsare those stipulated the order. on Pleasesend any furthercorrespondence relatingto shipmentor paymentdirectto MacKenzie Bros,and let us havea copyof the commercialinvoicewhen it is made up. Manythanks LindaLowe Whatinstructions 3 Whyshould there 5 Sanders&Lowehave 6 Wh i c h w o r d s i n t h e easilydamaged o havebeengiven beno problem for completedtheirjob, e m a i l h a v ea s i m i l a r or broken Cl aboutpacking? GlastonPotteriesto whichwastofinda meaning o the t d stated=orz Whatmethod of deliver withinfour supplier. who must So following? e completed payment been has weeks? GlastonPotteries a cupS,saucers, arranged? 4 Willsubstitutes be writetonow? plates,etc. b large,wooden acceptableGlaston if boxes Potteries out of are68 stock anyitems? of
    • Adviceof despatch o e o Glaston Potterieshave 5 made uptheMacK en zie order nowadvise and themofdespatch. MacKenzie will Bros already have opened a letterof credit>see page at theirbank, r55 The anadi anni on C U TrustBank, favour in of Glaston Potteries.The C anadi an bankw i lno w l wait untilthey haveDear Mr MacKenzie confirmation of shipment fromtheir tn-he aboveorder has now been completedand sent to LiverpoolDocks,where it is awaiting x q, in agents England,@ding on to the SS Manitoba,whichsailsfor Dawson, Canadaon 16 Julyarriving July. 30 Burnley Bank, City and 3 It,$lhen havethe necessarydocumentswe will transferthem to BurnleyCity Bank,your we willthentransfer the o omnks agentshere,and they will forwardthem to the CanadianUnionTrustBank. money that Glaston so 3 t Potteries bepaid. canrrfehavetaken particularcareto see that the goods havebeen packedas per yournnstructions: six crateshavebeen markedwith your name,and numbered1-6. Each crate themeasures x 4ft x 3ft and weighs5 cwt. 6ftlrllbmanagedto get all itemsfrom stockwith the exception Cat. No. Gl 6, which is only ofarrailable red, but we includedit in the consignment it was of the designyou askedfor. in as pleasecontactus. Thankyou very much for your order.llfyou need any further information,We lookforwardto hearingfrom you again soon.John MertonSalesManagerGl otteriesLtdCl B ur nley B 101 R Q Brer +44 (0)128246125Fax.+44 (0)128263182Email j. merton@glaston.co.uk : Ho w willt he 3 Whatwill happento 4 WhatdidGlaston 5 Whichwords in the rO tr consignment sent? be thedocuments once Potteries about do e m a i l h a v ea s i m i l a r o 6 GlastonPotteries the itemtheycould meaningto the f. Whenisit dueto o receive them? notsupply? following? = in arrive Canada? a essential b forwarded c in accordance with d apart from 69
    • oD EL A YSIN D E T IVE R Y CL oIf goodsareheld up either beforeor after Youmay be out of stockofthe productordered,they are sent,you must keepyour customer or you may no longer make it. Note that, ininformed.Statewhat has happened, how it either case,you havean opportunityto sell anhappened, and what you are doing to put alternative product seepage48,butthings right In thesecases speedof email the remembernot to criticizethe productyou canis very useful.If email is not available, then fax no longer supply.or cableshouldbe usedasthe sooneryour - Wearesorryto saythat we arecompletely outcustomeris informed,the soonerthey cantake of stock thisitem and itwillbe sixweeks ofaction.It is a goodideato keepcopiesof any beforeweget our next delivery, please butmessages sendabout delays. you contact then. us- I wassurprised sorryto hearthat your and - Weno longermanufacturethisproduct as consignment (Order n45) had not No. demandoverthepastfewyearshasdeclined. 5 reached you.On enquiry Ifound that it had - Thankyoufor your order heavy-duty for beendelayedby a localdisputeon the cargo industrialoveralls. Unfortunatelywe have vessel Hamburg on which it had been SS run out ofthe strengthened denim styleyou Ioaded.I now trying to get thegoods am askedfor. you particularlyspecifedthis As transferred the SS to Samoa, which is material, will not offera substitute, we but scheduled sailfor Yokohama to beforethe end will inform you immediatelywe receive of next week. shall keep I you informed. delivery a newconsignment.This oJ willbe- I amwriting totellyouthat unfortunately within the next two months. therewill be a three-week delayin delivery. - Wereceived your orderfor ACNdynamos Thisis due to afire at our Greenford works today,but regretthat due to a strikeat the which destroyed mostoJthe machinery.Your ACN factory we are unabletofulfl it at orderhasbeentransferred our Slough to present. areawarethat other modelswill We factory and wiII beprocessed thereassoonas not suityour requirements, hopethat the but possible.apologize this delay, I for which is dispute wiII besettledsoonand that wewill due to circumstances beyondour control. beableto supplyyou. Wewill keep you- Weregretto inform you that there will be a informedof developments. delayin gettingyour consignment you to Thisis due to the cut in supplies from Gara, where, you may be aware, as civil war broke out last week. havecontacted possible We a supplierin Lagosand he wiII let us know if he can help us.If you wish to cancel your order, pleaselet us know as soonaspossible. However,I think y ou willf nd most manufacturers experiencing same are the dtficulties at present.R EF U SIN GAN OR D ERThereare a number of reasons a company forto refusean order,and someof the mostcommon are given below.Whateveryourreason, you must be polite:the words rejectandrefusehave a very negative tone, thereforeit is better to usedeclineor turn down instead. 71
    • 5 o 8 a d re p u ta ti o n or payment:!t - Weonly acceptpayment by letter of credit.o The customer may have a bad reputation - Weneverofferquarterlytermson initial for settling their accounts in the caseof a or, orders, evento customers who canprovide retailerof, say, electricalor mechanical references. However,wemight considerthis products,may have offered a poor after-sales sort oJcreditoncewe haveestablished a servicewhich could in turn affect a trading relationship. manufacturers or suppliersreputation. In - Our companyrelies quicksales,low on profi.ts, it thesecases, is betterto indicateterms on and afast turnover, and thereforewecannot which you would be prepared to acceptthe offer Iong-term creditfacilities. order,or, as in the last two examplesbelow, find a diplomatic way of sayingno. S i re of order - Wewould only beprepared to supply on a5 cashbasis. The quantity requiredmight be too large: - Weonly supplyon payment againstpro - Wearea small companyand couldnot forma invoice. possiblyhandlean orderfor zo,ooo units. - As thereis heavydemandat present, have we - Unfortunately, factory doesnot have our veryfew of theseproducts in stockand are facilities to turn out 3o,ooo units a week. servingon a rota basis.Itis extremelyunlikely The quantity requiredmight be too small: that we wiII be ableto deliverwithin the next - Weonly supplyordersforballpointpensby fourmonths. the gross,and thereforesuggest you try a - As our plant is closing the summer for wholesaler rather than a manufadurer. vacationwe would not beableto processyour - The shirtswe manufacture are sold by the orderfor the dateyou havegiven.Therefore, dozenin one colour. regretthat we neverseII I regretfully,we haveto declineit. individualgarments. - I am sorryto saythat we must turn down - Ourfactoryonly sells material in 3o-metre your orderas we haveJullorderbooksat rollswhich cannotbecut uo. presentand cannotgive a definitedateJor delivery. U n fa v o u ra b l e te rn rs The suppliermay not like the terms the customerhas askedfor, either for delivery: - Deliverycannotpossiblybeguaranteed wtthinthe time given in your letter. - Two months must be allowedfor deliveryas we are dependent our suppliersforraw on materials. or discount: - Itwould be uneconomicalforusto ofrerour produds at the discountsyou suggest we as workon afast turnoverand lowprofit margins. - Theusualtradediscountist5o/o this in country which is5%Iowerthan thefigure mentionedin your letter. - Thediscount you askedJor isfar more than we ofer any of our customers.72
    • in Delay delivery o CL o P a n t o n M an u fa ctu r in g L td P a n t o nW or ks I Ho u n slo w M id cie se x ] r w6 za o* FENTt r N r E L EP Ho N r + 4 4 @ ) zo 8 3 5 3cr z5 F A cs I M I r E + 4 4 @ ) zo 8 3 5 36 7 8 3 et " r a r r d p an to n @ p a n m a n co .u k 8 October 20- MrH.Majid Majid Enterprises 5 Grant Road Bombay m x !, INDIA 3 g o o DearMrMajid o I am writing to you concerning your order,No. CU1154/d,which you placed four weeks ago.At that time we had expectedto be ableto complete the order well within the delivery date which we gaveyou of 18June,but since then we have heard that our main supplier of chrome has gone bankrupt. trtwill be necessaryto flnd an alternative supplier who can fulf.I all the outstanding contractswe have to complete.As you will appreciatethis will take some time. but we are confi.dentthat we should be able to deliver consignments to our customersby the middle of next month. The units themselves havebeen assembled and only needcompleting. We regret this unfortunate situation over which we had no control, and apologizefor the inconvenience caused. will understand if you wish to We cancelthe order,but stressthat we are confident that we will be able to complete delivery by the middle of next month. Please us know your decisionas soonas possible. let Thankyou for your consideration. Yourssincerely D. Pantow D.Panton Managing Director R eg,s i r i : l o Er g and e 266.cWhy havePanton Whendotheynow Whatisthedecision with reference toManufacturing not expect order be the to referred in the last to unable payones tocompletedthe order? completed? paragraph? debts 5How do they intend CanMajidEnterprises Which words the in certainto overcomethe cancel order the if letterhave similar a put togetherproblem? e trouble theywantto? m e a ni ng the to t following? understanding 73
    • 5 Refuringan order! !, :]ETJ-XJo !-l se nlo g l X h G g t ur0 F I ttu lflootions. fl A ri a t - i 10 - o B r u E= = - = = ro... I Ericvan Gellen _I Order 14449 HU Attn: Eric Van Gellen- E o Thank you for your order,No. HU 14449,which we receivedtoday.Unfortunately, cannot weg offerthe 35% tradediscountyou askedfor.25o/o our maximumdiscount,evenon large isr E orders,as our pricesare extremely Therefore, this instance,I regretthat we competitive. in Gt! x haveto turn down your order. DenisYork SP Wholesalers plc KingsLynn,Norfolk PE3O 4SW Tel; +44 (0)1553 60841 Fax:+44 (0)I 553 60923 Email:d.york@spw.co.uk c Whydoes MrYork I Howdoes he I What isthe refuse order? the generalize his implication in this of refusal? instancein the last sentence?74
    • +t Proformag n n I N V OIC E S A N D S TA TE M E N TS lnvoiceso n n Proforma invoicesE Statements ofaccount 78 SETTLEMENOFACCOUNTS T 78 Methods payment:trade of within the UK 78 Methods paymenttradeoutside UK of thettr 79 Advice payment ofo- EXAM PT T S 8o 8r Acknowledgement payment Invoice I of 8z Invoice 2 83 Strtement lccounl of 8+ Advice payment of I 85 Advice payment of 2 86 D E L A Y E D A Y M E N T P 86 Asking moretime to pay for 86 Replying requests moretime to for 87 R E q U E S T S O RP A Y M E N T F 8t Firstrequest 8t Second request 88 Third (fi request naldemand) t r Afr Pt( t 8g Requcrt moretime for 9o Agteeing mo.elame to 91 Requert rn ertenrion for 92 Oflerof a compromite 93 tirlt requerl 94 Rcply 6rrt requcrl to 95 Sccond requelt 96 Rcply rc(ondrequerl to 97 Third rcquert (llnaldemand) 98 Pointsto remember
    • packedand awaiting despatch. soonaswe As ! !JI NVO I CE5 AN D STATEM ENT S receive your cheque will sendthegoods we 3 o which shouldthen reach you within aJew t days.INvorcrs areoneof the main documents - Wearesendingthe enclosed proforma (Nousedin trading.They are not only requests for n gt9t)for f,j,96o gross,for consignment thepayment but alsorecordsof transactions oJchairs you orderedon approval. would Wewhich give the buyer and sellerinformation appreciate iJyou couldreturn any unsold itabout what has beenbought or sold,the terms chairsby the end of May asagreed.ofthe sale,and detailsofthe transaction. An - Proforma invoice, pt77t5,isfor your order, No.invoicemay be accompanied a short by No 652u74,in confirmationof our quotation.coveringletter or email offering additional Thetotal of f, t5,j5t includescost,insurance,information the customermight need. andfreight.- Please 6 fnd enclosed InvoiceNo.ary5tfor our tlzg.+l Theplugsyou orderedhavealready beendespatched you, c/r, andyou should to receive them within the nextfew days Ratherthan requiring immediate payment of (No.- Theenclosedinvoice ou67)for t74 6o is invoices, suppliersmay offer credit seepages for z Layeazee chairsat t 54o.ooeachless y% rt8-r35 in the form of open accountfacilities trade discount. lookforward to receiving We for an agreedperiodof time, usually a month your remittanceand wiII then sendthe chairs but sometimesa quarter (threemonths).At the c/F. endof the peri oda sTA TE ME N T A ccouNT oF- OurInvoice, o.r n y 5n 6Jor €6,78o.oo net is N is sentto the customer, giving detailsof all the attached Welookforward to receiving your transactionsbetweenthe buyer and selierfor cheque,from whichyou may deduct3%cash that period.The statementincludesthe discountif payment is madewithin seven BALANcE onthe account,which brought is days. forward from the previousperiodand listed as A C C OU N T R E N D E R E D . IN V Oi C C S N d P TS IT A NorEs seepagerr areadded,while payments and cnrplr NorES seepagerrlA pno ronua rNVorcEis onewith the words are deducted.proformalyped or stampedon it, and is used: Statements accountrarelyhaveletters of- If the customerhas to pre-pay(i.e. pay for with them unlessthere is a particularpoint goodsbeforereceivingthem),they pay that the supplierwants to make,e.g. that the againstthe pro forma is account ovERDUE, that somespecial or- If the customerwants to make surea concession available prompt payment, is for quotationwill not be changed, pro- the but a complimentsslip may be attached forma will sayexactlywhat and howthey Notethe expression ar (e.g. at jt ns as will be charged March),whichmeansup to this date.- If goodsare sent on approval, saleor on - I enclose your statementasat 3t luly. May I return, or on consignmentto an agent who remindyou that your |une statementis still will sellthem on behalf of the principal outstanding, and askyou to settleassoonas- As a customsdocument possible?A coveringletter may accompany pro forma a - Pleasefnd enclosedyour statementoJInvoIce. accountas at jt May thisyear.If the balance- Theenclosed forma No.tt64for f.8,25j.76 Pro within the next seven of ft6t is cleared days, isfor your OrderNo.ct534, which is now you can deducta 3%cashdiscount. 77
    • c SE T T T EME N T A C C OU N TS OF letter ofcreditaE A l rrrrn or cR E D rr(l f c) i sadocumentac Me th o d r o f p a y n re n t:tra d e w i thi n issuedby a bank on a customers request, ordering an amount of money to be paid to a th e U K supplier. Paymentsby letter of credit can be Here is a list of methods of payment which can made within the UK,but this method is be used in trade within the UK. more common in overseas transactions >seePage 79. Bankdraft In the case a sarvr pnarr,the customer of Cash delivery on buys a chequefrom the bank for the amount CesH olu DELTvERy (coo) is a service ofiered he or shewants to pay and sendsit to the bythe PostOffice.Theywill delivergoodsand supplier. Banksusually require two of their acceptpayment onbehalf of the supplier.6 directorssignatures drafts,and make a on PostOfficeGiro small charge. The PostOfficeGiro system allows a customer Banktransfer to senda payment to a supplier,whetherthey A saNx TRANsTER when a bank moves is have a PostOfficeGiro account or not. money by orderfrom one accountto another. Postal order Billofexchange Posrar oRDERs be boughtfromthe Post can (n In slrl oF EXCHANGT /r ) transactions the Office,usually to pay small amounts, and sent supplier draws a bill on the customer.The bill to the supplier direct.They can either be statesthat the customer will pay the supplier cRossED,in which case money canonly be the an amount within a statedtime, e.g. thirty paid into the suppliersaccount, Ieft openfor or days.The bill is sent direct to the customer or the supplierto cash. paid through a bank.If the bill is a srcnr pnerr, the customerwill pay immediately (i.e. Methodr of payment; trade outri de onsightor presentation). the bill is arERM If the U K DRAFrthe customersigns (accepts)the bill beforethe goodsare sent and payslater. Banktransfer pages See 47-154for moreon bill of exchange The customer orders a bank to transfer money transactions. to the suppliersaccount. telegraphed, If this is known asa rE LEGRAeHTc TRANsFER (rr). The Cheque Societyfor Worldwide Interbank Financial The customermust havea CURRE NT Communications(swlrr) offersa twenty- AccouNT,or certaintypesof savrncs four-hour international bank transfer service. eccourvr, to pay by cheque >seepagesr38-r39. Businesses EuropeanUnion(ru) countries in Chequescan take three working daysto clear often usethe swrFr system.Paymentsare through the commercialbanks,and can be subjectto r u directives, transfershaveto e.g. open,to pay cash, closed(crossed), be paid or to be made within six days. into an account. Billofexchange Credittransfer The procedureis the same as that for trade in In th e c a s e f c R E D rrrR AN SrE R S ,the o the UK, but shipping documents usually customerfills out a bank crno slip and hands accompanybills when the bank acts as an it in to a bank with a cheque.The bank then intermediarv in international transactions. transfers the money to the supplier. Debit/ creditcardpayment Dnnrr andcnEDrrcARD payments be made can either direct on the phone,or on the Internet.It
    • Cheque former will pay the amount stated,either on ! qlIt is possible pay an overseas to supplierby demand or after a certain date In effect,a 3 ocheque, it takesa long time beforethey but promissorynote is an rov (I oweyou). =get their money.In a transactionbetweenbusinesses Germanyand the UK,for inexample, suppliercouldwait up to three theweeksfor payment. Correspondence advisingpayment,Documentary credit particularly in the UK,tends to be short andWhen a letter of credit is accompanied by routlne.shipping documentsit is calleda - Wehavepleesurein enclosing postal ourD o c u M xN T A n Y n r p rr. T h emo neyi s c order/ cheque bank draftJor f- / increditedto the suppliersaccountas soonas payment of your statementInvoiceNo.-confirmationof shipment is made. dated ... - I haveinstructedmy bank today to transfer 6 Seepages t55-166for moreon documentarycredittransactions ft,t6t.ooto your account paymentoJ in your 31Maystatement.International bankdraft - Wehavedrawn a cheque fz67.ooin forAn rN rrn re rro N Ar B AN KD R A rr i s a cheque payment of your InvoiceNo.tzjt datedzwhich a bank draws on itself and sellsto the August Thiscan bepaid into your accountorcustomer, who then sendsit to their supplier. cashed any PostOfi.ce. atThe suppliers bank shouldusuallyhaveeither Correspondence confirming payment in tradean accountor an agreementwith the transactionsoutsidethe UK maybe morecustomers bank complicatedif you want to make specificInternationa I moneyorder points.I N rn n rrl a rIo N AL N Ey o R D ER S tvros) Mo (l can - Thankyoufor your prompt delivery. Pleasebe bought at most banksinthe UK and are find enclosed draJtfor t4841 drawn on ourpaid for in sterling or dollars.Thebank fllls out EastlandCityBank,Sommeryille. Could youthe orderfor the customerthen, for a small please acknowle e receipt? dgcharge, handsthe IMo over,and the buyer - Wewouldliketo informyouthatwe havesendsit to the supplier.Iuos can be either arrangedfora credittransferthrough ourcashed creditedto the suppliersaccount. or bank,the Hammergsbank,Berg en,Jor t 3,tzo in payment of InvoiceNo.nt64t. Could youlnternationalPostOfficeGiro conrtrmthe transferhasbeenmadeassoonPaymentby InternationalPostOfficeGiro can as the correspondent bank advisesyou?be made when either the customeror supplier, - Wehave pleasure enclosing bankdrafi in ouror both, do not havebank accounts. order Anfor the amount to be paid is fllled out at a Post for f,5,t4t.5j payment on Proforma Invoice as No.55t2. Please adviseus when the goodswillOffice,which forwards it to the Giro Centre The beshippedand are likelyto reachBarcelona.Giro Centrewill sendthe amount to a Post - Youwill bepleased hearthat we have toOfficein the suppliers country,where the accepted your bill and now havethesupplierwill receivea postalcheque. They can documents. shall collectthe consignment Wethen either cashit, or pay it into a bank assoonas it arrives Bonnandpayyour bill inaccount Girosare chargedat a flat rate. onthe dateagreed.Promissorynote - Our bank informsus that they now havetheA pnours s oRy Norx is,strictlyspeaking, not shippingdocuments, wiII betransferring anda method of payment but simply a written theproceeds our letterof creditto your ofpromisefrom a customerto a supplierthat the account. 79
    • tr gement payment Acknowled ofoEGA Correspondence acknowledging payment also tendsto be short. - Thankyoufor your draft / credittransferfor f- in payment of our statement/ invoice No.- dated... - Our bank advisedus today that your transfer oJfg,76t.oowascredited our account. to Thanky oufor p aying sopr omptly,and we hopeto hearfromyou again soon. - Wereceived your Giro slip today informing us that you hadpaid tt,tz6.oo into our account6 in settlement invoiceNo.r,4t. Thankyou of for letting us know,and we lookforward to hearingfromyou again in the nearfuture. - Thankyoufor sendingyour draftfor invoice No.tt87t sopromptly. We feel sureyou wiII be pleased with the consignment and look forward to receivingyour next order. - Wereceived advice from our bank this morning that your transfer invoice o. for N our ntt64thas beencreditedto account.We would liketo thankyou, and would bepleased to helpif you needfurtherinformation,or would liketo placeanotherorder. - Our bank informedus today that you accepted biII (No. zz5l andthe our sz documents havebeentransferred you.We to aresureyou wiII bepleased with the consignment. - TheNippon Bank in Tokushimahave told us that the proceedsofyour letter of credit have beencreditedto our account.Thankyoufor your custom, and we hopeyou wiII be in touch wtth us again.Wehavepleasure enclosing in our newsummercatalogue.to
    • Invoice1 ! !l Thisis a relatively simple -3 o ro G&RHffiectrFse*Ltd tnvorce invoice.Note the additionforValueAdded I Tax (var) and PosrAGE 35HillStreet A N D P A C K T N(G & P ) . P Seacroft The lettersrgor at the Leeds bottom mean ERRoR5 LS14 1N D AN D OM ISSION S Telephone (o)u3 64or8r +44 E xcE P TEn other i D; Facsimile (o)ttl 6$7 8z +44 words, thereisa if Emailaccounts@drelec.co.uk mistake the invoice, on No. 81951 Invoice the supplier the has To P.Gwent & Co.Ltd right to correctit by 6 askingfor moremoney 43 RingRoad orgivinga refund. ln x Leeds LS16 2BN !, 3 gYourorderNo. L57/5 lD = Date 1May20- I al o Number Description Total 40 RVA250volt plugs @55p.each t26.OO AddvATl7.5% L4.55 Addp&p t4.oo [34.55 E&OE Registered London n5662 No. vA r R eg. o.154 N 662219 8t
    • tr lnvoiee2oE Thisinvoice rather isoa morecomolicated. is lt from Claston Potteries to their Can ad ian customers, MacKenzie c,ayre,rlIBun,ey BBio,F,., T$ ;:?Tt?lrr rro Bros. would be sent lt i .- F i r l ,.- r ,r {i I I ( o) 1132 4( ) tr r , with copies and shipping [" r i r :r l - l r r ) r ff r fy r l fl i documents toThe [.] - r l .,i C :ttc tl Ltk C anad ian ionTrust Un B ankvia the Burn ley B ank.wh o re a Invoice 1096/A3 No. 20- 11July MacKenzies agentsin6 the UK.These MacKenzie BrosLtd documentsprovethat a 1-5 Whale Drive1) shiomenthasbeen.9 Dawson 0 madefrom Claston.= Potteries MacKenzie to Ontarioo Brossothat the CANADACLE C anad ian an kcan no w bl!x releasethe moneythatut MacKenzie Brossaid Your order R1432 No. they would pay in their letterof credit.There will Qu a n tity D escri pti on C at.N o i eaei r alsobe a dd ition al 35 Earthenware Rt94 @ 55.00 set 1,925.00 charges that MacKenzie 10 Wedgwood wl6l @ 47.50 set 475.00 B ros will pa yth eirba nk f or ha nd ling the 15 Bone/Tea T2l @ 23.00 set 345.00 transaction. 10 Staffordshire Red s73 @ 5260 set 526.00 It might be helpfulto CIF 3,271.00 3,271.00 refer backto enquiry, LessCost& Freight reply,order,and advice r seePa8es44,56,68, Liverpool-Dawson 3U.00 and 59. LessInsurance 292.O0 Youwill seefromthe 10%discountoff net price Disc 2,632.00 Less zo7.z v i nvoicethat c rr charges havebeendeducted Total 2,368. 80 from the grossprice.This is because underUK law the customermust be told exactlywhat they are payingfor.And in t his ca se r h asa lso cr beendeductedsothat the ro% special discount can be taken offthe net Pnce. E&O E , ,- , l.i.lhlijl :i .1., lt,l,) ljSl,llroli Which reference What doesthe 4 What charges have How haveGlaston w ould Ma cKe nzie s ign@ m eanin t he beentaken offthe Potteriesindicated Brosusewhen calculations? grossprice? they havethe right to referring this to correctthe invoiceif What isthe net total invo ice ? there is a mistake? ofthe invoice?8z
    • Statementof ! t account -3 o 5 This statement anis Furniture Ltd account ofthe transactions took that place over monthof the Telephone: (o)r528 +44 26755 TibStreet Maybetween Seymore Fax:+44@)t628 26756 Mai denhead Furniture their and Emailaccou : nts@seymore.co.u k B erkshi re customer. M€ndez. C,R. Registered r85r439r No. London s L6 5D 2 You see will that a debit var No z3r61883r UK note(o/tt 3rr) aand creditnote(c/r.r C5r7) 3i May 20- areIisted wellasthe as C.R. Mendez SA i nvoices corrected. they 6 Avda del Ej6rcito 83 There also are two E-48015Bilbao paymentswhich are ln x !, listed here cash, as 3 although word the E o Date Item Debit Credit B al ance chequecan beused also 6 in this context. ol 20- f + f L o 3 o lMay Account Rendered 270.00 I 2May Inv.18992 260.00 530.00 8May D/N 311 52.00 582.00 12May Cash 100.00 482.OO 14May Inv.18995 720.OO 7,202.OO 20May c/N c517 80.00 1,122.00 25May Cash 600.00 522.00 E.& O.E.Cash Disc.3% paidwithin7 days ifHowmuch C.R. did Whatdidtheypay 5 H o w w i l l thei rrJune rO trM€ndezoweat the d u ri n g th e o n th ? m statement ooen? obeginning ofthe Whatwasthe totaI 6 lsthereanallowance omonth? t amount their of for paymentwithinaHowmuch wasthe purchases during certaintime?error theirfavour? in May? 83
    • tr Ad vic e of o -rc Ofi rce E p Jym0nt I4 a! F, Lyneh R"EE" ttd j a- r - ) O n l oLtSr . F This lettercontinues 1,,1iile I Sireet previous correspondence F r , i :i r ngh a m r page (enquiry), zt! ,r I l i ; ee page (reply and 58 quotation), pages 54-55 i erepl .cne:+44l oJzt z 1 o6r,1 . (order), pages and 66-67 Fax +44 (o):r 236 859 : (theemail messages E-.rai r. ocrane@l yncir uk co Yi r ^.ij y nC l i ac ffr acknowledging the order advising and despatch). customer, The /ai r r : a Mr Crane F. of Lynch Co.,& !,)), OrderI44636 uses confirmation this of payment ask the to for 16lune 20-o termsof payment be to SatexS.p.A.g revised >seealsopage Via di PietraPapasr rr8.lf you lookback to 00146Roma page will 58,you see that E ITALY a! x Satex S.p.A. they saidlll wouldreviewtheterms aftera while. Notice howtheletterbegins Attn Mr D. Causio with confirmation of payment, states then the DearMr Causio present arrangement, a n dfinally ak es m t he Thankyou for being so prompt in sendingthe documentsfor our last order, nextorder subject to No.14463. haveaccepted sight bill, and the bank should sendyou an We the Mr Causio accepting the advice shortly. newterms.The Ietter is We have been dealing with you on a cashagainst documents basisfor over firm,butstillpolite. a year and would like to changeto payment by 4o-day bill of exchange, Forthis kindof corresoondence a letter documentsagainst acceptance. ismore appropriate than When we flrst contactedyou last Februaryyou told us that you would be anemail message. preparedto reconsider terms of payment oncewe had established trading a association. think that sufficienttime has elapsed us to be allowed We for the terms we haveaskedfor. If you needreferences, will be glad to we supplythem. As we are planning to send another order within the month, could you pleaseconfirm that you agreeto thesenew terms of payment? Yourssincerely Pe,ter {ta.t,a, PeterCrane ChiefBuyer84
    • Adviceof ! ol payment2 3 o t Thi semaial so l continues previous correspondence >seepage (enquiry) 44 page56(reply), page58 (order),page69 (advice of despatch), page and 8z (invoice). MacKenzie Bros the email use both to confirm payment and to make complaint a about packing the 6 >see alsopages roo-rt6, Note that MacKenzie ln x 0, Bros accept will either 3 replacements forthe g o broken crockery aor o credit note. Claston 3 c, Potterieswillclaim on =blb haveinstructed bank to arrangefor a letterof creditfor €6,158.92to be paidagainst our theirinsurance companytour pro forma invoiceNo. G1152iS. The proceedswill be creditedto you as soon as forthebreakages,Canadian Trustreceivethe documents. although theymight not getcompensation asWe usuallyask you to wrap each pieceof crockeryindividually and pack no morethan ten theyhave beensets intoa cratpto allowfor easy and safe handling. This was not donewith our last negligent their inconsignment and as a consequence therewere breakages(see attachedlist).We would like packing.eitherreplacements be includedin our nextshipment,or your creditnote. toRichardMacKenzie 8S
    • c Noticein the last exampleabovethat there o DELAYED PAYM ENT E is no reference the bankrupt customers to4 |! name,nor how much they owed.It would be unethicalto givethis sort of information. This is an areaof correspondence where you Also noticehow the debtorgeneralizes the must useyour own judgement about how situation,explaining that other suppliers confidentialthe information is.Would an open havenot beenpaidyet. systemlike email or fax be satisfactory, or Youmay be ableto pay somemoney shouldyou senda letter?Thesesituationscan oN AccouNr, i.e. pay part of what you owe. to be sensitive. This showsa willingnessto clearthe debt,and If you arewriting to a supplierto explain will gain your creditorsconfidence why you havenot clearedan account, - Wewill try to settleyour invoicewithin the rememberthat they are mainly interestedin nextfour weeks. Meanwhilethe enclosed6 whenthe accountwill be paid.So, while you chequeJor f,z,soooo ispart payment on must state why you have not paid, you must account. alsoexplain when and how you intend to pay. If you cannot offer a part payment, give as Beginthe letter with your creditorsname precisea dateof payment asyou can. (this should alwaysbe done once - Oncethe strikeis over.which shouldbe within correspondence beenestablished, it is has but the nextfew days, will beableto clearthe we essential this case: you owe someone in if balance. money,you shouldknow and usetheir name). - As soonas the insurance companysends us Refer the accountand apologize clear, to in compensation, will settlethe account. we We objectivelanguage(i.e do not useover- expectthis to be within the next two weeks elaborate languagelike P/e forgive mefor ase not settlingmy indebtedness toyou).Noticethe verbsclearand settle(an account)are used ratherthanpay. Therearethree possible ways in which you - I am sorrythat I wasnot ableto clearmy luly might reply to a requestfrom a customerfor accounl more time to settlean account: you may agree - Weregretwewereunableto senda cheque to to their request, refuseit, or suggesta settleour account the last quarter. for compromlse Explainwhy you cannot clearthe account, but Ifyou agreeto the request, short letter is a do not be dramatic all that is needed. - Thedock strikewhich hasbeengoing onfor - Thankyoufor your letterconcerning the thepast sixweeks madeit impossible has to outst andin balance y our account. g on shipour products, and asour customers have I sympathize withthe problemyou have not beenableto pay us,we havenot beenable had in clearing balance the and amwilling to clearour own suppliersaccounts yet. to extendthecreditfor another sixweeks. - A warehouse flood destroyed majority of the Wouldyou pleaseconfrm that the credit theZenithgoo components.We waiting are will besettled then? for our insurance companyto settleour claim - I wassorryto hearaboutthe dtficulties sothat we can renewour stock andpay our you havebeenexperiencing gettingin suppliers. components complete to orders,and realize - Wewerenot ableto settlethe account that without sales isdifi.cult to settle it of because the bankruptcyoJone of our main outstanding accounts. reforey our account The customers- debtwasconsiderable its The and hasbeen extended anothermonth,but I loss has made it dtfi.cultfor us to pay our will haveto insiston payment by the end suppliers of July86
    • If you refusethe request, you will needto to allowyouto clearhalf the balance, [5,t89, ! OJexplain, politely, why you are refuslng. by sendingus a sight draft,seeenclosed / n B :I o- Thankyou for your letterexplainingwhy No.898tot, clearthe outstanding and amount = you cannotclearyour lanuary statementfor by accepting enclosed the draft a / r No. f,2,t67.54.1appreciate your dfficulty, but we 898to8,drawn at 3o days WelookJorward to ourselves haveto pay our own suppliers and receivingyour acceptance confrmation. and therefore must insist paymentwithinthe on next ten days.Welookforward to receiving R E OU E S TS FOR P A Y ME N T your remittance.- With reference your letterof 6 August in to whichy ou explaine why th e outstandtn d g invoice, vn 88ryo c, hasnot beencleared, No. Neverimmediately assumeyour customers we understand problems the you havebeen haveno intention ofpaying their accountifthe 6 facing in the currentrecession. However, it balanceis overdue. Theremay be a number of wasbecause thepresenteconomic of climate reasons this: they may not havereceived for that we allowed you a two-monthperiod to your statement;they may havesent a cheque and while we would liketo ofreryou settle, which hasbeenlost;or they may havejust moretime to clearthe balance, ownour overlooked account. the Therefore, first a fnancial position makesthis impossible requestshouldtake the form of a polite Therefore, must askyou to settlethe we enquiry Tryto make the letter impersonal. accountwithin the next fortnight. Youcan do this by using the definite article,An offer of a compromise(for example e.g.theoutstandingbalanceinsteadofyourpaying part of the money)will alsoneedan outstandingbalance;using passive the voice,explanation. e.g.to becleared insteadof whichyou must- Thankyoufor writing to let us know why cle ; and modifying imperatives,e.g.should ar theMay accountis still outstanding. insteadof must.Thefirst examplewill give you Unfortunately, cannotextendthe credit we an idea ofthis style. any longer asweallowed considerable a - Weare writing concerning outstanding the d iscountfor pr o mpt p ayment.N everthele s, s Octoberaccountfor $qt 6j (copyenclosed), in viewof the dificulties you havebeen whichshouldhavebeencleared month.last having with your two major customers, we Please could you contact and let us know us arepreparedto compromise and suggest why the balance not been has paid? that you clearhalf the outstanding balance - Wethink you may haveoverlooked invoice immediatelyby sendinga chequefor No.5arytofor f,j5t 95 $eecopy)whichwas f,4,87t.oo, clearthe remainderby the and duelastmonth.Could youplease ushavea let end of next month. Welookforward to your cheque clearthe amountassoonas to remittance and conf.r mationthat the possible? payment hasalreadybeensent, If balanceof the accountwill becleared IuIy. in pleasedisregard this letter.- I wassorryto hearaboutthe strikewhichhas heldupproduction inyour plantfor thepast few weeks and understand whyyou need moretime to clearyour account. If a customerintendsto pay,they usually Nevertheless, when we allowedopenaccount answera flrst requestimmediately,offering an terms,we emphasized wason condition this apologyfor having overlooked account, the or balances werecleared promptly on duedates an explanation.But if they acknowledge your put as creditfacilities a strain on our own requestbut still do not pay,or do not answerat cashJlow situation However,becauseyourof all,then you can make a second request.As previouscustomwith us we are quite willing with flrst requests,you should includecopies 8t
    • t more Agreeingtoo E timeI Thisisa reply the to == --- ==_: previous letter. Herr DVBIndustries GmbH -= ::- -- Schubert accepts the - request asks and for payment soonas Correnstrasse z5o as D-4oooo M0nster possible. (+49)z5t-866t3 Tel: Fax:(+49)z5l-goz7r Email:schubd@dvb.co.de 20January20-6 MsD.vanBastenLo DirectorI, D.vanBastenS.A.34 Heidelberglaan2E|! Postbus80.115xul NL-3508TC Utrecht DearMsvanBasten Thank you foryour letter of 15January regarding oru November statement and Decemberinvoice No.7713. We were sorryto hear aboutthe difficulties youhavehad, andunderstand the situation. However,we would appreciateit if you could clearthe account as soon as possible,as we ourselveshave suppliersto pay. We look forvvard to hearing from you soon. Yourssincerely Diptu Schnbut DieterSchubert Director90
    • for Request an ! !, ertension 3 o L. Franksenplc Fltl re of tal es R oad ln this letterthe 5 5lreffield customerasksfor his s94E x bill ofexchangetobe for extended another Tefephcrne,44 1o7 z 47894z lax +44 lo) 742 z5tca sixty days. E mai l f ranksenl ( i r.rk co rrf 19May20- MrD.Bishkin ZenithS.A. 6 118 Haldenstrasse 3000Bern22 tn x SWITZERTAND c, 3 9 o DearMrBishkln ID I regret to inform you that I will not be able to meet my bill, No.B/E 7714, for o 35,498.00SF on 6 June. due My government has put an embargo on all machine exports to Zurimba, and consequentlywe have found ourselvesin temporary diffi.cultiesaswe hadthree major cashconsignments forthat country.However,Iam at presentdiscussingsaiesof theseconsignments withtwo large Brazilian importers,and am certainthat they will take the goods. Could you allow me a further 60 daysto clear my account,and draw a new bill on me,with interestof, say,6%addedforthe extensionof time? I would be most grateful if you could help me in this matter. Yourssincerely LeoFranJ:r,vt LeoFranksen DirectorWhatexpression Howdoes Mr Whatsolution does Which words the in a not permanent rO cdoes Franksen Mr use Franksen intendto hesuggest the to letter have similar a b large o ginstead payl of getthe moneyfor the p ro b l em? meaning the to c a quantityofgoods o (e.g. 5Whatisan embargo? cargo cannot he sell following? d prepare a bill to Z u ri mb a ? of exchange/ cheque) 9r
    • tr Ullltol.toE L,)lllllrllll r iE4 I n this ca seMr Bish ki n, t he sup plie r, sth e ha ZerritlrS.A. legalright to present the billto his b an kfo r payment,thenif it is not paid,calla lawyerto pnoresrthe bill,i.e . 23May20- oreventMr Franksen ot sno no un truc it (denying that it was Mr L.Franksen presentedfor payment). L.Franksen plc6 Thecostsofthis Princeof WalesRoad procedure paid by are Sheffield59 4EXtu the customer.However, UK the customerin this casesso. has not saidthey will not DearMr Franksen pay,but cannot pay atE BiIl No. B/E 7714G oresent. Mr Bishkin lfxul forcedMr Franksen to I was sorryto learn about the embargoyour governmenthas placedon pay,theresultmight be exportsto Zurimba and of the problemsthis has created. However,the bankruptcy, all Mr and B ishkin wou ld g et is a abovebill already allows credit for 40 days,and although I appreciateyour percentage hisof offer of an additional 6%interest on the outstanding 35,498.00SF, it is customers debtslikethe impossible for me to ailow a further 6o days credit as i myseif have other creditors.This commitments. couldbe as smallasfive per cent of the tota I I think the following solution might help us both. debt.5ohe doesnot Youneednot add intereston the presentamount,but I have enclosed new a want to forcethe bill on dr aft (B/ E773t) f or 17,7 OSF, 49.0 which is half the out standin g b alance,and yet. Mr Franksen On the will allow you 4o daysto pay it. But I expectyou to pay the remaining ot her h an d.h e ha s t7,749.ooSF bankers draft . by waited long enoughfor his money,and cannot Pleaseconfirm your acceptance signing the enclosed and sendingit by bill be expectedto wait to me with your draft by return of post. anothersixtydays, even with the interest I hope that your negotiations with the Brazilian importers have a positive offered.In replyto Mr his outcomeand trust that this setback wiII soonbe resolved. he Franksen offers a Yourssincerely compromtse. N.Bishkin (Mr) Director Enc.BiIl B/E7731 l sM r B is hk in Why does he say he Does wantthe six he Howwillhe know sympatheticto Mr cannotwait a further percentinterest that Mr Franksen has Franksens problem? sixty daysfor addedon? acceptedhis offer? payment? Whatcompromise does suggest? he92
    • Flnt requot F -3 o = 54-y9 f lvrrl&, (rrdlfl <rr uw Ti l ?phon? ++l (o)29 20 {97r! Jar: +44 (ol r9 :o 49937 Imai l : rcl i ffFhomGmJl crl (om l ogi rterrd N o (r|5151 20 November 20-R.Hughes& SonLtd2lMeadRoadSwansea 6West Glamorgan 3ST1DR I|| x !, 3 gDearRobert o |DI am writing conceming our invoice No. H931for L919.63, copy of which is a oenclosed. appearsthat this invoice has not yet been settled. ItI seefrom our recordsthat sincewe began trading you have clearedyouraccountsregular$ on the due dates.That is why I wondered if any problemshave arisen which I might be able to help you with? Please me know if I letcan be of assistance.Yours sincerelyRirllud,RichardCliffDirector 93
    • E o f.plytofi?rt E nqurtt!4 You willseefrom Mr lR. llughes Hughesreplyto Mr Cliffsletterthatthe & $olt l,Jd invoice beenpaid, had not bycheque,which n tcrd lpad, Swrnrar wasMr Hughesusual Strt G,lamorgaNl lor lrr method teh#.tone: +44 (oh t9t fil r ofpayment, but bycred tra nsfer. Mr for:9*ansea +4+ (oh7gz 591:: it lf f,nrorl r hughcr@hugonco ul Clifihadlooked hisat bankstatement, he wouldhave seen that 24th November 20-6 the money hadbeen credited. However, Mr as MrR.Cliff L o Hughes changed his HomemalcersLtd c, method payment, of he 54-59 Riverside!E should have informed Cardiff CFrlJW hissupplier banks as do E o x not always advise credit DearRichardtll transfers.Thisa good is example whyyou of I was surprised to receive your letter of 20 November in which you said you should assume not that had not receivedpayment for invoice No. H931. a customer failedto has payanaccount. I instructed my bant, The Welsh Co-operativeBank,Swansea, credit yow to Rememberthat this account in BarnleysBank,Cardiff, with the f 919.63 2nd November. on typeofcorrespondence As mybark statement showedthe moneyhadbeendebitedto my account, is besthandled letter, by I assumedthat it had been credited to your account aswell. It is possible notemailorfax. that your bank has not advised you yet. Could you please check this with Bamleys,andif there are anyproblems let me know, sothatl canmake enquiries here? Yours sincerely Wbe* u"/* Robert Hughes vrt io rg r)fr 3O94
    • J.cond r.qu6t ! t, This anexample a is of 3 -oI NGENIEROS second payment, request for butyouwill = I NDU ST RIALES see that,even this isa second though letter, 5rCostello avoids still anErrrlodc lbfctr r/n [-tooo9 trn 9cb$lrrn unfriendlytone.fcl (r 1f 913 rrrtoo tc(h. 30August 20-fer (r14f91361899o tu rtf (oImerl r <orlclloOrn8cnerot 6 llr rel 6t3t02 ESig.D.Giordianino I|OmegaS.p.A. x !,ViaAgnello 2153 3 !20121Milano oItaly 6- oDear Sig.GiordianinoWith referenceto my letter of 10August, I enclosecopy invoiceswhichmade up your lune statement,the balance of which still remainsoutstanding.Having dealt with you for sometime, we are concemedthat we haveneither receivedyour remittance nor any explanation asto why the balanceof €6,000.00has not beencleared. Please wouldyou either replywith anexplanation or send us a chequeto clear the accountwithin the next sevendays?YourssincerelyR. CortellnR.Costello(Sr)Credit ControllerEncl. 95
    • E- -. Reply secondo toE requesrG Omega 5.p.A.a Here Sig. is Giordianinos VialeMortidio5t269l-torz5Torino replyto5r Costellos Teefono (+3$-r - 598t46t I letter. Telefax (4$-l-62835r Em ai I gior and@o ga.co.it di me www.omega.it vs.rif. 613/O2 Ns.rif.SG/DA Date l September 20- SrR.Costello6 CreditController IngenierosIndustrialesSAo Barriode Ibaetas/ngg E-20009SanSebastianaE|E DearSrCostelloxt{ First let me apologizefor not having clearedour June statement or replying to your letter of 10August. However,I am surprisedthat you did not receive our circular letter informing all our suppliersthat we were moving from Milan to Turin. I have checkedour post book.and find that a letter was sent to you on June30. As you will seefrom the copy enclosed, warned suppliersthat there we might be some delay in clearing accountsand replying to correspondence asthe move would involve employing new staff who neededtime to get usedto our accountsandfiling systems. Youwill be pleasedto hear that we have now settled into our new offces and will have a fully trained staff bythe end of next month. Mdanwhile, I am enclosinga chequefor €2Q000 on account, and will senda full settlement of your June statement within the next few days. Couldyou pleasenote our new addressfor future reference? Yourssincerelv D. Qi"oril"a"tu*t"o D.Giordianino (Sig.) Accountant Enc. Bank Draft No.427322for €20.000 p I Whyhadnt Omega 2 WhathasSig. 3 Whathasheasked€ cl ear edt heir J un e C i o rd i a n i n o d o n e S rC ostel l otodoto I statement? aboutthe ensurethat letters{t outstanding account, getto him? andwhatwill hedo in the nearfuture?96
    • Thirdrequcrt ! !, DeltaComputers Ltd (finaldcmand) 3 o Bradfield Estate I Bradfield Road Wellingborough Northam ptonshire rur84xe Telephone44 @ 99 t64l / zl j /4 + t.:a TYGA/C Fax+44(o)r933 zoor6 Email Ilarj@delta.com mi www.deltacom 9 December 20- P.Theopolis SA 6 5613rd September Street GR-I0432 tn x Athens !, 3 E. o DearMr Theopolis o * Account No. TYG99014 o We wrote to you on two occasions, Octoberand 14November,concerning 21 the aboveaccount,which now has an outstanding balance of t3,54I.46 and is made up of the copyinvoicesenclosed. We have waited three months for either a reply to explain why the balance t has not been cleared,or a remittance, but have receivedneither. We are reluctant to take legal action to recoverthe amount, but you leave us no alternative. Unlesswe receiveyour remittance within the next ten days, we wiII instruct our solicitors to start proceedings. Yourssincerely , . t ll J. Mulal - J.Millar(Mrs) ChiefAccountant Enc.invoice copies qe6 Engl and r 8l 1713 v ar 24r 9 62u4Whatisenclosed How long hasthe DoDelta Comouters 4 Whatphrase used is |o cwith the letter? balanceremained plan takelegal to w hi ch a si mi l ar has t u npaid? action? meaning takelegal to 0 action? 3 5 97
    • Points remember toc 1 Invoices recordsof transactionsaswell areoE asrequests payment.An invoicemay be fora!4 accompanied a short coveringletter or by email. 2 Proforma invoicesare usedin the caseof pre-payment, when they are neededfor documentation, or to inform the customer ofthe price. 3 Statementsof account are sent monthly or quarterly, and include details of all transactions within the period. 4 There are various methods of payment6 available through banks and the PostOffice. 5 Lettersadvising and acknowledging payment tend to be short and routine,but they may be usedto proposenew terms of payment orto make complaints. 6 If you are asking for more time to pay,you should apologizefor not having clearedthe account on the due date,explain why you have not paid, and when and how you intend to clearthe balance. Remember, your creditorsare more interestedin when they will get their money than in goodexcuses. 7 Threestepsare usually taken by a supplierto recovera debt. The first is to write a polite letter which acceptsthat there may be a good reasonwhy the account has not yet beencleared. The second a more insistent is request which refers to the letter you have alreadysent,and encloses copiesofinvoices and statements. Youcan.in the second request, statethat you expectpayment or a reply within a reasonabl.e time. A final demandmust be handledwith restraint. Reviewwhat has happened,explain the balancehas beenoutstandingfor a long period,and if necessary threaten legal action if the accountis not paid within a specified period.98
    • 1 OO UNJUST IFIE D C OMP LA IN TS n lOO 1oo M AKING GE N E R A L C OMP TA IN TS Opening o 1oo lor Thelanguage complaints of Explainingtheproblem 3 1o1 101 101 Suggestingsolution a REPT YING TO LE TTE R SOF C OMP LA IN T Op e n i n g g ro l As k i n g fo rti metoi nvesti gatethecompl ai nt g, 1o2 E x p l a i n i n gthemi stake -O 1o2 S o l v i n g the probl em = toz Rejecting complaint a F+ 1o2t x AM p L E s 1 o 3 Closing C o mp l l i n t about w rong del i very (n 1o4 1o5 R e p l y compl ai ntaboul w rong del i very to C o n rp l a int about damage o, 1g)5 Reply complarntabout damage to = 1o7 108 C o mp l a i nt about badw orkmanshi p R e p l y compl ai ntabout badw orkmanshi p to o- t0 9 C o n rp l a intabotrtnon-del rvery 0,t t1o 1 I1 Reply (omplaint a bout wrong delivery to ACCOUNT IN G E R R OR S A N D A D JU S TME N TS 1r1 Debitnotes o- l-o 111 Creditr.x AMp L E s 1 1 2 notes D c b l tn o te c (n 113 114 Credit note about l ccountrng C o n rp l a int errors e+ 115 Reply complaintabout accounting to errors 3 116 Pointsto remember o = r+ tn
    • ofgoods despatched, be faxed or emailed, cantr U N J U S T IF I ED C OMP T AIN Tso but a letter shouldbe usedfor larger or moreE Beforeyou complain,make absolutelysure seriouscomplaints.Ib- your facts are right.r!T If you haveto respondto an unjustifiedtrG complaint,be polite and rememberthat tr anyonecan make a mistake.Belowaretwo Do not delay.Complainas soonasyou realizea! examplesof unjustified complaints,andthe mistakehas beenmade;delayweakens yourCLE repliesto them. Noticehow restrainedthe caseand can complicatethe matter as detailsotJ repliesare may be forgotten.Thereis no needto openby - Dear Sir apologizing the needto complain (We for I stronglyobjectto the extra charge [9.oo of regrettoinformyou...,1am sorrytohaveto write to you about . . ) asthis alsoweakensyour7 whichyou haveaddedto my statement. case.Simplybegin: WhenI sentmy cheque t z56.oo lastweek, for I thought it cleared NowIfind ... this balance. - Wewould liketo informyou... - I am writingto complain about... - DearMrAxeby - I am writing with reference OrderNo.ejz, to Wereceived your lettertoday complainingof yesterday. which we received an extra chargeof fg.oo on your May statementI think if you check statement the you willfnd that the amountduewas f,z65.oo [,256.oo not which accounts the for Emotionalterms like disguste inJuriat d, or d, e f9.oo drfference.Ihave enclosed copyof the a amazedhave placein business. can no You statement and ... express by dissatisfaction saying: - Dear Sir - Ihis is the third time this mistakehas I couldnot believe whenI readthatyour it occurred and we arefar from satisf.ed with priceshavenow beenincreased f3o.oo.To by the service you ofer. haveto pay t55.oo an articlethat was for - Unless you canfulfiI our orderseficiently in f,z5.ooonly afew monthsago is outrageous! thefuture we wiII haveto consider changing Thegovernmentisfghting inJlation. . to anothersupplier. - DearMr Richardson - Please ensure that thissort of problemdoes Thankyoufor your letter.I checked item the not arise again. you reJerred the Scriva to, Pen, catalogue No Do not be rude or personal. most cases In c14on our price-Iist. priceof the pen has The correspondence between companies takes beenincreasedfrom tz5.oo to fjo.oo, not by placebetweenemployees various in f,jo.oo, and Ithinkyouwill agree thatfor a departments. Nothing is gainedby being rude fountain penthisis not anunreasonable to the individual you are writing to You may increase considering thatthe costofour antagonizesomeonewho has probablyhad materialshasdoubledinthe pastfew nothing to do with the error and,rather than months. getting it corrected, or shecouldbecome he defensiveand diftcult to deal with. Therefore, do not usesentences like: MA KIN G GE N E R A TC OMP TA IN TS - Youmust correct your mistakeassoonas When sendinga complaint,you will needto possible. decidewhether it is appropriateto usefax or - Youmadean erroronthe statement. email,where privacycannotbe guaranteed, or - Youdont understandthetermsof discount. to write a letter.Somecomplaints, a e.g. Wetoldyou to deductdiscount from net mistake in a small payment or in the number prices, ctt prices. not
    • Usethe passiveand impersonalstructures a1 omentioned earlier seepage87. 3 E.- Themistakemust becorrected soonas as If you think you know how the mistake can be q, = possible. corrected, your supplierknow let- There - If I send o, appears bean erroron the statement. to you a debit notefor €984.oo and = CL- Thereseems besomerhisunderstanding to deductitfrom my next statement, that 9J regardingtermsof discount. Discountis shouldput the matter right.Thebestsolution -* c deductedfromnetprices, ctr prices. not would beJor me to return the wrong articles, :t o Do not usewords like/ault $tourfault,our charging you P&P. J - Rather than senda creditnoteyou couldsendfault) or blame$rouaretoblame)-these expressions rude and childish.Do not write: are six replacements, which wouldprobablybe- It is not ourfault It isprobablythefault of easier than adjustingour accounts. your despatch department. 7Instead,write: R E P TY IN G TE TTE R S C OMP TA IN T TO OF- Themistakecouldnot haveoriginatedhere, and mustbeconnected with the despatch of the goods. Acknowledgethat you havereceivedtheNever blame your own staff, and flnally, while complaint,and thank your customerforwriting the complaint rememberthat your i n fn vm i n a rrnrrsupplierwill almost certainlywant to help you - ThankyouJoryour letterof 6 Augustand correctthe mistake.Suppliers not in are informingusthat ..business irritate or confusetheir customers to - Wewould liketo thank youfor informing usbut to offerthem a service. of our accountingerrorin your letterof7 lune. - Weare replyingto your letterof rc March in whichvou told usthat ...If youthink you knowhowthe mistakewasmade,you may politely point this out to yoursupplier.Sometimes, when a mistakeoccursseveral times, you may be abieto work out why Sometimes you cannot dealwith a complaintit is happeningmorequicklythan the immediately,asthe matter needsto be lookedcompanyyou aredealingwith. into Do not leaveyour customerwaiting but- Could you teIIyour despatchdepartmentto tell them what you are doing straight away.In take special carewhen addressing this case, email or fax message an is consignments? nameand address My are appropriateasthe customerthen knows C.I. Schwartz,Bergstr. Koln.But thereis a rct immediately that you havereceived the C.Schwartz, Bergstruo Koln who alsodealsin complaint and are doing somethingabout it. electricalfttings. - Whilewe cannotgiveyou an explanationat- Could you askyour accounts departmentto present, are lookinginto theproblem and we checkmy codecarefullyinfuture?My will contactyou again shortly. accountnumberis246-642,but they have - As we aresendingout orders promptly,I think beensendingme statements coded642-246. these delaysmay beoccurringduring transit.- I think the reasonthat wrongsizes havebeen I shallget in touchwith the haulage sentto me is becauseam ordering metric I in contractors. sizes, andyouaresending sizes me measured - Wouldyou pleasereturn samples the items of inJeetand inchesI would appreciate your you aredissatisfied with, and I will sendthem Iookinainto this. to ourfactory in Dfisseldorffortests.
    • - Wehaveclosely compared articles the you tr !, returnedwith our samples and canseeno E If the complaint is justifled,explain how the differencebetweenthem Therefore, this in tTI mistakeoccurred but do not blame your stafi. case are not willing eitherto substitutethe we o! Youemployedthem, soyou areresponsible for articles to ofer a credit. or tr a! their actions. - Ourfactory hasnow inspected unit you the - Themistakewasdue to afault in one of our returnedlast week, and they inform us that.= lE machines, which has now beencorrected. the circuitswereoverloadedWecan repair CL E - Thereappears havebeensomeconfusionin to the machine, it wiII be necessary charge but to oIJ our addressingsystem, this hasbeen but you as incorrectuseofthe unit is not covered sortedout. by our guarantee. - It is unusualfor this type oJerrorto arise, but the oroblemhas now beendealt with7 It is usefulwhen closingyour letter to mention that the mistake,error,or fault is an exception, Having acknowledged your responsibilityand and it either rarely or neverhappens. You explainedwhat went wrong, you shouldput should also,of course, apologize the for mattersright as soonaspossible, and tell your inconvenience your customerexperienced. customerthat you are doing so. - In closingwe would liketo apologize the for - Wehavenow checked accounts our andfnd inconvenience, also and point out that this that we havebeensending you the wrong type offault rarelyoccurs the Omegazooo. in statement to a confusion names due in and - Finally,may wesaythat this wasan addresses.The database been has adjusted exceptional mistakeand is unlikelyto occur and thereshouldbeno moredificulties again.Please accept apologies the our Jor Please contactus again if a similar situation tnconvenlence. arises, thankyou againforpointingout and - Replacements thefaulty articles on for are the error. their way to you, andyou shouldreceive them - Thepaintwork on the bodyof the carsbecame tomorrow.Wearesurethat you will be discoloured because a chemical of imbalance satisfied with them and there will be no in thepaint usedin sprayingthe vehicles. We repetitionof thefaults. Thankyou for your havealreadycontacted own suppliers our and patienceinthis matter,and welookforward are waitingJor their reply. Meanwhilewe are to hearingfromyou again. taking thesemodelsout of productionand calling in all thosethat havebeensupplied. - Thefabricyou complained about hasnow beenwithdrawn.The fault wasin the weaveoJ the cloth,whichwas to a programming due errorinthe weaving machines.This now has beencorrected and replacementfabric bewill sentto you. if you think the complaint is unjustified,you can be f,rm but polite ln your answer.But even if you deny responsibility, you shouldalways try to give an explanationof the problem.
    • Complaintabout al o wrongdelivery 3 ! !l Thereply thisemail to = message >pagero4,will 5 DI why explain complaints 5 4 should carefully be l, writtenandMr Hughes -* tr 6 should assume not that 3 Mr Cliffisresponsiblefor o = the mistake.The 6 companies concerned here have dealtregularly with oneanother, an so emai messagequit e l isDear Richard appropriate,thisis as not particularly tnI received consignment dressingtables,Cat. No. DT154,to the aboveorderyesterday. a of x ll confidential. 3Howeve6 deliveryconsistedof six heavymahogany-finished the dressingtablesinsteadof gthe lightpine-finished units I askedfor. o o 3As I havefirm ordersfor the design I askedfo[ | would be gratefulif you could send my !l =consignment soon as possible, as and collectthe wronglydelivered goods.Thankyou inadvance.RobertHughes t o3
    • 6 C rryf toonflaht o E rDoutml6 h t dchtrt b- r! Noticethe contractions ! tr lll andthere,and the o 5 informal stylein this E message. However, isit ! still politeandefhcient RobertHughes E E in tone.Inthis case is it E important thatthe mistake, regardless of whose fault it is,is Re:Wrong (order delivery No.1695) corrected soonas ast possible. notice And that the invoice an- DearRobert t! importantdocument in Thankyoufor yesterdays emailconcerning above the wrongdelivery. E o thistransaction issent - c q with the next delivery I havelooked it andfindthatourcurrent into wintercatalogue the dressing lists tablesyou E andthe catalogue sent is wanted under I you DT189. think musthaveusedlastsummers catalogue. |! by separate post,neither x lr| ofthem asattachments I haveinstructed of ourdrivers deliver pine-finished one to the dressing tablestomorrowand totheemail message. pickuptheother consignment. Rather you thansending a credit invoice D4451 include note,lllcancel No. and anothe[ No.D4487,withthe delivery. Theresalsoa wintercatalogue itswayto you,by post,in caseyouhavemislaid current on the one. RichardCliff t: WhydidMr Hughes t WhyisMrCliffnot t Whi chw ordsi nthe receive wrong a goingto senda credit emailhave similar a delivery? note? meaningtothe WhatwillMrClifido I HowwillMrCliffhelp following? aboutit? Mr Hughes to not r investigated make same the b told mistake again? c collect d lost t04
    • Complaint about n o Head Offire d a ma g e 3 F. Lynch & Eo. Ltd N essonH ouse T !, N ew el i S treet Youhave alreadyseen a = 5 B ttnrtngl rsry1 complaintabout !, B J JE I. breakages in I CI MacK enzi e s l to emai !, +44 (rol ztzt6 657l Tel ephone: ClastonPotteries -* t page85.Thisletter also Faxt+44(o)2r23685t12 3 E mai l :pcrane@l ynch co.uk dealswith damage. o = w w w l ynch com your ref: Ourref: OrderNo.L4478 Date: 15August 20- 7 SatexS.p.A. ln Via di PietraPapa x o, 00146Roma 3 |o ITAIY o Attn. Sig.Daniele Causio E o Dear Sig.Causio Our OrderNo.14478 I am writing to you to complain about the shipment of sweaterswe receivedyesterday against the aboveorder. Theboxesin which the sweaters were packedwere damaged, and lookedas if they had beenbrokenopen in transit. Fromyour invoiceNo.18871we estimatethat thirty garmentshavebeenstolen,to the value of f 550.00. Because the rummaging in the boxes,quite a few other garments were of crushedor stainedand cannot be soldas new articlesin our shops. As the salewas on a CIFbasis and the forwarding companywere your agents, suggestyou contactthem with regardto compensation. we Youwill find a list of the damagedand missing articlesenclosed, the and consignmentwiII be put to one sideuntilwe receive your instructions. Yourssincerely Peter Aa*w PeterCrane ChiefBuyer Encl.Ho w d i d dam age the Why doesMr Crane What doesMrCrane Which words the in ,Ooccur? suggest that Mr intendto do with the letterhave similar aWhycantmanyof Causio hasto deal damaged to meaning the othe garments be with comoensation? consignment? following? ? a duri ngsold What is enclosed with the letter? transportation b assess c getintouchwith 105
    • h Replyto <omplaint E o about damage Eit t Because Satexsells S a te x S.p .A. Tei ei ono:+39 (o)6 7ti 99to |! goodsto their retailers Telefax: +39 (o)5 68r5473! on a crF b asis,a nd this in Vla d l i rretr,lFapa,oor4o l trrrn.r Errra| : c eusiod @satc;r.co.it l c t! casethere was no E special instructionto t s.rif.: Order14478 t!-c sendthe goodsin a ,r rrl " Ns.rif.:D/1162 E particular way,they will oI haveto find out what 24August 20- happened and whether they can get Mr L.Crane compensation.7 Sig.Causio couldhave ChiefBuyer F.Lynch & Co.Ltd askedMrCraneto keep t he u nd ama ge d NessonHouse o garmentsand return Newell Street o o those which could not Birmingham833Et o. be sold.However, he UNITEDKINGDOMEt! wantsthe ship pin gul x companytoinspectthe whole consignment in Dear Mr Crane casethey do not accept that the damagewas Thank you for informing us about the damageto our consignment (Inv.No. caused bythieves. 18871). From our previous transactions you will realizethat this sort of problem is quite unusual. Nevertheless, are sorry about the inconvenienceit has we caused you. Please would you retum the whole consignmentto us,postageand packing forward, and we will askthe shipping company to inspect the damage so that they can arrange compensation.It is unlikelythat our insurance companyneedsto be troubled with this case. If youwant us to sendyou another shipment asperyour orderNo.14478, pleaselet us know. We have the garments in stock and it would be no trouble to sendthem within the next fortnight. I Yours sincerely i , i l al .r, r .i . I r tr DanieleCausio Sales Directorro5
    • Complelnt about o ..t 5uperbuys Ltd badworkmanrhlp 3 S u p e r b uH o u s e y E. t, Wolverton Road Whenbadworkmanship I 5 London isinvolved customer the t s w 1 67 D N canonl y compl aiasth e n t cl Telephone (o)zo832 rti5r +44 faultsarise, they but 0, .El 7 Farumrle (o)zo8327 +44 r935 shoul d l l sti comol aias n tr Emai I k bellon@su perbuys.com soon possible. as In 3 earliercorrespondence o www.superDuys com = )Pages4-z4and59, u 5uperbuys, a Date. TthJuly 20- supermarket chain,Mr P.Lane asked WembleyWembley Shopfitters ltd Shoofitters refitone to 7WycombeRoad of theirshops.The workWembley wascompleted, but tn x qlMiddlesexHA9 6DA some months later 3 faultsbegan appear. to g oDearMrLane oSuperbuys,443 Halton Road,London SE43TN oI am writing to you with referenceto the abovepremiseswhich you reflttedIast February.In the past few weeks a number of faults have appearedin the electricalcircuits and the flooring which have been particularly dangerousto ourcustomers.With regard to the electrical faults, we have found that spotlights haveeither failed to work, or flicker while they are on, and replacing the bulbshas not correctedthe fault.The flooring which you laid shows signs of deterioration, and some areasare worn through to the concrete,creating a hazard to our customers.I would be grateful if you could come and inspect the damage and arrangefor repairs within the next week. The matter is urgent as we can be suedifany of our customers are injured. I would also take this opportunity toremind you that you have guaranteed all your f.xtures and fittings for oneyear.I look forward to hearing from you soon.YourssincerelyKelth, Be.llon,Keith BellonManaging Director Reg No 94fl6 Loildon vrr No 516 84ro 3o t o7
    • R i :p ly t o c s r r rpla i l rt tr q, l rb ot r t b. r d E l vo r k lr r . rn s lr i p 5!l t!!l V/yr Oi I lt)r liu.ru tr G itii r,rlrlL y i) ,vr(i(11{,,( )1.Eso, E o 10July 20-, Mr Keith Bellon Superbuys Ltd Superbuy House7 WolvertonRoad LondonSW16 7DN c,g DearMr Bellong r Superbuys,443 Halton Road, LondonSE43TN E |! x The damageyou described your letter of 7 July has now beeninspectec. intlt Thefaults in the wiring appearto havebeencaused dripping water from by the floor above. The electricalcontractor,who put the wiring in in February, tells me that the wall was dry at the time he replaced old wires. the However,wewill arrangefor repairsto be made and sealoff that section, Duraflooris one of the most hardwearingmaterialsof its kind onthe market and we were surprised to hear that it had worn away within six months,sowe made a closeinspection. noticedthat the floor had been We cut into and this seems havebeenthe result of draggingheavymetal to boxesacross The one-yearguaranteewe offer on our workmanship is it. againstnormal wear and tear,and the treatment the floor appears have to beensubjectedtodoesnot comeinto this category. am quite willing to I arrangefor the suffaceto be replaced, we will haveto chargeyou for the but materialsand work involved.If I may,I would like to suggestthat you instruct your staff to usetrolleyswhen shifting heavy containers. I am sorry about the inconvenienceyou have experiencedand will tell the fltters to repair the damage as soon as I have your conflrmation that they canbeginwork. Thefloor repairsshouldnot cometo more than f 890 andthe work can be completedin lessthan a day.Perhaps you couldring me to arrangefor a convenienttime for the work to be carriedout? Yourssincerely i ,.,t, PeterLane Director Whatdoes Lane Mr What doeshe think Howdoes Lane Mr Which words the in th inkc aus ed t he caused the problem suggest damage the letterhave similar a faultywiring, and with the flooring,and to thefloorca be n meani ng the to whatdoes intend he what doeshe sayhe avoided? following? to doaboutit? willdo about it ? H owl ong i l lthe w looked at repairs thefloor to durabl e take? everyday use movrngro 8
    • Complaintabout o at non-dclivery 3 g LeverFgtai e g. UTHIGTES PtG S rar bc.o L, h Y orkchre B Inthi scase customer, the Forham = 6 c, y.11 Vehicles.makes lorries = JB A. for export.They placed !, Tel t"phorre 44 (o)17 j 16c l a : Fax +44 (o)r723 anorderwith Baden E.F. -* tr 8r953 h - to suppl ythem i th w 3 E mai l :m.bl ackbsl yl (afs1l i .:.;,;, sixtydynamos a for o = shipment lorriesto of be Date: June20- 20 exported Greece. to Baden have neitherHerrR.Zeitman delivered order the norE.F.BadenAG replied Forhams to 7ZiilpicherStr.10-20 previous letterurgingD-40000Diisseldorf11 themto make delivery, !n x !, soForham send strong a 3DearHerr Zeitman complaint. E. o oOrderNo.VC58391 oWe are writing to you with referenceto the aboveorder and our letter of22May in which we askedwhen we could expect delivery of the 60dynamos (Artex model 55)you agreedto supply on 3 Junefor an exportorder.We have tried to contact you by phone,fax, and email but no-one inyour organization seemedto know anything about this matter.It is essential that we deliverthis consignmentto our Greekcustomers ontime asthis was an initial order from them and would give us an opening inthe Greekmarket. Our deadlineis 28June,andthe lorrieshavebeencompleted exceptfor the dynamos that need to be fitted.Unlesswe receivethe componentswithin the next flve days,our customerswill cancelthe order and place it elsewhere.We would like to make it clearthat we are holding you to your delivery contract, and if any lossresultsbecauseof this late delivery we will take legal action.Yourssincerely r,,,u it iu,e/.,B/a,.C :.t; iMichael BlackburnDirector R es F ngl .r nd 8q69r l 5 v b 462j 2117 t og
    • 6 Replyto tr o complaintabout E Zi l l pi cher5tr. rc-2o, D -4,oooo 6 non-delivery D i .i l sel dorf l l It Tel+49 rrr j 8 34 06/09 G Notehowthis letteris! Fax r4c1 18 14z7r zr tr apologetic firm. but [:rrrrr! zertman@baden.co i de G Though Baden E.F..E accept responsi for bility 29June20-! e the problems Forham MrM.Blackburn E Vehicles in face ForhamVehiclesplc oL delivering their LeverEstate consignment their to ScarboroughYOll3BS Greek customers, Herr Zeitman rejects the DearMr Blackburn th reatof lega actionby I drawing Blackburns Mr Thankyou for your letter of 20 Juneconcerningyour order(No.VC58391), o attention a clause to in which should have been supplied to you on 3 June. theircontract stating-c thatthecompany will First,Iet me apologizefor your order not being deliveredon the due date and-gL C notberesponsiblefor for the problems you have experiencedin getting in touch with us.Both are E G x unforeseen the result of an industrial dispute which has involved our administrativeul circumstonce Howeve s. r, staff and employeeson the shop floor, and has held up all production over Herr is Zeitman flexible the pastfewweeks. enough realize to he mustnotantagonize his The dispute has now been settled and we are back to normal production. customer, heallows so Thereis a backlogof ordersto fill, but we areusing associate companies to Mr Blackburn the help us fulfil all outstanding commitments. Your order has been given opportunity cancel to priority, so we should be able to deliver the dynamos before the end of this theorder hecanmake if week. otherarrangements. Thisletter illustrates May I point out, with respect,that your contract with us has a standard two mainpoints: rst,do fi clausestating that delivery dateswould be met unless unforeseen notcommityourself to circumstancesarose,and we think you will agreethat an industrial dispute contracts you unless are is an exceptional circumstance.However,we understand your problem and absolutely certain they will allow you to cancelyour contract if it wiII help you to meet your canbefulfilled; second, commitmentsto your Greekcustomers. we wiII not accept But always andbeas try responsibility for any action they may take against you. flexible possible as with customers associates or Onceagain let me say how much I regret the inconveniencethis delay has evenif youarein a caused,and emphasizethat it was due to factors we could not have known strong position it will - about when we acceptedyour delivery dates. improveyour business reputation. Please me know if you wish us to complete your order or whether you let would prefer to make other arrangements. I look forward to hearing from you. Yourssincerelv t/- K0T -/-txJ.U4rj.Y, RolfZeitman Managing Directort10
    • A creditnote may alsobe issuedwhen a a rl ! IA CCOU N T IN GE R R OR S D AN o depositis refunded(e.g on the cartonsor cases 3A DJ US T M EN T S 9 which the goodswere packedin) or when ll 5Many lettersof complaint ariseout of goodsarereturnedbecause they were not 9Jaccountingerrors, which canbe correctedby suitableor were damaged. 5 qadjustments Debit notesand credit notesare - Received returnedcases 3 charged Invoice on t,usedfor this purpose No.t4j6 @E7.oo each= tzt.oo. -* tr - Refundfor4 copies oflnternational 3 Commerce f,t6.5oeach(returneddamaged) = oD eb itnotes 5 t66.ooDnr r r u o rrs a rea s e c o n d c h a rg e fo r a As with a debit note,inthe caseof mistakesconsignment and become necessary a if a coveringletter ofexplanation and apologycustomerhasbeenundercharged through amistakein the calculations the original on shouldbe sentwith a credit note. 7 - I havepleasurein enclosing creditnotefor ainvoice. explanationfor the chargemust An €z4o.oo Thisis dueto a miscalculation onbe includedon the debit note: our invoicedatedtz August.Please accept our- Undercharge invoicecz93. Units on to apolog for the error. ies @ftz.6zeach= f,tz6.zo, Nor f.16.20 - Pleasefind enclosed creditnote No.c4for our- InvoiceNo.p.32, line omittedviz. toomn one €t65.6owhich is a refundfor the overcharge Zip Disks f8.4o each= f84o.oo @ on invoiceNo.tz8j. Asyou pointed out in- var shouldhavebeencalculated ry.5%, at your letter,the tradediscountshouldhave = wor ry% Difference f8t.86 beenp%, not rc%,of the gross price.WeOncea buyer has settledan account, isit g apolo izefor the inconvenience.annoyingto be told that there is an additionalpayment An apologyshouldalwaysaccompany debit note. a- Wewould liketo apologize the mistakeon for invoice czgj,whichwas No. dueto an oversight. Please couldyou sendusthe balance €795.oo? of- I am sorryto troubleyou,particularlysince youwere soprompt in settlingthe account, but I would begrateful if you would let us havethe additionalamount of €34o.ooas itemized onthe enclosed debitnote.- I regretthat we miscalculated var and the must now askyou toforward the difference of f 5t.86.CreditnotesCnr prr NorE s aresentbecause accidental ofovercharges:- to copies o/lnternational Commerce@ ft6.5o = ft65.oo Nor 8ry5oo- Invoicet283.Discountshouldhavebeenn%, not 8%.Credit= Y5,140 oo.
    • 6 E Ihblt note o E Thisnoteis necessary 5 because suppliers, the=t! G Seymore rniture,have Fu made mistake their a in Furniture Ltd Debit Nete t NO.311 G O calculations have and€ g undercharged their Telephone: (o)r628 +44 26755 TibStreetg customer, M6ndez. C.R. o Fax:+44(o)t62826756 Maidenhead E Email: accounts@seymore.co.uk Berkshire o, Registered t85t439r No. London s 165oz vAr No.231 6188 3r UK 3lMay 20- C.R.M6ndez S.A. o Avda del Ej6rcito 836E E-48015Bilbao5 o! 5May2G- Invoice No. L 8992.UNDERCH.A,RGE. o E E The extension should have read: o 6 Chairs@f 35.00 each= f210.00 xII NOT 6 Chairs@f,25.00each= f150.00 We apologizefor the error and ask if you wouldplease paythe difference of f,50.00. f50.00
    • Creditnote 6 o 3 Seymore Furniture E have made mistake a E. 5 on another invoice and 6 t NO. C517 mustnowsenda credit = CL note.Notethat the form !, Telephone: (o)r628 +44 26755 TibStreet for a creditnoteisthe -* g G Fax:+44@)t62826756 Maidenhead sameasthat for a debit note,except the for 3 o Email:accounts@seymore.co.uk Berkshi re 3 Registered r85r439r No. London s L 65 D 2 heading. Credit notes, I ver No.z3r61883r UK however,are often printedin red. 20May20- C.R.M6ndez S.A. 7 Avda del Ejercito 83 m E-48015Bilbao x c, 3 g o10May 20- Invoice No.t899 5.OVERCHARGE. 6 o a The invoice should have read: L5Y" gross off price of f800.00 = f120.00 = o NOT o 10%offgross price off800.00 = f80.00 Refund= f 40.00.PleaseacceDt our apologies. [40.00 r 13
    • # 6 E Complelntrbout o eccountlngc?nort E tol n,. xllrlr|. & lrFt.l I 5 (a M. Lancelot builders SARL IrI. LAD|GELOT rt.oooffoatpelhr t |! supplier) received has a ! statementwhich lahplroo. E G .y3)4843to3t 5 several contains fdccopie .E errors. accounting . ]] r ful toll ! E Imerl E *r.tr(c ():iEl.t(clOl (O tt o tJ 5August20-f MrK.Winford K.Winford & Co.Ltd o PrestonNewRoad g o Blackpool n 4 LancashireFY44UL E |! ul x DearMrWinford I have receivedyour July statement for f 3,280.54 notice it contains a but number of errors. I Invoice Y1l46for t256.O0has been debited twice. 2 No credit has been listed for the wallpaper (Cat.No.MR114) which I retumed in JuIy.Your credit note No. CN118 f19.00 refers to this. for 3 Youhave chargedfor a delivery of paintbrushes,invoice No.Y1162 for f52.00, but I neither orderednor receivedthem. Could you checkyour deliverybook? Ihave deductedatotal of f337.00fromyour statement andwil iendyoua draftfor t2,943.64once I have your confirmation of this amount. Yours sincerely Ma*uire Lanrt/ot MauriceLancelot Director il4
    • Replytocomplaint n oTelephone aboutaccounting 3+44 @)tz53 6t 2go/ t / 2Fax K.tTinlold errors ! t I+44@112536978Emailwink@winford.co.uk &Go.Hd t o - !J .El tr 3 o = P restonN ew R oad s B l ackpool Lancashi re FY 44U L t 7 August 20- tnM. Maurice Lancelot x 0,Director 3M. LancelotSARI E. o703rue Metairie de Saysset oF-34000 Montpellier oDear M. LancelotThank you for your letter of 5 August in which you pointed out that threemistakes totalling f 337.00had been made on your statement.I apologizefor the errors.Thesewere due to a software fault which has nowbeen fixed. I have enclosedanother statement for July,which showsthecorrectbalanceof. L2,943.64.Yourssincerelyrc.wtnforoLK.WinfordEnc. Statement R eg N o 3i l 62531 vAr No 83r4ooj 36 rt5
    • Points remember to 5 1 Minor complaints can be faxed or emailed, E o but use letters when dealing with more E a senousones. It- G 2 Beforewriting a letter of complaint, make! sure you have got your facts right. C o 5 3 Complaints are not accusations, they areEg requeststo correct mistakes or faults, They B should be written remembering that theo Ev supplier almost certainly wants to put things right. 4 Never make the complaint personal (e.g.T your mistake, your fault,you are to blame). Usean impersonaltone (e.g.themistake,it must have happenedbecause the enor). ..., 5 Whenansweringacomplaint,thankyour . customer for pointing out the problem. If the complaint is justified, explain how the problem occurredand how you intend to dealwithit. 6 If you need more time to investigate the complaint, tell your customer. 7 If the complaint is unjustified, politely explain why, but sympathize about the inconvenienceit has caused.n6
    • 118 118 FO RM SO F C R E D I T REqUt REM E N T S O RG R A N T I N GC R E D T T F n 118 118 ASKI NG FoR c R E D I T O pening o - rr8 Convincingyoursupplier 119 Closing o- 119 REPTYTNG R E q U E S T S O RC R E D T T TO F t+ -a 119 Agreeingto credit 119 Refusingcredit 12o Negotiating 12o Replywhile waitingfor referencestx Amp rts 121 R e q u e s tforopenac(ountfaci l i ti es 122 Reply IrantinB op€n accounlfacilitier 123 Requertfor generalcedit facilitles 124 Refusal <reditfacilitier of 125 lequ?rt for a changein thc termr of payment 125 Notillcationof taling up referencct tz 6 As KrN cA Bour cR E D trR A TIN G rz6 Opening tz6 Details tz6 Closing tz6 Usingan enquiryagency 127 R Ep L y tN TO E N qU tR tE A B OU T R E D TTA TTN G G S C R 127 Refusingto reply 127 Replyingunfavourably tz8 ReplyingfavourablytxA$PtEs 129 lelter to a referee I t3o Refereer replyI r31 Lette? a referee to 2 132 Refereerrcgly 2 r33 Negalivereplierto enquiries about crcdit rating 134 L e tte rto a n enqui ryrgenl r35 [nquiry agentsreply 86 Pointstoremember
    • supplyreferences, though thesetend to be!to F OR MS OF C R ED IT briel statingthe companys capitaland whov Creditarrangements betweentrading i ts di rectors are.Tnapn assocrerrous,i. e. companies take two forms: organizations which represent the -B Itts o F E x c H A N GE ,o TB A N K A rrs, DR companys trade or profession,alsogivebrief by which the suppliergivescreditto the references telling the enquirerhow long the customerfor the period specifled, thirty, e.g. companyhasbeentrading and whether it is sixty, or ninety days. Iargeor small.References alsobe can - Op n NAc c o u N r rAc rL r rrE byw hi chthe s, obtainedfrom, e.g. customers the business customeris allowedto pay for goodsagainst associates the commercialdepartments and monthly or quarterlystatements. of embassies. In orderto control a transaction, supplier a8 may sendaqualityand deliveryJaxtothe A S K IN G FOR C R E D II customershortly after despatchof the goods, statingthat they were despatched the date on tr ir of the invoice;that they met the quality When askingfor credit facilities,it is bestto go conditionsofthe contract; that the supplier straightto the point and specifywhat form of would like to be informed if the goodsarrived credit you arelooking for. intact or were damagedon delivery;and that - I am writing to ask if it would bepossiblefor the supplierlooksforward to prompt payment in us to havecreditfacilities theform of on the due date. payment by 6o-daybill of exchange. As a rule,all areasof credit dealingshouldbe - Thankyoufor your catalogue and letter. As considered confidential,so open therewasno indicationof your creditterms, correspondence email and fax shouldbe like couldyouletme knowif youwould allowus used carefully. to settleon monthly statements? - Weappreciate your prompt answerto our R E q U T R EME N T S OR C R A N TTN G F enquiry. I pointed out in my letter,our As C R ED IT suppliers usuallyallow us openaccount facilities with quarterlysettlements, I and Cnr prr FAcrlrrrEs will only be granted a by hopethis methodof payment will be supplierif the customercan satisfyone or acceptable you. to more of thesethree requirements: 1 Reputation- Creditmay be givento flrms which have an established reputation,i.e. arewellknown nationhlly or As mentioned above, your supplierwill only internationally. grant credit if they are convinced that you will - 2 Long-termtradl.ngassociation If a not pn rrulr, so mention your previous customerhas beentrading with a supplier dealingswiththem. overa period of time and has built up a good - As we havebeendealingwithyoufor more relationshipby,for example,settling than a year,weJeeIthat you know us well accounts promptly,they may be ableto enoughtogrant our request. persuade supplierto grant credit the - Webelieve haveestablished reliability we our facilitieson this basisalone. with you overthepast six monthsand would 3 RnrEnnNcn - Normally, s when askingfor now liketo settleaccounts a quarterly on credit,a customerwill supplyreferences, i.e. basis. the namesof concerns companies or which - During thepastfew monthswe havealways will satisfythe supplierthat the customeris settledpromptly,and therefore feel we can we reputable and cnrprrwonrHv. Banks will ask bettercre facilitie sfrom y ou. for ditrr8
    • Mention your reputation,and offer references. request seepager2oandthenreplyinfull !- Weare awell-established companyand can when references havebeenreceived. I offer references, necessary. if - Wehavenow receivedthe necessary- Wecan certainly pay on the due dates, if but references arepleased inform you that, and to you would likeconfirmationconcerning our from your next order, payment can be made creditworthiness, pleasecontactany ofthe on a quarterlybasis againststatements. following who wiII act asour referees:. .. - Thereferees gaveus haverepliedand we you- Wedealwith mostof our suppliers a on are ableto teIIyou that asfrom next month quarterlysettlementbasis andyou may youmay settle your accounton a documents contactany of thoselistedbelowfor a againstacceptance basisby 6o o/s s/t reference. When refusing creditfacilities,the writer 8- Wehopefor afavourabledecision andlook must explain why the requesthasbeenturned forwardtoyour reply. down.Theremay be variousreasons this. Itfor- Wehopeyouwillfollow upthe references might be uneconomicaltooffer credit we havesubmitted.Welookforward to your facilities;you may not trust the customer, i.e. confrmation that payment by 3o-daybill of the customerhas a bad reputation for settling exchang is acceptable. e accounts; it might simply be companypolicy or- As soonaswe receive your confirmationthat not to give credit.Whateverthe reason, the youwill allow the openaccountfacilitieswe reply must be worded carefully so as not to haveaskedfor,wewill sendour nextorder. offendthe customer. - Thankyoufor your letterof 9 Novemberin whichyou askedto beput on openaccountR E PL Y IN G O R E O-U E 5 TF OR C R E D IT T S t erms.Unfortunately, never allow cre we dit t- facilities to customers untilthey havetraded with usfor overa year.Wearevery sorrythatIfthe supplierdoesnot think it necessary we cannotbe morehelpful at present.to take up references, they may grant credit - Weregretthat we are unableto offeropenimmediately. accounttermsto customers our products as- As we havebeentradingfor overa year, arecompetitively priced,and with small references not be necessary. may wiII You prof.t marginsit is uneconomical allow to clearyour accounts jo-day biII of by creditfacilities. exchange, which wiII besentto Burnleys - Wearesorrythat we cannotoffercredit Bank (Queens Building,Cathays Park,Cardifr facilities of any kind at presentowing to cn 9w) with shippingdocuments yourfor inflation.However, the situation improves if acceptance. we may beableto reconsider your request.- Wearepleased informyou that the credit to - Wehaveconsidered your requestfor facilitiesyou askedforareacceptable, asand quarterlysettlements, butfeel that with our we know the reputationof your company competitivepricing p olicy, which Ieaves only therewill be no needJorus to contactany smaIIp roft margins,it would be referees.wouldjust like to confi.rm I that we uneconomical allow crediton your present to agreed settlement bemadeagainst wiII purchases.However,if can offerthe usual you monthly statementsWelookforward to references increase and your purchases atby receiving your next order. Ieast5o%, we would be willing to reconsiderIf references considered are necessary the situation.however, supplierwill acknowledge the the 119
    • To N e g o ti a ti n gtr, Sometimesa supplier will not offer as much credit asthe customerwants,but will negotiatea compromise. - I regret that we cannot ofreryou creditfor as Iongas threemonths,since thiswould be uneconomic for us. al However,we are preparedto offeryou settlement agatnst monthly statements. Perhaps you would let . me know if this is acceptable? - Thoughwe do not usually offer credit8 facilities, we would beprepared to consider partial credit.In this caseyou wouldpay haIJ your invoices a cashbasis, on andthe restby 3o-daybiII of exchange. thisarrangement If suitsyou, pleasecontact us. R e p l y w h i l e w a i ti n g fo r referencel In somecases you will not be ableto grant credit without making further investigations. In particular, you may want to take up the references your customerhas offered.Inthese cases, your reply will be little more than an acknowledgement of the request. - Thankyoufor your letter inwhichyou asked for creditfacilities. presentweare writing At to the referees mentionedand wiII letyou you know assoonas we hearfromthem. - In reply to your email of 8 lune, we wiII consider your request pay by 3o-daybiII of to exchange and wiII contad youby letter as soonas we havereached decision. a - With reference your letter of ry March, in to whichy ou aske for open account d facilitie s, I wiII contactyou assoonas the usual enquiries havebeenmade. - As we haveonly just received your letter asking or creditfacilit ies,would y ou allow us f a little time to consider matter?I wiII be in the touch with you again within the next couple of weeks.
    • Requcrtfor open ,l o eccount hcilities cl I[. [tu;;hrs Mr Hughes, some of whose corresoondence & Sortl,ful we looked in orevious at unitsrsee pagesz6-27, .rrMced Road,Swrnrca g3-g4,andrc3-ro4, Wert Glamorgen rDr Str asks ssuppl i er he hi if lelephone: (o)r792 +44 5844r w i l l al l ow mopen hi Fcx:Swa nsear 44 (0)179 5947 2 2 account facilities. r.hughes@huson Ernorl: co.uk Although some their of exchanges been have by email, topicof credit the 18July 20- ismore sensitive and 8 wouldbedealt with by letter. Hughes Mr makes tnMrR.Cliff x hisrequest while oHomemakersLtd 3 sending order an rather g54-59Riverside oCardiff CFlUW thanmaking next his |D ordercondi ti onal on o Mr Cliffsacceptance.DearRichard Compare with the thisI have enclosedan order,No. B 1662, sevenmore Sleepcomfybedswhich for letterin whichF. Lynchhave proved to be a popular line here, and will pay for them as usual on & Co. made theirnextinvoice.However,I wondered if in future you would let me settle my order conditional on revised termsaccountsby monthly statement asthis would be more convenient for me? >see page84.As we have been dealing with one another for sometime,I hope you willagreeto trade on the basisof open accountfacilities.I can,of course, supplythe necessary references.YourssincerelyRpbertRobertHughesEnc.OrderNo.91662 VAr H o 2152?61J o
    • ! fryy3nntln3 otJ oparxcount trcllltht g4g tlnnlJr. Crr{fl <n rrr Mr In hisreply, Cliffsays Tch9rronc;..H lolrg ro 49711 he isprepared give to f tr: r4.4lolrg ro aggtT credit,eventhoughhe I marl] r( kttOho.r*mllcn <orn feelsit maynot bein Mr Hughes interests. best 24luly20- MrR.Hughes R.Hughes & Sonttd8 2lMeadRoad Swansea o West Glamorgan 3STlDR att o 4 E t! DearRobert xtll Thank you for your order,No. 81662, which will be sent to you tomorrow. I have taken the opportunity to enclosethe invoice,DM1113, with this letter. With regardto your request for open account facilities, setflement against monthly statements,I feel there would be more advantagefor you in claiming the 3%cashdiscounts offered for payment within sevendays of receipt of invoice.Nevertheless, am quite prepared to allow monthly I settlements,andthere will be no need to supply referencesas you are a long-standing customer. The enclosedinvoice will be included in your next statement. Yourssincerely . Ri^&a/d RichardCliff Director Enc.InvoiceDM1113 l(tnt"rrd t|o ottT6,i, Whydoes Cliff Mr thinkitwouldbe Whatformof open accountfacilities is Whydoesnt Cliff Mr needanyreferences Whenshould pay Mr Hughes invoice5 betterfor Mr Hughes to settleinvoices within seven days? MrCliffoffering? from MrHughes? o rvr rrr3?122
    • Rcquodio,r n o 3cnonl cndlt c frcllltlcrr5r nrc desRaimoni€rest-t6ooo FoitieruCddcr 5A T6lephone (+1319968ro1r r Tdl6copic(+33] 74rorr61 l Enell p 6erard(odr*<ofr r.. PG/AL 3 December 20- 8 lnHerr R.Gerlach x !,R.G.ElectronicsAG 3 !Havmart 601 oD-50000Koln 1 6- oDearHerr GerlachI intend to place a substantial order with you in the next few weeks andwondered what sort of credit facilities your company offered?As you know, overthe past months I have placed a number of orderswithyou and settled promptly, so I hope this has establishedmy reputation withyour company.Nevertheless, necessaryI am willing to supply references. ifI would like, if possible,to settle future accountsevery three months withpayments against quarterly statements.YourssincerelyP.QtuadP.G6rard(M.)Manager 12
    • € Rcfumlof crcdlt.9 fr<lllties Inthis reply, Electronics R.G. turn R.G. Elect nics AG I;H"-T,,, ro Disc 5.A.s request down, Telefonr*49) 221 J: .,) rt4 even though two the Io{ctu (i 49l zzt E l or t5 companies traded have Imerl 5trl atnr6rge.co.de for some time. itrJwl!:le.0e vorr Ref. PG/AI 8 December 20-8 M. P.Gdrard DiscS.A.oE 251rue Raimonidres desgg F-85000PoitiersCedexgEoxul DearM.Gerard Thank you for your letter of 3 Decemberin which you enquired about credit facilities. We appreciatethat you have placed a number of orderswith us in the past, and are surethat you can supply the necessaryreferencesto support your request.However,as you probably realize,our products are sold at extremely competitive prices.This allows us only small proflt margins and prevents us offering any of our customerscredit facilities. We are very sorry that we cannot help you in this caseand hope you understandourreasons Onceagain,thank you for writing, and we look forward to hearing from you soon. Yourssincerely -tl K. QilttlQt R.Gerlach Sales DirectorE I HowdoesHerr 2 Whatreason does I ls it onlyin 4 HowdoesHerr€ Cerlachassure HerrGerlachgivefor M.G€rardscase Gerlachencourage! M.G6rard his that refusing credit that credit has furthera-O has firmsreputation facilities? beenrefused? correspondence? nothing dowith to the rejection?124
    • Request a for ar o in change the CL termsof payment As we haveseenin previous units, MacKenzie Brosof Canada import chinawarefromGlaston Potteries England. inDearMr Merton Theycurrently payOur bank has advisedus that the proceedsof our letterof creditagainstyour invoice, by letter ofcreditNo. G1197/S,have now been creditedto your account. >see pages58 and 85, but now want to pay onAlthoughwe havepaidfor some time on this basis,it does not reallysuit our accounting quarterly statements by 8system,and as we feel you know us well enoughby noq we would liketo makefuture international kers ban mpayments quarterlystatementsby international on bankersdraft. d raft.Thisinvolves rly fai x cl long-termcredit, they so 3 .glf you requirea reference, pleasecontacteitherMr M. Piersonor Mr J. Taneat our other supply references. osuppliers,Pierson& Co, Louis Drive,Dawson,Ontario,who will be happyto vouchfor us. o 3 g-Pleaseconfirmthat these new terms are acceptable you. to IRichardMacKenzie Notification of takingup references GlastonPotteries are sym pathetic Mr to MacKenzies request, but RE: Termsof payment decide takeupthe to referenceoffered.DearMr MacKenzieThankyou for your emailof 9 Februaryin which you askedto changeyour terms of paymentto settlement bankers by drafton quarterlystatements.We are takingup the reference you offered,and providedit is satisfactory, can consider youthe new arrangement effectivefrom your nextorder.JohnMertonSalesManagerGlastonPotteriesLtdClayfield, BurnleyBB101RQTel:+44 (0)128246125Fax:+44 (0)128263182 j.Email: merton@glaston.co. uk r25
    • Iftheamountofcredi ti sknow n i ti susuallyTI (u A s K T N G A Bo u rc R E D rr R A TTN c mentioned.I The guide below givesyou an outline of how - Thecreditwill be about f,6,ooo. to take up references to askabout a and - Wedo not expectthe creditto exceed f,4,ooo. c o m p a n y s c R E D R AT IN G. Ir -Thedrafti sforf,gz6oo. - It is unlikelythat they wiII ask morethan a for ft,ooo creditat this staqe. Saywho you are and why you want the information.Make it clearthat the name of the companyyou arewriting to hasbeen givento Thankthe companyin advance giving for you as a reference your customer. this is by If you the information, and tell them you will not the case, you areunlikelyto get areply reciprocate ifthe opportunity arises.AIso,let8 " seepager27. themknowthatwhatevertheysayintheir - Weareafurniture wholesalers havebeen and ietter will be treated asconfidential. askedby L R Naismith& Co. oJzt Barnsley Ltd - Wewould liketo thankyou in advance the for Road, Shefieldto ofer them openaccount inJormationand can assure you that it will be facilities with quarterlysettlement terms. treatedin the strictest confidence. Theyhavegiven usyour name asa reference. - YourhelpwiII beappreciated, the and - Weare a glassmanufacturers and have information will be held in confidence. We recentlybegunto exportto the uK.D.R. will return thefavour shouldthe opportunity Mitchell & Son,whoarecustomers yours, of ar6e. haveplacedan orderwith us,but want to pay - Wecanassure you that the information will byjo-daybillofexchangeTheyhave notbedisclosed.Thankyouforyour inJormed that you would bepreparedto us assistance this matter.If we can reciprocate in act astheir referees. pleasedo not hesitate in a similar situation, - Yourbranchofthe EastlandBankwas given to contactus. to us asa reference LT.S. by Ltd,whohave placeda substantialorderwith us,and want to settle 4o-daydraft Couldyougive us a by guideto I.T.S.s creditrating? Business associates may give more information than banksand trade associations, who will usually only givebrief references but seepagetz7.An enquiry Sayexactlywhat you want to know. agencywill give much more detail about a - Wewould liketo know if the companyis company, and for a fee,will researchits creditworthyand hasa good reputati.on. financial background, standing, its - Wewould begrateJulif you couldtell us if the creditworthiness, and ability to repayloansor companyis reliablein settling itsaccounts fulfiI obligations. When writing to an enquiry promptly. agency,therefore,you can ask for more - Could you let us know if this companyis information. capableoJrepaying a loan oJ this sizewithin - Wehave beenaskedby D.F Rowlands of Ltd thespecifiedtime? MiltonTradingEstate,Peterborough,to - Could you tell us if the companyhasa good providethem with a creditof up to t 5,ooo by reputationin your country;whether they can allowingthem to settleby quarterly be reliedon to settle promptly on due dates; statements. we haveno knowledge this As of and what limit you wouldplaceor have company, would it bepossible you to give for placedon creditwhendealingwith them? usdetailedinformation of their trading activitiesover,say,thepast threeyears?rz6
    • - Thecompanynamedon the enclosed has slip - Thankyou for your letter,which we receiv d e 6 o written to usaskingif we would allow them to today.Unfortunately, know nothing about we tl settleby 6o-daybill of exchange. trading Our the company our only dealings as withthem with them sofar hasonly beenup to havebeenon a cashbasis.We sorrythat are tt,5oo.oo. we knownothingaboutthem or As we cannothelpyou in this matter. their creditworthiness,couldyou investigat e Sometimes you may simply not want to give their businessactivitiesoverthepastfew any information about a customer, whether yearsand give us a detailedreport? you know their reputation or not. In this casea polite refusal,generalizingyour statements, isRE P L YT N G O EN q U rR rES A BOU T T the best courseof actionCRE D ITR A T IN G - With reference your letterof t6 October to in whichyouasked aboutthecredit standing ofIn most countriesthere arelaws whichprotect a companyfrom having its reputation oneof our customers, regretthat it is our we 8 policy neverto give information aboutdamagedby anyonesayingorwriting customers inquirers. business to As associatesanything that could harm its goodname,and of ours,we are sureyou wiII appreciate this.this shouldbe considered when giving details Perhaps enquiryagencywould be more anof a companys creditworthinessor helpful?commenting on its standing. Ifyou give an unfavourable reply,do notThereare a number of reasons why you may mention the name of the company. Giveonlynot wish to reply to an enquiry.If, for example, the factsasthey concernyou Do not offerthe companywriting to you doesnot statethat opinions,and remind the companyyou areyou havebeennamedas a REFxREE bytheir writing to that the information is strictlycustomer, and you do not want to risk confidential.It is advisable to use an open notoffending a businessassociate, would be it systemlike fax or email for this kind ofbetter not to make any comment. communication.- Thank youfor your letterconcerning our - With reference your letter of t9 April in to customer, we cannotgiveyou any but whichyou askedus to act as refereesfor the information until wegetpermissionfromthe customer mentioned,we haveonly dealtwith customer. Could you therefore theperson ask them on afew occasions butfound they mentionedinyour letterto write to usasking tended delay to paymentand had to be us to act as referees? would then be happy We reminded several timesbefore theiraccount to giveyou the necessary information. wasclearedBut we haveno ideaof their- As we havenot beenaskedby theperson trading records with other companies.We are mentionedin your letter to write a reference sureyou will treat this information in the on their behalf,we cannotsupplyany strictest confdence. informationaboutthem. - In replyto your letterof 4 SeptemberIfyou do not know enoughabout the company concerning customeryou the enquired about,to comment,then it is better to sayso. we regretthat we cannot recommend frm the- With reference the company to you as being reliablein their creditdealings, but mentionedin your letterof g October, are we this information is based only on our own sorryto saywe know little about them aswe experience trading withthem.We offer this of haveonly suppliedthem on a coupleof informationonthe strictunderstanding that occasions.Therefore cannotgiveyou any we it wiII be treatedconfdentially. details theirtradingrecord creditstanding. of or 127
    • t:! g Rrplyiryfercurably, Even in a favourable reply, you should still not mention the customersname if possible.You can state that you have allowed credit facilities and,if you are sue, you could mention the customer has a good reputation within your trade.In the examplesbelow you will seethat the referenceshould still be considered confidential, and that the refereetakes no responsibility for how the information is used. - Wearepleasedto inform you that in our experience company mentioned in your the8 Ielter oJ7Novemberis completelyreliable and canbetrustedtocleartheirbalances promptly on due dates.However,wetake no responsibility how this information is for used. - With regardto the company mentioned in your lelter of 8 December,we you can assure that they havean excellentreputation in dealing with their suppliers, and though we have not given them the credit terms they hatreasked you for, we would allow them those facilitie s if they approachedus.Please treat this information as confidential.rr8
    • Lcttrrtoerful rl o c Asnotified theiremail in Dsee Page Glaston 125, Potteries keup the ta c,ayne,d W? IBurn,ey IBB,o,Ro- ;ntt?lr, *" reference MacKenzie offeredby Bros. Telcphone (o)r:8245rr5 +44 F*rimlle +44 (o)rz8:63182 Emeilj. merton@glarton.co.u k www.glaston<om Yourref: t6 February 20- 8 tn MrM.Pierson x !l Pierson& Co. 3 g Louis Drive o o Dawson * o Ontario CANADA Dear Mr Pierson We are suppliers to MacKenzieBrosLtd,1-5 Whale Drive,Dawson,Ontario, who have askedus to give them facilities to settle their statements on a quarterlybasis. They told us that you would be prepared to act as their referee,and while we have little doubt about their ability to cleartheir accounts, would like we confirmation that their credit rating warrants quarterly settlements of up to f8,000. We wouldbe very gratefulfor an early reply,and can assureyouthat it will be treated in the strictest confidence. Yourssincerely Jolwlrtertan, JohnMerton Sales Manager Rn$rstoled 7164Er No vATRf,tistrr?d r339343r No o8WhatdoGlaston Whatassurance do 4 WhichPotterieswant MrPierson do? to theygiveMr Pierson aboutthe words the meaning the to a in letterhave similar f - o information they following? :Whyhave theyasked IMr Pierson dothis? to want? a everythree months b sayingthat something true is r justifies d payments 729
    • :E! Rcfereer reply1 glJ Loui sD ri ve I D aw son l Ontari o l C anada Tel ephone(+tl $ 4 zg5 t68z Faci mi l e (+t) 6t4zg5 r4-7t C abl e P l ER C O E mri l m pi erson@prerco uk co Drte 28 Februarv20-8 MrJ.Merton Glaston PotteriesLtd o ClayfieIdfig Burnley BB10 1RQg UK A. E t!EI x DearMrMerton I am replyingto your enquiry of 16February in which you askedabout MacKenzie Brosof Dawson,Ontado. I contactedthem yesterday and they confirmed that they wanted us to act astheir referees, I am pleased be ableto do so. and to The company has an excellent reputation in North America for both seryice and the way they conduct their businesswith their associates the trade. in We have given them credit facilities for at Ieastten years and have always found that they have paid on due dateswithout any problemp.I might also add that our credit is in excess the one mentioned in your letter. of You can have every confidencein offering this companythe facilities they askfor. Yourssincerely Mahnh4,tPtzrson MalcolmPierson Director c WhatdidMr Pierson What doeshe mean Whichwords in the.9 do before wrote he by they have paid on letter havea similar 3 the reference? due dotesl meaningto the Icv Whatishisopinion of How doeshe explain following? a morethan of MacKenzie Bros? that they are b feelingofcertainty creditworthy?t 30
    • Lettcrto a q refcree2 4 ; SatgX 5,p.A, relefono:+39(o)67699ro Hereisanotherexample Tnlefax: (o)568i5473 +39 papa. of takingup references viadi pietra Roma oo146 Ernail: causiod@satex.co.it thistimefrom Satex, the ltalianmanufacturer Vs. rif.: we havemet in previous Ns. DC/AA rif.: units.Their customer, F.Lynch Co., & askedto 4JuIy20- beallowedtosettletheir accounts by4o-day bill Mr T.Grover of exchange, documents GroverMenswearltd instacceptance o e Page F.LYnch 84. o Browns Lane Rugeley & co.offered references, whichsatexaretaking F staffordshirews15 lDR up. 3 F Dear Grovet Mr g q Your name was given to us by Mr L.Crane,the chief buyer of F.lynch & Co. Ltd,NessonHouse,Newell Street, Birmingham 83 3EL, who have askedus to allow them to settletheir accountby 40 -dayB/8. They told us that you would be prepared to act as their referee.We would be grateful if you could confirm that this company settles promptly on due" dates,and are sound enoughto meet creditsof up to f 5,000in transactions. Thank you in advancefor the information. Yours sincerely ,I uahre,lp oa/,LftD DanieleCausio Director Sales 13r
    • Refcreerrcply2 qNI! oI NotehowMr Grover says willtakeno he trl()VCl tr responsibilityfor the information how he irt etlsweat provides used,and is B rcw ns Iarre reminds Satex that the p rffFtfy letterisconfidential. 5i,l{fi)rilih i it"Ah1tf, . ..a r-.:..iilil(ill taX+41tc 1ir J !rr)J., EmAilt grOvetr;", rr ..wD,rr (c ili8 9 July20- o o o Mr D.Causioq SatexS.p.A.E|! Via di PietraPapaxgl 00146Roma ITATY DearMrCausio We have receivedconfirmation from F.Lynch & Co.ltd that they want us to act as refereeson their behalf, and can give you the following information. We have been dealing with the company for ten years and allow them credit facilities of up to f4,000, which they only use occasionallyasthey prefer to take advantageof our cashdiscounts.However,we would have no hesitation in offering them the sort of credit you mentioned, i.e.f,5,000, as they are a large reputable organization and very well-known in this country. Of course,we take no responsibility for how you use this information, and would remindyouto consider it as confidential. Yourssincerely 7.Qrorer T.Grover (Mr) Director,GroverMenswearc WhatdidMr Grover Why doesF.Lynch & Howdoes Grover Mr Which words the in3 do before contacting Co.onlysometimes explainthat his letter have similar a3 Satex? useGrover companywill be not meaning the to:o Whatexpression is Menswears credit liable Satexs for following? usedto mean.,for facilities? decision? r tradingwith them? b respected ( privatet32
    • tegativc rcpllcr IDearMr Stevens to enquirlcs ebout gI am replying to your letter of L0August in which you askedabout one of crcdit retlngour mutual business associates. Inthis letter, writer theI regret that I cannot give you the information you askedfor as it would be a refuses replybecause to hedoesnot have thebreach of confidence.if, however,you can get the company to write companys permission.instructing us to act as their referee,then we may be able to help you.YourssincerelyMark cluft44/t/.r,MarkChapman 8 ln x ll Thereply thiscase in is 3 unfavourable.Notice TIDearMr Scrutton o howthe writerdoes not 6-I amreplying to your enquiry aboutthe companymentionedinyourletter refertothe company by i oof 3 May. name. uIn the past we have allowed that company credit,but nowhere near theamount you mentioned, and we found they neededat least one reminderbeforeclearingtheir account.Thb information is strictly confidential and we take no responsibility forhowit is used.Yourssincerelylarah, Wentworth,SarahWentworth Thewriterof th isletterDearMr Cox i sunabl eto suppl ythe information hisIn reply to your letter of ro August, I regret that we cannot offer you any correspondent wantsinformation concerning the company you askedabout in your letter. We because haslittle hehave had very little dealing with them and they have never askedus for knowledge the ofcredit of anykind. comPany.I am sorrywe cannot helpyou inthis matter.YourssincerelyH.F.Ed^6lex J,/H.F. Edgley (Mr) r3,
    • € lcfterto an,9 cnquiry rgent Checking a on P.M ARIOW & C O. LID Jr C oodge S treet customerscreditrating Iondon with anenquiry agency r , c 44 r r allowsyou bemore to aboutthe specific Telephone: (o)zo +44 75836rr9 you details want +44 Fax: @)zo75g7tz5 concerning the p.ma Ernarl: rlow@pma rlow.co.uk customer. 9 April 20-8 Mr S.Spade Credit Investigations Ltdo 1Bird Street londonEl 6TMooAEox DearMr SpadeEI Youwere recommendedto me by a previous client of yours, S.Greenstreet & Co.Ltd. I would like information about FalconRetailersLtd,who have askedus to allowthem open accountfacilities with quarterly settlements and credits of upto f8,000. Would you pleasetell us if this company has had any bad debts in the past; if any legal action has been taken against them to recoveroverdueaccounts; what sort of reputation they have amongst suppliers inthe trade; whether they have evertraded under another name, and if they have,whether that business been subjectto bankruptcy proceedings? has Pleasewould you make the necessaryenquiries,and let us know your fee. Yourssincerely PatMarhu PatMarlow(Ms) Director R edr s t?r ed r InSl and 22]J 5 9 r v AI r 4u 7.1r 5 3 OE l Hf f idoes M s M ar l o w 2 W h y w o u l d th e SW hi chw ordsi nthe€ askif the company supplier wantto letterhave similar aE has*rovedmoney knowifthecompany meaningtotheA before? hasevertraded under following? another name? a latepayments b legalactionto close business the13 4
    • Enquiry agents fl o t BirdStreet reply A. Credit London rr 6rrut Telephone @)zo764t494 +44 l_l;"r.igations Fax+44(o)2o764t965 E m a is p a d e s @ c r e d i t . c o . u k l 26 ApriI2}- Ms Pat Marlow P.Marlow& Co.Ltd 31GoodgeStreet LondonEC4 4EE 8 Itt DearMsMarlow x qJ 3 As requestedin your letter of 9 April we have investigated Falcon g o Retailers Ltd. |D It is a privatelimited companywith a registeredcapital of L10,000 and o consists oftwo partners,David and PeterLorre. has an annual turnover of It f400,000 and has beentrading sinceOctober1993. far aswe know, As neither the companynor its directorshaveeverbeen subjectto bankruptcy proceedings, the companywas involvedin a court case recoveran but to outstanding debt on 17lanuary 20-. The action was brought by [.D.M. Ltd and concerned recoveryof f 3,650, the which Falconeventuallypaid.We ought to point out that I.D.M. broke a delivery contract which accountedfor the delayedpayment. From our general enquiries we gather that some of Falconssuppliers have had to sendthem secondand third remindersbeforeoutstandingbalances were cleared, this doesnot suggestdishonestyso much as a tendencyto but overbuy which meansthe companyneedstime to sellbeforethey can clear their accounts. We hope this information provesuseful.If you have any further enquiries, pleasecontactus. Youwill find our accountfor L475.OO enclosed Yourssincerely S.Ipn/", S.Spade CreditInvestigationsLtd Enc. Account R eg London 312156tHowmany people 3 Havetheyevergone D o e s th e company 7 Which words the inrunFalcon Retailers? out of business? settle balances its on have similar letter a o tr o duedates? meani ng the to f,.Whataretheir 4 Havelegal o following? 5annuasa l e s ? l proceedingsever Whatdoes Spade Mr beentaken against thinkFalconRetailers a researched , the m ? problemis? b get back c unpai d 135
    • Points remember tog 1 Credit is only given if the supplier knows! g that the customerhas a soundreputation,, knows the customerwell, and / or has a reference from a bank or businessassociate of the customer. 2 When asking for credit, saywhy you want it and convinceyour supplier that you will pay on due dates.Statehowlong you havebeen dealingwith the company and offer supportingreferences. 3 When refusing credit, you should give reasons and convinceyour customerthat8 the refusaldoesnot discriminateagainst them in particular.Using generalizations can help,e.g.Weusually/ as a rule/ normally do not ofrer creditfacilities. 4 Mhentaking up a reference, the tell company who you are and who you are enquiring about. TeIIthem the type of credit involved,e.g.bill of exchange,monthly settlements, and let them knowhow much the credit is for.Assurethem that the information will be treated in confidence and that you will reciprocateshould the occasion arise. 5 When writing an unfavourable reply, if you do notwantto comment on a companys reputation, simplywrite thatyou do not give information about any of your customers. Alternatively, be brief, stating onlythe facts asthey concernyou. Do not give opinions or mentionthe name of the company. 6 When writing a favourable reference,state that you have allowed the company credit facilities but do not mention its name. Tell the enquirer the information is given in confidenceand without responsibility.136
    • Banks the UK in tI, r 38 TYPEsoF B A N K 138 Merchantbanks 118 Commercialbanks o, = r38 Private banks 138 c oM M ERc T A L B A N K F A c t L r r r E s r N T H E u K F r38 Currentaccounts -o r39 Depositaccounts = r39 139 Creditand debit cards Standingordersand directdebits ga r39 Loansand overdrafts 139 Administrativecorrespondencet x Ar{ p tEs 14o Op e n rn g curr€ntac(ouni i 14o C h ; n g e6 f srgrt.rl ure 141 R c q u c rtfor a startdrrrg order 141 C a n c e l l .r tron .rcheoue of 142 Advrce an overdr.rwn of .lccount 143 R e p l y a dvrce an overdraw n to of account lM Requertfor an overdr.rft loan or 145 Grantrng loan a 146 Refusing owrdraft an International banking 147 BrL rsOF E X C H A N GE 148 Atypical billof exchangee x A M p r-Es 1 4 9 A d v i s i n g d espatchofabi l l 15o Srllof erthange 15r Advisingderpatchof a right bill r52 Request a bankto forwarde bill to r53 Request a bank lo accepta bill to 154 Non-paymentof a bill 155 D OC U ME N TA R Y C R E D TTS r55 Shippingdocuments 155 The stagesin a documentary credittransaction r56 Standbyletter of credittx A M p rEs 1 5 7 Ad o c u m e nl arycredi tl r;rnracti onl -F ro m th e i mporterrto the r* urn6 bank 158 Ap p l i c a tro form for do< umentary n credrt 159 Fromthe importerr to the exporlert 160 Fromthe confirmrngbank to the exporters r6r Notlficationof documentary credit 16z Fromthe exporterrto the con6rmingbank 163 From the exporters to the importer 164 Fromthe importerrbank to the importers 165 A documentary credil lransaction2 -From the importersto lhe expoders 166 trom the exportercto the importerr Pointsto remember 167 Banksin the UK 167 Internationalbanking
    • Ba nks theUK in 00 the laws which govern the way eachtype of tr T Y PE SOF B AN KI c organization handles its affairs t!!o Thesecanbe dividedi.ntothree main groups: As well aslocalbranches towns and cities, in M ERCHANT BANKS, COM M XR C IA]. BAN KS, the commerciaibanksoffer: a n dp n rv a rr B AN KS(B u l rorN c socrE TrE s, - TELE pHoNx BANKTNG, which providesa which are MUTUAL institutions where people twenty-four-hour servlceand allows can saveand borrow money,primarily to buy a customers obtain detailsof their account, to home,alsoexistin the UK,but many of them transfermoneybetween accounts, paybills, haveconverted public limited companies to etc. and now competewith commercialbanksin - OrtrIu r saNKINc, which allowscustomers offering domesticservices currentlike to make payments, transferfunds,and accounts, loans, MoRTGAGT and insurance, s, access information about their accounts a n dw i l l a c ta sT R U S T Exs nxecurons, and using the Internet.9 like banks. However, FoRx rcN EXcHANGE, discountingservices, negotiating and Private banks documentsare still primarily dealtwith by banks.) Privatebanks ofier similar facilities to the commercialbanksbut tend to be more expensive use. to Merchant banks Merchant bankstend to encourage Iarger C OMME R C IA LB A N K FA C ITITIES N I organizations usetheir services, while to and TH E U K the facilitiesthey offer are simiiar to thoseof the commercialbanks,merchantbanks Current accounts specialize the areasof internationaltrade in and flnance,discountingbills,conflrming the A current accountcanbe openedby anyonein cREDIT sTATUS overseas of customers the UK providedthey can provetheir identity throughcorFrRMrNGHousr s,actingin the with, e.g. driving licence, a international ro NEW ISsux rvranrnt,and in the nurlrorv and card,or passport. The advantages ofthis type oi EuRoBoND mnnrnrs. Theyare, addition, in accountincludebeing ableto make payments involvedin the shipping,insurance, and by cheque. extra securitythe customer, For FORNIGN EXCI{ ANGX M AR KXT S. when paying by cheque, requiredto use a ls cHEquE c.anp, which makesthe bank Commercialbanks responsible the chequepassed, to the for up Iimit statedon the card.This alsoactsas a Commercial banks, alsoknown as cLEARTNG cASH cARDallowing money to be drawn frorr. saNrs, offer similar services are but cashdispensers evenwhen the bank is closed particularlyinterestedin prlvatecustomers, Although cheques can be drawn encouraging them to usetheir current,deposit, immediately, it can take three working days and savingsaccounts, and creditfacilities beforethe amountis DEBITED cREDITIDor tc Theywill iend money, against EcuRrrrEs, s an account. in the form of ovERDRAFTS loans, and pay When depositingcashor cheques, a accounts regularlyby standingorder,and pAyrNG-rN sr.rpis usedto record deposit. the transfercreditsthrough the bank giro system. Its couivrnnrorr.,withthe banksstampano Essentially differences the betweenthe cashiers initials, actsasproofthat the deposi: merchantand commercialbanksarethe was made. lattersavailabilityto customers with their It is possible ovnRDRAw current to a numerousbranchesand lower charges, and account, take out more money than there i.e. -138
    • in credit. Manybanks offer current accounts E Loans overdrafts and 0, =where overdraft facilities are automatically 4included, sometimes at no extra charge. Loansand overdraftsfor large amounts usually = qeHowever,large overdrafts require the bank require a formal agreement.A loan will usuallymanagersagreement. be coveredby E GorrA B Lx cuR rrrE s, N sE e.g. Many companieshave more than one shares, with repaymentspecified the oncurrent account, a Number r account e.g. agreement. the UK,interestis not controlled Infor payingwagesand ovrnHraps, and a by law but by market forces.The money for aNumber z accountfor paying suppliers. Ioan is immediately deposited inthe customers account. the caseof an overdraft, In the customeris given permissionto overdrawDeposit accounts an accountup to a certainlimit.Banksofier several types of or po srrAc co uNT, e.g.instant access accounts, where 9 Administrative corresponden(emoney can be withdrarnm at any time, andnotice accounts.where advancenotification The examplesoverleaf,and others in this unit,has to be given for withdrawal, e.g.thirty, sixty, could also be handled by a telephone caIIto theor ninety days. bank. The bank employeewill in most cases have a template form on-screenwhich he or shewill f,Il out for the customer afterCredit anddebitcards obtaining their passwordor security numberCnrorr cARDS offer credit facilitiesto and details of their business.However,it maycustomers buying goodsor services shops, in be advisablefor the customer to follow up aby mail order,or onthe Internet. Thereis a telephone conversationwith a letter, fax, orlimit to the amount the customer can spend on email sothat there is a written record of themost cards, and credit cardcompanies chargea transaction.basicfee plus monthly interest. Dnnrr cARDS EFTpos use (ElectronicFundsTransferfrom Point of Sale) technology whichallowsthe shoptoswipethe card,transferringmoney out of the customers accountinto theshopsaccount directly. Theincreasinguse of credit and debit cardshas resulted in a decline in the use of cheques.Standing anddirectdebits ordersCustomersmaking regular payments, suchas rent, or mortgage repayments,can askthebank to transfer the money to the payeeon aparticular day every month. A srarprrrrcoRDER a DrREcrorBIt aretwo ways of ordoing this. For a standing order,the amount tobe paid is specifledin advance. a direct Fordebit, the bank pays the amount chargedbythe payee. 139
    • 00tr Opcnlngl <urrcntJ rccount DearMrDaytrr!o I would appreciateit if you could open a current accountfor me under my Inthisexample,the ownerof a fashionshop trading name R & SFashionsLtd.Enclosedyouwillfindtwo specimen isapplying open to a signatures,my ovrn and that of my partner Ms Catherine Sidden.Both current account.The signatureswill be required on all cheques. also enclosea referenceftom I b a nk anager will m Mr StephenYoung,who banks with your branch, and a chequefor f,357.00 acknowledge letter, the with a paying-in slip. tellthecustomerthat the account been has Yourssincerely opened the money and credited, either and Artttz Rolrerts enclosechequebook a or Anne Roberts(Mrs)9 let herknow thatoneis being prepared.UIoggCLE|!xUI Changc of rlgneturc DearMrWinston Thebankmustbe Pleasenote that asfrom t1 August 20- the two signaturesthat will appear informed ofanychange on chequesfor our Number 1and 2 accountswill be mine and that of our of addressnd,ashere, a new accountant,Mr Henry Lloyd,who is taking over from Ms Dianne of a change the in Knibbs. signatures on required cheques. I enclosea specimen of Mr Lloydssignature and lookforwardto your acknowledgement. Yourssincerely t rank Wearutl FrankWearingr40
    • Request a for E !, I DearSir / Madam standingorder d 5 AccountNo.33152 95ol 11o oe We havejust movedto new premisesat the aboveaddress and would like to pay our monthly rent of f,1,574.00 our landlords, to Richards Long,30 Blare & Street,IondonSW71LN, standing order. by Would you pleasearrangefor f 1,574.00 be transferredfrom our No.2 to accountto their accountwith DewlandsBank,Leadenhall Street, Iondon EC2, the rst of everymonth, beginning 1May this year? on would you conf.rmthat the arrangementhasbeenmade. Please Yoursfaithfully 9 Archnr Q.K. tn x (Mr) G.K.Archer !, 3 E. o 6- o ; 3 o, liitffi Cancellation a of cheque IDearMr MathersPlease cancelchequeNo. 17892165001 t1 ,672infavourof B. Gelt Ltd. forThe chequeappears havebeenlostin the postand I am sending to another inits place.B. StewardAccountant t4r
    • a0 E Adviceof.ltr an overdrawnt! Telphone+4a,@)1792 e (ro 4,59oo8 lines)o ercount Facsimile @)r79243t726 +44 Banks prefer tonot EmaiI collisd @wel hcoop.co.u s k sroI cheques because of the embarrassment cancause customer, the it Welsh Bank Co-operative Seaway House ClendowerRoad but if thereis no Swansea arrangement for WestClamorgan overd facilities, raft and 8nru ra r thecheque, the bank in managers opinion, is 8 August20- too large, maybe it9 stopped. the case In of MrR.Hughes Mr Hughes, however,o R.Hughes SonLtd & the bank manager letsg the credit transfer go 21Mead Road through. Naturally, Swansea-g r the managerwould not West Glamorgan lDR 3STEt!x useanemail forthisul confidential transaction. DearMrHughes Account 0556853 No. 01352 I amwriting to inform youthat you now havean overdraft f,1,3 of 58.63 on your currentaccount. Wepassed yourlastcredittransferto Homemakers asyou havea Ltd substantial creditbalance yourdeposit on Ifyou requireoverdraft account. facilitiesonyour currentaccount,Isuggest you contact andwe can that me discuss formalarrangement. a Yours sincerely DaDA co[1,0t DavidCollis Manager Chotmon A C M Conway Dircctotr R M. Lloyd C R Gymre .r9 A R eg"N o w ans er S t.r, WhyhasMr Collis Whatdoesheadvise Whywouldnt the passed Hughes Mr Mr Hughes do if he to bankmanager an use cheque althoughit wantsan overdraft in emai il nthi scase? ledto an overdraft? future?142
    • Replytoadvice E 0, 3 of an overdrawn Il, ffrs!!hcs account = - gq * Sr*u f,fe* Mr Hughes aware is that the credittransfer could have been stopped, zr AAcedRoed.Swrnrer whichwouldhave been West 6l emorgan trr rD r embarrassing him, for Telephone +1.3 :: r-il iS"i41 +i": . ..t j q.!,:t especially hehad as Fax Syvarr,ea r.hr[i ^f{ i .r3- a: . E /radr:/: recently arranged monthlysettlements with Homemakers 10August 20- >seePages 12r-122 andtherehadearlier 9 MrD.Collis beena problem over Manager a credittransfer Il| x tl Welsh Co-operativeBank >seePages -94. 93 3 SeawayHouse E. o GlendowerRoad o Swansea * o West Glamorgan 8RNlTA DearMrCollis Thank you for your letter of 8 August. I apologizefor not being aware that I had a debit balance on my current account. I have now checkedinto this and discoverthat the reasonfor my account being overdrawn was that I had receiveda post-dated chequefor f,1,700.00 from a customer,andthis had not been deared. However,to avoid a repetition I have transferred f 1,500.00 from my deposit account into my current account,andthis should ensure against overdrawing infuture. Thank you for passing the credit transfer to Homemakers despitethe debit balance it created. Yourssincerely Rnbut U"!l* Robert Hughes VAT 215225r 30 ^loWhywasMr Hughes Whyhadnt the Howhashe made o Caccount overdrawn? fr,7oochequebeen sureitwont happen t F cleared? again? o t 5 r43
    • ODE for Request anJ E ov erdraftor loan t!E Inthisletter, Cliff Mr S.{, Sg F i v r i ;da C er di ff c r r r r v , r of Homemakers wants I ri " : I /o r .) ,i lnrX {3 ) l to obtain either an .r .: - ;l - ,:) r ) l overdraft a loanto or i j I i( r , t,,;/:r ;r l .i Ir i ( ",a e xoand f ur nit ur e his factory. asks an He for appointment discuss to 18September 20- th is, ndexp ins why a la heneedsthe money. Mrl.Evans Asit isan imoortant matter, letterismore a BarnleysBank Ltd9 appropriate athan O_ueens Building telephone call,fax,or Cathays Park o e m ail. Cardiff CF19Ul-cg ct E DearMr Evans t! xgt I would like to make an appointment with you to discussan overdraft or a Ioan to enableme to expandmy business. I havebeentesting the market with a new line of furniture assembly kits, and havefound that demandfor thesekits,both hereand overseas, has exceeded expectations. the past six months aloneI havehad over my In half of which I havebeen unableto fulfil because f 6o,ooo worth of orders, of my limited resources. I would needa loan for about 118,000 buy additional equipment and raw to and f,3,000 local materials.I can offer f,8,000in ordinary shares, in government bonds as part security.I estimate it would take me about nine months to repay a loan of this size. I enclose auditedcopy of the companys an current balancesheet, which I imagine you will wish to inspectprior to our meeting. I look forward to hearing from you. Yourssincerely i,,,l i,t it.; i ,.t ,.., t;i t Richard Cliff Director Enc. Whydo esMrCliff What securitydoes What is a balance .r talkabout need an overdraftor he offer? sheet? b enlarge loa n? What evidencedoes Whichwords in the s been greaterthan f,cf What new linedoes he offer to show his letterhavea similar dl meet(orders) . asse55 he want to put on the comPany In a rs mean ing to the I checked (byan market? healthy state? following? accountant)144
    • Ctlil|l;rlu E t, I Mr Cliffand Evans Mr 4 5 IANK p k IARNLEYS havenow hadtheir tn meeting Mr Evans and haschecked t|l.J Otid I ll,l,r1 (.lt.tr hrl Cldrll c t r g{r : ?fii Homemakersaccou nts, Hehasconsidered the t t1ttnl .aa lol,l F lrltta fArl rwrnrObrr6lar rr ul matterof the overdraft . . + a ro l j 9 F trtctl rrr betnl+ar rtrrr or loan,and now is replying. Drtr 27September20- Mr Richard Cliff HomemakersLtd 54-59Riverside 9 Cardiff CFrilW Il| x tl DearMrCliff 3 E o With referenceto our meeting on 23 September, am pleasedto tell you that I 6- the credit for f18,000 which you requestedhas been approved. o We discussedan overdraft,but agreedit would be better if the credit were given in the form of a loan at the current rate of interest (-%), calculatedon half-yearlybdances. The loan must be repaid by 30 June 20-, and we will hold the t8,000 ordinary,sharesand f,3,000local government bonds you pledged as security.We agreedthat the other f2000 would be guaranteedby Mr Y.Morgan, your businessassociate. would appreciateit if you cor.rld I ask him to sign the enclosedguarantors form, and if you could sign the attached agreement. The money will be credited to your current account and will be available from 30 Septembersubject to your returning both forms by that time. I wish you success with the expansion of your businessand look forward to hearingfromyou. Yourssincerely Il"tt t tittL( IanEvans Manager Enc -t <- t i} F.r r r t, F :l ? ttl l l r-r. tr - ( r AIl..&$ar ( r l c h.r aF Dt ltr ce..r,Q |lrrfartWhatdoes Evans Mr I Whichaccountwill r Which words the inofferMrCliff? the loanbepaidinto? letterhave similar aHowisthe interest a Whenwillthecredit meaning the toonthe credit be to beavailablefrom? following?charged? r paidback I a personwho guaranlees something t contract r45
    • F lcfudn3anE ordnfrolo Mr Ellisons company BARNLEYBANK plc S ownsa chainof petrol stations garages. and He IleadOfice Queens BuildingCathaysPark.Cardiff cFr 9u, isalso customer a of Barnleys andhas Bank alsoasked an for Telephone+44(olzg zo 825316 Email ievans@barnleys.co.uk overdraft, in hiscase but Fax+4,4(o)zg 64625 zo www.barnleys.com is the bank notwillingto lendhimthe money. Date 19 November 20- MrP.Ellison9 Ellison & Co.Ltd BridgendRoad oi BridgendCF31 3DF o!r DearMrEllisonE|!xgl I regret to inform you that we will not be able to offer the credit of f 85,000 you askedfor at our meeting on 14November in order to expand your business. Youhave had a f25,000 overdraft this year,and this has partly influenced our decision.The current credit squeeze, which has particularly affected loans to the servicesectorof the economy,was also a factor. May I suggest that you approach a finance corporation asthis type of organization might be in a better position to help in the current financid dimate? I am sorrythat we haveto disappointyou inthis matter, andhope thatwe maybe of more helpinthe future. Yourssincerely . Iaa,Euzns IanEvans Manager Chalrfian B Dlvcnport F I D D r r r fl o4 B I i c x r ny c ,D r c ,c r .s .,A.L.Br odw i ne I c a.N C har dl r Reg No Cardiil 35166r{ I Whydid Mr Ellison 2 Whattwo things I Whatalternative wantthe credit? influenced Evanss Mr does Evans Mr decisionnottoallow suggesttoMrEllison? in credit thiscase?r46
    • International bankingOn page78we lookedat variousmethods of IN LA N Dnrrrs. A crraN B rl r i s onethat i s E !Jpayment usedin trade outsidethe UK.Herewe not accompanied shipping documents. by = 4look in detail at two methods of payment,bills The advantage the exporterofpayment to f ollof exchangeand documentarycredits,and the by bill is that the draft canbe prscouNrE D,way in which they involve banks at home and i.e.soldto a bank at a percentage lessthan itsabroad. value,the percentage being decidedby the current market ratesof discounting SoevenB I t t s OF EX C H AN GE if the biII is markedgo daysafier sight,the exportercan get their money immediately byA s r rr o r x x c H A N Gn(n /E )i s a n o rd ersent sellingit to a bank.Thebank,however,willby the onawrn (the personaskingfor the only discounta bill if the buyer has a goodmoney / exporter) tothe onawrE (theperson reputation.The advantage the importer is forpaying / importer) stating that the draweewill that they are given credit,providedthe bill ispay,on demand or at a specified time, the not a sight draft.amount shown on the bill. If the drawee Bills can be negotiableif they are ENDoRs EDaccepts bill, they will sign their name on the (signedon the back)by the drawer.Forthe faceof it and dateit eseethe example on example,if Mr Panton,thedrawer of the billpage150. on page150, wanted to pay another The bill can be paid to a bank named by the manufacturer,he could sign onthe backof thedrawer,or the draweecan name a bank they bill, i.e.endorseit, and the bill would becomewant to useto clearthe bill p seethe example payableto the personwho owned it. Mr Pantonon paget5o.In the latter case, bill will be the can endorselt specifically, make it payable i.e.kept at the drawersbank until it is to be paid. only to the personnamed on the billWhen the bill is due it is presented the to A otsHoNounrn bill is onethat is not paidpaying bank. Suchbills are saidto be domiciled on the due date.In this casethe exporterwillwiththe bank holding them. pRorESrthe bill,i.e. theywill go to a lawyer, It is possible sendthe bill direct to the to who will, after a warning, take legal actiontodrawee,if they arewell-known to the drawer. recoverthe debt. A s rc H r Brl l o r s rc H T D R AIr i s p a i don Thereis alsoa Cash AgainstDocumentspr es e n ta ti o n . a p o c u m rN T S AGA TN S T In transaction (cao),wherethe documents arepAyME (n/e) transaction, sightbill is Nr the handed overto the importer when cashhaspresented the importer with the shipping to beenpaid.In thesetransactions, course, ofdocuments, and the importer pays there is no bill of exchangeand the importerimmediately,i.e.on presentationor at sight. (buyer)is not given credit. A bi l l p a i d o a y s A F rERs rc H r (o /s ) canbepaid on or within the number of daysspecifledon the bill. Forexample,3odaysafter sight (or3o o/s) meansthat the bill canbe paid thirtydaysafter it hasbeen presented. bill which is Apaid after a period of time is caileda usance. I n a o o c u a n E T SA GAT N ST c E p rA N cE N Ac(o/a)transaction, the bank will ask the draweeto acceptthe bill beforehanding overtheshipping documents. In the UK,bills of exchange drawn orpayablein another country are known asFoREIGN rrr,ls, andthoseusedwithinthecountry in which they are drawn up as 147
    • 00 tr A typicalbill of exchangeJ go t! Bills of exchangevary in layout from company to company.>See paget5o for another example. Number Exchangefor _ _A) At _$)_paythis _B|IIoJ _fu) _to theo of9 / placedtoaccount Currency and value of the bill of exchangein fi.gures Date the bill is completed J VVhen payment is due,e.g.sight; o/s after sight; on a particular date,e.g.rz October 20- 4 If only one bill of exchangeis required,you write sola.If more than one is required,write ,rst; and on the secondline before the words to the orderof,vnlte second sametenor of and date unpaid.This means there aretwo copiesof this bill, i.e.a second(tenor) copy. The drawee only signs (accepts) copy of one thebill. 5 Name of sellerwriting the biil (the drawer) orthe name of anothernominatedperson 6 Write in words the currency (e.g.eurosor yen) and the amount,e.g.fwenf thousand writtenin (r) 7 Left blan-kunlessthere is a specifiedform of words to be wrltten,e.g.payable atthe current rate of exchangefor bankersdrafts in London 8 Name and addressof the person or comPany the bill is being drar,rm i.e.the drawee on, 9 Enterthe name of the company (the drawers name); name and position of the person signingthe bill (the signatory) r48
    • AdvbinS.tcrp.td E Pantontrntrtrcluhlttd of I bill atAAtt-rr,w6,r^ pantmyvorkr lHounrlol ! Mlddlcer Fanron + irw6 zre hntorr xnfur,nB rlr..psoNr +44(o]2o835;oD5 ha*mpaetEdtofu - faesrMr!{ +aa(o)ro83536783 foraDutdto#|s EuArL d.panton@pannran <ouk Ttryrwdrrecth custolsth-UE ageedtf ddelge has been rert- 2nd March 20- Mrs B.Haas 9 B.Haas BV. Heldringstraat 180-2 I I D Postbus54L1 3 Amsterdam1007 g a The Netherlands a a DearMrs Haas OrderNo.8842 Thank you for the aboveorder which has now been completed and is beingsenttoyoutoday. As agreedwe have forwarded our bill, No.l67lfor f.3,850.00,with the documents to your bank, Nederlandsbank,Heldringstraat, Amsterdam. Ttre draft has been made out for payment 30 days after sight, and the documents wiII be handed to you on acceptance. Yourssincerely Donall, Panton DonaldPanton Managing Director A€B,rleed No I h8r}rid 26{rl5I Wh e re a s t he h billof I Wh e n h o u l d th b i l l s e I H o w c an H aas Mrs o exchange sent? been bepaid? o b ta i n shi ppi ng the ! O documents? t r49
    • @ Billof exchange.sI tr He reisthe b illtEE mentionedin the previous letter. has lt already beenaccepted by the drawee,whohas na meda ba nkin Lo ndon B/ENo.1671 March 20- which shewantsto use to clearit. 30 daysafter sight payto the orderof PantonManufacturing ltd Threethousandeipht hu9 value receivedpayable atthe t rate of exchanqe Ba for ssight o o0 tr |!sxoo5 Don^ah?a*tLono CL aging Director E t!tlt x Er o What type of bill is 2 Who isthe drawee? Wh e n m u s t t h e b i l l th is? bepaid? o 5ol150
    • Advising despatch E JtrJ-xl ::.-,-.. of a sightbill !, = F il Qeno fr& I ge Thebillon page 15o Ari a r -l r o - l o l B r u l= = = - = = - wasfor payment thirty =ile days aftersight. the lf Edit View Fermat foob Actions Help supplier wants immediate payment or t"- | does have not timeto check customers the cred itworthi ness, they maysend sightbill, a as nOvice OrderNo.8540 i nthi sexampl e. I 9Dear Jan tnTheabove the for orderis nowon board leda,sailing Copenhagen tomorrowarriving x!,Thursday. l E. oAs there we wasnotimeto checkreferences, drewa sightdraft thetotalamount t4,150 for of o(four 3 g. thousand, hundred fiftypounds one and sterling). wassent Nordbank, This to GarnesVej,Copenhagen, willbe presented youwiththedocuments payment. and to forlf youcansupply business two references yournextordel wewillputthetransaction beforeon a documents against acceptance withpayment daysaftersight. basis 40Best wishes ,Donald PantonManaging DirectorPanton Manufacturing LtdTel:+44(0)20 83530125Fax:+44(0)20 83536783Email: panton@panman.co.uk d. r 51
    • P Requesttoa banktG to forward bill a PantonManufacturingltd ,...,, I FEnTtrno Panton WorksI HounslowIMiddlesexrw6 zeo Exporterssometimes a sk eirbank t o th s TETEP H o N 4( o ) z o8 3 5 3 r z 5 E+4 o forwardbillsto FAcsM I LE I +44(o)zo8353 6783 importersbanks. em arl d . p a n t o n @ p a n m a n . c o . u k 6July20-9 TheManager MainlandBankplco PortmanHouse Great Portland Streetsg LondonWlN 6LLtlE|!x Dear Sirgl Pleasesendthe encloseddraftfor t 4,163.00 l.K.B.ProductsPty and on documentsto the National Australian Bank,632 GeorgeStreet,Sydney, Australia, and instruct them to releasethe documents on acceptance. Yoursfaithfully Don^al/, Pa*ttott DonaldPanton, Managing Director Enc. R egi s ter edN o E n g l a . : 266t35t52
    • Requcsttoabank BJ.I(.B. PRI|BUCIS PIY mentionedin the B r r d g eH o u s e Telepr:one: (oz z796tt +6t previousletter now r8j-g Kent$treFt F a c s r m t l e +{r t ( o ) z ; : 7 g 6 a z writestotheirbankto Sydney Inrarl: lcorey@;kb com.ar-r tellthem to acceptthe NS W 2 ( ) 0 0 bi[. oate 18July20- The Manager National Australian Bank 9 632GeorgeStreet SydneyNSW zooo tl| x t, 3 g DearSir oYouwill shortly receivea bill of exchangef.orf,4,763 and relevant documents o *from Panton Manufacturing Ltd,Hounsloq UK.Would you pleaseaccept othe draft on our behalf,sendus the documents, and debit our account?Yours faithfuily L. Corey, L.Corey J.K.B. Products fty Presrd.nt D F r r uc e M.rrBihg Orfcctor I Tn OIr f,,,r ) i l 0rrcctGrt I R l r ,r i l h T I Btadnr an r53
    • o0 Non-payment of C.l E a bill Panton Manufacturing ltd FAN T t r N t! Pdnton Works I Hounslow I Middlesex I rw5:aqE lf a customer cannot payabill,theyshould r EL EPH oNE +44 (o)zo 8353orz5 inform theirsupplier F AcsI M I LE+44 (o)zo 83536783 immediately >see etu n r l d.panton@panma n.co.u k page gt.When billis a not paidandno notice hasbeen given,the supplier usually writes to the customer before 10April20- protesting bill, the ashere. Notethe9 expression Referto Mrs B.Haas drawer,which means B.HaasBV.o the bank returningthe is Heldringstraat180-2tt billto the drawer.This Postbus5411E expressionalsois used Amsterdam1007o. whena dishonouredE The Netherlandst!x cheque returned. isul Alsonotice that a formal DearMrs Haas protest to be made, is whichmeans the that B/ENo.1671 drawer willcontact a lavtryer handle to the The abovebill for f 3,860.00was retumed to us from our bank this morning debtif payment not is markedReferto Drawer. made withinthe The bill was due on 5April and appearsto have been dishonoured.We are specified time. preparedto allow you a further three days before re-presenting it to the bank, in which time we trust that the draft will have been met. If the account is still not settled,we will have to make a formd protest. We hope this will not be necessary. , Yourssincerely Dorcall, ?anton DonaldPanton Managing Director R egi stere do.E ngl ar: N 266135154
    • Adocumentary E 1 credittransaction + 5 Fromthe N.Z. BUSINESS MACHINES PTY importers the to roo ,So uthS t r eet. W ellingt on Dir ec t or s : M .P e r i m a n n L . FD r o z i n C. . issuing bank I Telephone:(+641 486t7 Fax: (+64)4 3r85 Email: m.tanner@nzbm.co.nz Business N.Z. Machines, of Wellington,New , Zeal and,w hoare importing a3 May 20- consignment of computersfrom Delta 9Ian Close Computers, based the inNewZealandBank U K ,askthei r bankto ETakapunaHouse issue letterof creditin a 5Takapuna Street Deltasfavour. EWellington8 ; o * qDear Mr ClosePlease open an irrevocabledocumentary credltfor t22,000 in favour ofDelta ComputersLtd,Wellingborough, UK.I have enclosedyour applicationform with dl the relevant details completed.Please inform me whenyou have made arrangementswith your agents intofidon.YoursfaithfullyMi/J4^a^eL Tan*t"etMichaelTannerExportManagerN.Z.BusinessMachines PtyEnc.Application for documentary credit rtl
    • u0 form Application.EI tr for docunrentary t!o credit v Hereis a specimen o c6 F application form.The to E s form filled in by Mr 5 T annerfo r is b an kin h New Zealand would be e:. simila rtoth is. .i. s 3 c; = :* E< o gF o *: ca = o99 ,9 e aE E6€ ti s.Hsr S: .E E l! *3 i: @9ut x EE.= .gg a =; G .9 i * O.: Qr ! :ss !- u 5 H! H ;TI ;=tt t! .i v!F a:: o i .9 .E:= E<< o6 o 6.- E GX G =. i * g El i 9 ud i e.E 3 xD euS E bE { U g c I a E o < u ss158
    • Fromthe E !, 5 importers the to GI exporters 5 gc - tuial At the same timeas Fe theyopenthe creditat theirbank, Business N.Z. Machi nes emai l the ir supplier.Noticethat Mr Tanner mentions the confirming bank in London. 9 ltl x !, Officialorder 8851 3 ! o oDearMr Millar 3 E.rVeare placingthe attachedorderfor 12 (twelve)C3001computers, your CatalogueNo. 548.We haveinstructed bank, New ZealandBank,Takapuna Wellington, open an our St, torrevocableletterof credilfort22,000.00 (twentytwo thousandpoundssterling)to covertheconsignment, shipment (ClFWellington), bankcharges. and The creditis validuntil10 June20-.Youwill receivdconfirmation from our banksagents,EastlandBank Ltd,401 Aldgate,London,ECl 2DN, and you can draw on them at 60 (sixty)daysforthe full amountof theinvoice.When submittingyour draft,pleaseenclosethe followingdocuments.Billof Lading(3 copies) (2lnvoiceCIF Wellington copies)AR lnsurancePolicylor 824,000.00(twentyfour thousandpoundssterling)Pleasefax or email us as soon as you havearrangedshipment.MichaelTannerExportManagerN.Z.Business Machines Pty100,SouthStreet,WellingtonPhone:+6448617Fax:+64 4 3186Email:m.tanner@nzbm.co.nz Howdoes 3 Whendoes letter the 5 Whatisthe name of 7 W hydoyou nk thi rO E MrTannerspecify of creditexpire? the confirming banl? the insurance o whichcomputers 4 WhatshouldDelta 6 Whatisattached to amountisgreater o herequires? 5 Computers to get do theemail? thanthe invoice Whatsortof theirmoney? amount? sh i p m ent t his ? is r59
    • !0c FromtheJ E confirmlng bankto a! c +r ArI 9aN Lor d S€.r {oi thto thc crportcr A{ar r aC !N G D T R tC T Ot I P.R r r m er EastlandBank, London, .l( ) 1 dgate l -ondonrc1 i ot Al D rE E croR s R .Li chenM.sc.,BA ., acting NewZealand for 5 D H arri smano r.t.. P .RA kermann B .s c . Bank,now informDelta N -1.R enut Comouters a letter that n?,(N l onc+44 (o)ro ofcredithasbeen 16l r:zrt (ro l i nes ) opened them.The for Fari mi l e +44 {ol )o ?6i 5 l }16 documents in listed the f n:r,i p l rredw ay$P rl !i J^(, C otn (odr letter theessential are ffi eltt{end shippingdocuments. 15May 20-9 Delta Computersltd BradfieldEstateo BradfieldRoadg Wellingboroughgo. Northamptonshire NN8 4HB Et! xEI Dear Sir Please find encloseda copy ofthe notification we receivedyesterdayfrom the New ZealandBank,Wellington, to open an irrevocableletter of credit in your favour for f 22,000which will be available until 10June 20-. You may draw on us at 60 days against the credit as soon asyou provide evidenceof shipment. Please wouldyouinclude the following documents withthe draft: Bill of lading (three copies) Commercial invoice CIFWellington (two copies) AR Insurance certificate for L24,2OO Your draft should include our discount commission which is 5%,and our chargeslisted on the attached sheet. Yoursfaithfully P.Me&+ny P.Medway Documentary Credits Enc.IrrevocableCredit No. 2 1345 16 1r6o
    • of Notification @ !J 5 BARCIJIYSBANK PtC documentary 5 DOCUMENTARY CREDITS DEPARTMENT credit qe BARCIJIYS BANK PLC The notification LONDONIRADE SERVICESCENTRE forwarded Delta to PO BOX 36495, GROI]IIIDFLOOR Computers Eastland by ST SWTTHINSHOUSE B a n kw i l l h a v eb e e n 11112ST SWTTITINS LANE LONDONEC4N 8YB IK s i m i l a r t o t h i so n e . PHOITIE: 7200 3200 FAX NO: 0870 607 3601 020 lnsteadofa form like ANSWERBK:BARCGBG TELEK:418319 t h i s ,m a n yb a n k sa s k importers fax the to SPECIMEN application form dah zoJuly 2oo2 >seepager58to them IRRWOCABLE CR}DIT NO: - EIIDC70844 To be quoted on all drafts and conesltoDdeuce a n d t h e n p r e p a r eh et 9 letter of credit to suitXff,TFICIARY ADVISED TEROUGE ltt the importers x5]fXS AND WADLEY LIMITED !J4J!ERIEY RoAD requirements. 3ir-cF--EY 9 o-r-DoN 8.8. a.rJPLICANT 3iI]I-N LDAL INCORPORATEI)]i] BOX 666, BROADWAY KONG-.IG N AccoRDANCE WITII INSTRUCTIoNs REcEIvED FRoM THE DOWNTOWN BANK & TRUST CO. WE EEREBY ISSUE IN YOUR FAVOUR A DOCUMENTARY CREDIT FOR GBP4106 IFOUR THOUSAND ONE EUNDRED AND SIX POUNDS STERLINGI AVAILABLE BY YOUR DRAFTS!T SIGETiDR lOO% CIF INVOICE VALUE ACCOMPANIED BY TEE FOLLOWING DOCUMENTS: . 1I SIGNED INVOICE IN TRIPLICATE 2l FULL SET OF CLEAN ON BOARD sHrppING COMPANYS BILLS OF I-ADING MADE OUT TO ORDER AND BLANK ENDORSED. MAR(ED "FREIGIIT PAID" AND "NOTIFY WOLDAL INC., PO BOX 666, BROADWAY, IIONG KONG 3) INSURANCE pOLICy OR CERTIFICATE IN DUPLICATE, COVERING MARINE AND WAR IUSKS UP TO BUYERS WAREHOUSE. FOR INvoIcE VALUE oF THE GooDs PLUS 10ZoCOVERING TEE FOLLOWII{G GOOIS: . 4OO ELECTRIC POWER DRILLSTo BE SEIPPED FROM LoNDoN TO EONGKONGCIF!{OT LATER TEAIV 1OTH AUGUST 2OO2PARTSEIPMENT NoTPERMITTEI) TRANSEIPMEI{T NOTPERMITTEDTEIS CREI,IT IS AVAILABLE FOR PRESENTATION TO US UI{TIL 3lSTAUGUST2OO2DOCUMENTS TO BE PRESENTED WITIIIN 21 DAYS OF SHIPMENT BUT WITHIN CREDIT VALIDITY.DRAFTs DRAWN HEREUNDER MUsr BE MABKED "DRAWN UNDER BARGLAys BANK PLC LoNDoN T.S.C. CREDIT NUMBER El1Dc70844WE UNDERTAI(E THAT DRAFTS AND DOCUMENTS DRAWN UNDER AND IN STRICT CONFORMITY WITE TEE TERMS OF TEIS CREDIT WILLBE HONOURED.UNLEss 6TEERWISE STIPULATED ALL DoCUMENTS SEoULD BE ISSUED IN TEE ENGLISH LANGUAGE OTEERWISE THEY MAY BE DISREGARDED.THIS CREDIT Is SUBJEcT To THE UNIFoRM CusToMs AND PRACTICE FoR DocUMENTARY CREDITS (1993 REvrsroNl, ICC PUBLIcATIoNNUMBER 5OO Who will receive the 3 W hat s pec ialc laus e 5 What isthe valueof 8 Who openedthe rO tr is mentionedin the the credit? letterof credit? o money? f. insurance policy? 6 When isthe letterof 9 Cantheexporters o W hichdocume nts are 5 i nvolvedbesides the 4 Cant hegoods be creditvalid until? s h i p t h ec o n s i g n m e n t letterof credit? movedfrom one ship in differentlots? 7 W ho i s t h e i s s u i n g to another? bank? l0 What does the consignment consistof? r6t
    • E t Fromthe exportcrsJ E to the confirming DeltrComput.rs Ltd t! Bradield Est.rteo bank B.adfield Road DeltaComputers now We l l i n g b o r o u g h acknowledge Eastland Northa ptonsh m ire Banks letter, send and N N 84H e themthedocuments Yorrr Ref 15/5120- Tcl ephonc+44 @n933 1643t/ z l 3/ a theyasked andtheir for OurRef NS/OM Fex +44 (o)r9j i rcorrr draft. E mai l mi l l arj Grl nl tacom w w w .del ta com 24May2O-9 MrP.Medway o EastlandBank plcEo 40lAldgate!r london EC1 2DN E |! x DearMrMedwayul Thank you for your adviceof 15May. We have now effected shipment to our customers New Zealandand enclose shipping documentsyou asked in the for and our druftfor L23,lO0which includes your discount, commission,and charges. Will you pleaseacceptthe draft and remit the proceedsto our account at the MainlandBank, Oxford Street,LondonWlA 1AA. Yourssincerely .. t.l N. ^tttffil.t N.Smith SeniorShippingClerk Enc.Bill of lading (3 copies) CommercialinvoiceCIFWellington (2copies) AR Insurance certiflcate for L24.2OO Draft2152/J Feg E ngl and r83r7r3 v Ar 2419 62114162
    • Fromthe exporters E !, to the importers = 4 tr Send UA xha e0 DeltaComputers notify 5 qQ Arial -l 10 - I N .Z. usi ness B Mach ines thattheconsignment is on itswavto them. I vicnaetTanner SniOmentyour of No.8815 order IDearMr Tanner lttThe aboveorderhas beenshippedcleanaboardthe Northern Cross, in Wellington due x q,12 Ju ne. 3 g oThe shipping havebeenpassed the Eastland documents to Bank,London, and will be oforwarded the NewZealandBank,Wellington, willadviseyou. 3 to who c.As agreedwe havedrawnon the Eastland Bankat sixtydaysaftersightfor the netamountof (twentyf 23,100.00 threethousand, one hundredpoundssterling)whichincludes banks thediscount,commission, charges. andNe i l Sm it hSe n i o r hipping S Cler kDeltaComputers LtdWe l l i ngbor ough, 4H B,U K NN8Tel.: +44 (0)193316431121314Fax:+44 (0)l 933 2001 6Email: smithn@delta.com1 When isthe 2 What has happened I How hasthe Eastland rO consignment likely t ot he s hipping Bankearnedmoney o to arrivein New documents? on the transaction? o 5 Z ealan d? r63
    • 00tr FromtheJ E importersbankto Gto the importers TheNewZealand Bank nowadvises N.Z. Business Machines that theiraccount been has Michael Tanner debited, thatthe and documents readyfor are collection.Whenhas he the documents, Mr Ta n ner will beablet o DeltaComputers takedelivery ofthe9 computers. DearMrTanner=GE In accordance yourinstructions 3 May, agents, with of our Bank, Eastland London, acceptedo for a draft f23,100 drawn Delta by Computers on presentation shipping Ltd of documents forgq a consignment to youon 24 May. sentEt!xul Wehavedebitedyouraccount theamount with plusourcharges $NZ350.Thedocuments of arenowwithusandwillbe handedto youwhenyoucall. lanClose NewZealand Bankt 54
    • Adocumentary E !, 5 2 credittransaction 4 5 OQ Arial Fromthe importers the to exporters lii:lll:ii.ut:ii .li:,li:,rl:.i,,r:,ll,l:,,iilll ut utl ii utiiiruiiii.uti,ii.uti:i,r:i: lii T h i se m a i l , f r o m h e t im porters, International Boats, London the in to exporters,Lee Boatbuilders, Hong in Kong,isthe first stepin 9 our second examoleof a documentary credit lrt x transaction. Notethat 0, OrderNo.90103 3 lnternational Boats ask E De a rMr Lee for a certificate origin,of ID ID which they needsince 3 We metyourrepresentative, TomChai,at the EarlsCourtBoatShowin Londonlastweek, Mr they intendto re-export E. and he showedus a number yourdinghies, informed of yourtermsand conditions. of and us the dinghies France, to which is an eu country. We were impressedby the boats,and havedecidedto placea trial orderfor ten of your craft, Notealsothat they will Catalogue NR 17.fhe attached No. order, 90103,is for delivery soonas possible. No. as usetheir banks agents- As Mr Chaiassured thatyou couldmeetany orderfromstock,we haveinstructed us our the confirmingbank-to bank,NorthernCityLtd,to opena confirmed letterof credit f 10,300 your irrevocable for in verifythe qualityof the favou[andvaliduntil1 June20-. boats.31l Our bankinforms thatthe credit be confirmed theiragents, us will by Cooper& DealMerchantlr:, Bank,PekinRoad,HongKong,onceyou havecontacted them.Theywillalsosupplyus witha certificate quality of whenyou haveinformed themthatthe orderhas beenmadeup and they haveinsoectedit. Youmay drawon the agents the fullamountof the invoice 60 days,and yourdraft for at shouldbe presented withthe followingdocuments: Six copiesof the billof lading Fivecopiesof the commercial invoice, London CIF Insurance certificate t10,540 (A.R.) for Certificate origin of Certificate quality of The credit coverthe invoice, will discounting, any otherbankcharges. and Pleasecableus confirming the orderhas beenaccepted that and the dinghies can be delivered withinthe next six weeks. Regards AndyValour International BoatsLtd v! 165,
    • btog Fronn exporters theJtr to the importers Dock Mainway 23,a!o HongKong NorthernCity,who Telephone+852385t62 a re lnternationalBoats Fax+852 662553 bankers, havenow notifiedtheir agentsin Hong Kong, Cooper & Focsimilc lee Bootbuilders Ltd Deal,wh oh avein tu rn advised Boatbuilders Lee that the creditis From J.Lee availab le.Mea nwh ile To Andy Valour,International BoatsLtd,London LeeBoatbuilders have emailedlnternational Fax +44(0)2088344431,9 Boatsconfirming that SubjectYourorderNo.90103 they haveacceptedthex orderand can deliver Date 6May20-cg within six weeks.They Noofpages 2c follow this by sendingaEG fax,advising shipment.xul DearMr Valour OrderNo.90103 We arepleased inform you that the aboveorderhasbeenloadedon to the to MV Orfent, which sailstomorrow and is due in Tilbury on 3 June. The dinghiesand their equipmenthavebeenpackedin polystyreneboxes in ten separate wooden cratesmarked1-10, and bearingour brand ^4. The shipping documents(see attached)havebeenhandedto Cooper list & Deai,Hong Kong,with our draft for f 10,300 60 D/S.This coversall charges at and discounting.Cooper Dealwill forward the documentsto Northern & City Bank,who will adviseyou within the next few weeks. We have supplied the certificate of origin that you askedfor. However,we wonderedif this was for re-exportingpurposes? shouldpoint out that We your customerswould only be coveredby the guarantee if the boats are not modified in any way,asthis would be outsidethe guarantees terms. Pleaseconfirm delivery when you receivethe consignment. Thankyou for your order,and we hope you will contactus again in the future. Yourssincerelv JohnLu, JohnLee Director Whe n is th e Who areCooper & o Wh a t s h i p p i n g Whatrestrictions do Whichwords in the consignment likelyto Deal,and what role document(apart LeeBoat put Builders fax havea similar arrivein London? do they playin the from the bill of ontheirguarantee? m e a n i n g o t he tOt4 How havethe tra nsaction? lading, commercial following? dinghiesbeen W hat willt he invoice, and a s m a l l o p e nb o a t packed? NorthernCityBank i nsurancecertificate) b provided adviseInternational do International c warranTy What does6opls Boatsrequire? d altered Boats? mean ?166
    • Points remember to EE a n k r i n th e U X !, 5 =Therearevarioustypes of bank in the UK 5 gewhich ofier a wide range of banking facilitiesfor domesticcustomers, businesses, andinternationaltrade.I nte rn a ti o n a l b a n k i n g1 Thetwo main methodsusedin settling accounts international trade arebills of in exchange and documentarycredits. These involvebanksin both the importersand the exporterscountries. 92 Bills of exchange can be at sight,i.e.payable on presentation,or after sighf,i.e.payableat a stipulateddatein the future. The exporters can sendthe bill to the importersdirect,or to their bank with the documents, and will obtain either payment on presentationor acceptance againstthe bill.3 The advantages ofbills of exchange that are exporterscan get the money immediately if the bill is discounted, and importerscan obtain credit if the bill is not a sight draft. The disadvantages that a bill ofexchange are may be dishonoured,and it is relatively easy to cancelan order.4 A confirmed irrevocabledocumentary credit cannotbe cancelled, the importersbank and and its agentguaranteepayment.With discountingfacilities,exportersdo not have to wait for their money if the bank agrees that they can draw againstthe credit. Importersareprotectedby the shipping documents, a certificateof inspection. e.g. r67
    • rn 169 TY P E 5o F A G E N G Y oa- 169 169 169 Brokers Confirming Export houses managers U 169 Factors c 17o Distributors o 17o 17o Commercialagents Buying agents o0 17O FI N D I N G A N A G E N T 17o Opening 17o Explainingwhatyouwant 17o ClosingE 171 OFFE R TN G A N A GE N C Y c 171 Openingr5 171 171 Convincingtheprospectiveagent Sole exclusive or agencyul 171 Areato becovered+, 172 Commission c 172 172 Settlement accounts Support of fromthe principal o 172 Delivery oo 172 172 173 Duration ofthe contract Disagreements disputes Delcredere and agents 173 AS K T N G O RA N A G E N C Y F 17) Opening 173 Convincingthe manufacturer 173 Suggesting terms ExAlrPrEs 174 Offerofanagency 175 Agents asking moredetails reply, for 176 Manufacturers reply,givingrnoredetailr 177 Reply an offerof an agency to 178 Requestforanagency 179 Reply a request an agensy to for r8o Offerfrom a buyingagent t8t Reply a buying to agents offer r8z Agentrreport r83 Account sales r84 Points remember to
    • T Y P ESOF AGE N C Y €onfirming houses gl| o =AcENrs and AGE NcIx s usuallyrepresent Cowrrranruc Housn s receive orders from !, 5companies.There many kinds of are overseas, placethem, and arrangefor packing, o. q,representation,but in this unit we deal mainly shipment,and insurance. They sometimes qlt owith buying and selling agencies. However,it f.nanceor purchase the goodsthemselves, 5 e.is usefulto look aswell at other areaswhere then resellthem to the client.Theymay act oN ocompaniesact on behalf of their clients,as coMMrssroNbut i f buyi ngoN rH E rRow N ,thesewill be referredto later. Ac c ou Nr will make a profit on the difference between the ex-works price (the price from the factory) and the resaleprice they quote theBrokers importer.Bnorr ns usuallybuy or sellgoodsfor thelrpRINcInALS companies (the they represent) 10 E rport manatertbut rarely handlethe consignmentsthemselves. Therearevarioustypes of broker: If a companydoesnot havea branch in the- Brokers aEALERI a srocK Er:HANGE / on country it is exportingto, they can appoint an buy and sellshares their clients.The for export manager,who will deal under their clientsaskthe brokerto buy or sell shares for own name but usethe address the company of them, and the brokertakesa commissionon represented. exportmanagers is The job the purchaseor sale. primarily to developthe market for the- Shipbrokers arrangefor shipsto transport exporter, and managersmay chargea fee for goodsfor their clients.They operatefrom this serviceor arrangefor a proflt-sharing their offices, on the BalticExchange one or or scheme with the exporter. of its branches. Seepages > r9?-r99 for more on this topic. Factors- Insurance brokers arrange insurance covER with urpr nwnrrr ns,who pay Facron s can buy and sell or.rrHr tn owrrt compensation the eventof a loss. in AccouNT (i e.intheir ornm names), receive >Seepages zzz-z3gtor moreon this topic. payment,and sendaccounts their to- Commoditlr brokersbuyand sellbulk principals They often representcompanies commodities, cocoa, coffee, e.g. tea, and exporting fruit or vegetables. rubberonthe coMMoDITYMARKnrson Facronrrvc is the process wherebya behalf of their clients.Metal brokersdo the companybuys the outstandinginvoicesof a sameon the Metal Exchange. manufacturers customers,keepsthe accounts,Thereare other exchanges where companies andthen obtainspayment. NoN-RE couRsEusebrokersto representthem, either because lAcroRrNG involvesthe buying up ofthe companydoesnot havemembershipof outstandinginvoicesand claiming the debts. If the buyer (the manufacturers customer)that exchange, they want to usethe brokers or goesbankrupt,the factor has no claim.Inspecialized knowledgeof the market. Buyers, andbrokerscommunicateby sellers, RE couRsErecronrrc, the factorwill claimmeansof telephone, email,cable, fax as or from the manufacturerlf the customercannotprices in the markets tend to fluctuate quickly pay.- evenby the minute in the caseof bullion andforeign currency. r 69
    • .E [)r1r rr)r]r ( )r.. possi bl etermsforthei rpri nci pal s, andwillt r y a to flnd the most competitiveratesin shipping o do Drsrnr suror s buy goodsfrom an exporter and insurancefor them. Buying housesoften t! !t then sellthem on their own accountfor a act on behalf of large stores. t tE nrnfil-ThperkTznf4gsofthisisthatthe Theorderssenttobuyingagentsarecalled .9 E sxporter has only one customer in that market INDE Nrs and are of two types: oer r c, h0 b e c a re fu l i n s e l e c ti n g d i s tri butorsi norderto suppl i er,andcl osE D orspE crrrcrN DENr s, ensurethe best sales. where the supplieris named bythe principal. A distributor is expected keepthe to exporterinformed about the market snrt nn+ FIN D IN G A N A GE N T to sellproductswhich competewith the exporters. Distributorsare alsoexpected to It is possible find an agentthrough to10 havea network in the area,providetraining for the internet, or by advertisingin rnaor technicalstaff,and supply after-sales service ro URNALS. Othermethods includecontacting whenandwherenecessary.Anexportermight governmentDErARTMENTS TRADE oF inyour make enquiriesabout a distributor before own country or the country you wish to export signinga contract. to,or consulting cHaune ns oF coMMERcE, T h e e x p o rte rw i l l re fe ral l enqui ri estothe coN S U LA TE S ,TR A D E A S S ocTA TToNS, oT distributor,supply conditionsof saleto banks.The guide below providessome distributorsand their customers, ofier suggestions ways of dealingwith this kind for promotionai material,and provide of correspondence. rNDEMNrrrEs(insurance) guarantees for on the goods distributorsells. the ( rl ,, r i rt, , L , r , rt ri rr .rp l t-:l rr , Tel i theorgani zati onw hoyouare - Wearea largemanufacturingcompany An o th e rn a me fo ra c o M M E R crA LA GE N Ti s speci al i zi ngi n... a c o MMIS SIo na c l x r.A c ommerci al agent -W eareoneofthel eadi ngproducersof ... nevertakestitle to the goods, neverowns i.e. - You probablyassociate name with the our them like a distributor,but is the intermediary manufactureof chemicals textiles/ busines: / ormiddlemanbetween the exporterand the machines furniture ... / customers. co m m e r cia la g e n tsr e p r e se nta Ir1r1,11f1 ,, !,i l ].rt,,rri i t.. rl t manufacturer,obtaining goodsand then resellingthem. They may buy the goodsfrom - Weare looking an agentwho can for the manufactureron consignment: this means represent in . .. us that they do not own the goodsbut sellthem - Wewouldlike to appoint a soleagent in on for a commission. Commercialagentscan Taiwanto act on our behalfselling. . be solr or ExcLUSIVE acnrrrrs, e the only i - Ouraim isto identiJy established an compd-., agentallowedto sella particularmanufacturers who can represent . . us productsin a specifled country or area. ( - l ( ) tl l . l l r t 1 r rrr" cl osebysayi ngthatyouw oul dbegrat ef ulf c: Bu v rw c AGE N rs ,o rBU y rN GH ousrs,buy anyhel p. goodson behalf of a principal and receivea - Wewould begrateful if you couldsupplytis commission. They are employedto get the best with a list of possible agents 170
    • - Wehopeyou canhelp us,and lookforwardto S ol e or excl uJi ve agen(y GI o hearingfromyou. I- Thankyou in advance your help.Welook for - Wewill not restrictthe agent by offeringa !, = forward to receiving your recommendations. soleagencyaswe have found that this limits c t our own sales and,in addition,issometimes gq o awkwardforthe agent. IO F F E R IN GAN AGE N C Y - Weare offering an exclusiveagency, oOnceyou haveobtainedthe namesand ensuring that you wiII not havecompetitionaddresses prospective of agents,you canwrite from other agentsoperatinginthe areato them direct.Belowis a guidefor specife d in the contract.manufacturers offering terms to a prospective - Wecannotofferan exclusive agencyforageru. Austria at present. However, the agencyis if successful, may reconsider situation in we the thefuture. 10O pe n i n g It shouldbe established whether you are goingTellthe agenthow you obtainedtheir name. to dealwith your agenton a coNsrGNMxNr- Youwererecommended us by the Saudi to sas r s,when the agentwill not own the in TradeCommission London. productsyou sendbut will sellthem for a- Mr Eric Stolemanof the Swiss Export commission, whether you want to supply or Departmenthastold us that .. . the agent as a distributor to re-selltoExplainwho you are. customerson their own account. which case in- Wearean established company the agentwill decideon resalepricesand take manufacturing . .. the profitsfrom the sales.- Weare the leadingexporters ... of - Generally,we not dealon a consignment do- Weareone of the main producers of basis,butpreferour agents buyour to chemicals textiles business / / machines / products ontheir own accountTheyusually furniture ... prefer this methodas it provesmore proftablefor them and allowsthem greater freedomin determining pricesCon v i n c i n g th e p ro rp e c ti v e a g ent Notethat the useof the wordgenerallyintheConvincethe agent that the products you aboveexampleleaves offer opento themake are worth handling and will sell in their negotiation.market.- YouwiII see from our catalogue that we offer a wide rangeof well-designed productswhich A rer to be covered are hardwearing,Iight, easyto use, andfully Make it clearwhat areathe agencyis for. guarantee for oneyear. d - Youwill havesoledistribution rights the for- Ourpricesareextremelycompetitive a for whole of France, which wiII giveyou an product of this quality.Our research showsus excellent opportunillrto establish highly a that thereis a growing demandfor this proftable market. productin your country, we aresurethat and - Initially,we will giveyou a soleagency the for onceour brand is established will become it a Lazioregion, but if sales successful, will are we market-Ieader. extendthat to other regions.- TheZenithzooo is the resultof manyyears - As exclusive agentsyouwillhave no research development, we are and and competitionin Northern Germany, therefore confdent that it wiII quicklyovertake salesof with efectiveselling you shouldbe the competingbrandsat presentavailablein auaranteed substantialreturn. a the Swedishmarket. 171
    • o C o rn rrrrSs ro rr D rl tvtr y tr o @ G Somefirms offerterms straight away in an Exportersshould always allow sometime for tl q initial enquiry while others wait until they unforeseen problemscaused delays, by public t! havehad a replyfromthe prospective agent. holidays, etc.It is alwaysbestto quote a c When offeringterms,you shouldmake them realisticdeliverytime. !, oo soundas inviting aspossible. - Providingthereare no unforeseen delays,we - Theagencyweare ofreringwiII beon a wiII beable to deliverwithin sixweeks from commission basis, aswearevery and receiptof order. interested getting into the Frenchmarket, in - Wewouldlike youto maintainadequate we arepreparedto ofrer5%, plus a stocks our threemain ranges, of bearingin substantialadvertisingallowance. mind that we wiII beableto deliverbetween - As this wiII bea soleagency, areprepared we two andfourweeksof receiving orders.10 to ofer a generous commission as - Deliveryshouldnot take longerthan three compensation, a reasonable and allowance weeks we havethe itemsin stock. if for expenses. - As aninducementtothe agentweappoint,we L)ur.rti onof tl rt corrtr,rtt wiIIbeofferinga n% commission netprices. on Thelength of time for the contractis usually 5 t ttl t rrtl rrt c tt .rrc l r r rt . discussed afterthe agencyhasbeenagreed. - ThecontractwiII befrom t Marchfor one - Orders shouldbesentto us direct for year,and providedbothpartiesagree, be wiII shipment, and we will arrange customers for renewedfor afurther year in 2o-. to pay us Youmay issue with quarterly/ us - Wefeelthatnine monthsshouldbe enough monthly statements account, of which will be time to decide whetherthis arrangementis paid by sightdraft at the bank oJyourchoice likelyto besuccessful, will draw up the and - Customers should pay usdirecton eachsale frst contractaccordingly. by letteroJcredit,and we wiII remityour - Subject our mutualagreement,the to commission bill on submission your by of contract w ill be renewe annuallv. d monthly / quarterlyaccount. Creditis not to be offeredwithout our express consent. s .l rti l ri t,,1l Ltt,.s ",,i ,.,.rrtl nt 5 L r llPe r l ttcr tr t tltt p r t ;111111.,1 Provisionis usually madefor disagreements and disputes. This,too,would not appearin an Prospective agentswill want to know what initial letter,but in correspondence confirming support you will give them in their efforts to the agency, and,of course, the contract. in sellyour products. - In the case disagreement oJ overconditionsc, - Ourproductscarrya one-year guaranteeand payments,the matter wiII besettledby wewiII replace anyfaulty item carriage paid. arbitration. - As you know,our company offersafull after- - Weagreethat disputes overcontracts should salesservice,which essential establishing is in bedecided according Americanlaw. to the reputationof our brands, andyour Note:annrrnATroN is when a neutral customers needhaveno worriesabout spare organizationsettlesproblemsbetweenthe parts or maintenance. principal and agent.A chamberof commerce - Wecan offeryou additional expenses of often actsas arbitrator. or trade association tt5,ooo per annumJoradvertising.This wiII be reviewed after a year and increased we if think saleswarrant it. 172
    • - Asyou know,Germanyis extendingitsDel c re d e re a g e n ts 0Q o Jarmingareaswiththe aidof nv grantsto =DEr cnEprnr AGENTS guarantee acustomers farmers. Wehavemany contacts the in t 5debtdel credere(in the beliefthat) the governmentwhowill directus to large-scale c !,customer can pay the exporter.In other words, farms and enterprises which are in the market oal oif the customer cannot pay the exporter,the for your products. =agent is responsible the debt.Forthis for - Because havealreadyestablished we business oguarantee, agent is paid a prr cRE Rx the Dx relationshipswith hospitalsand clinicsinC O M MISSION. Saudi Arabia,we areconfidentthat we arethe- Wearepreparedto ofreran additional25% bestcompanyto represent you. The del crederecommission you arewilling to if development the healthservice of meansthat guarante customesdebts. e r generous gra.nts clinics to and hospitals have- In additiontothen% commission net on increasedthe demandfor the type of sales, will offerafurther 3%del credere we equipmentthat you manufacture. 10 commission you arewilling to deposit if f,to,oooasa securityto guaranteeaII S uggesti ng terms customers debts. You may want to leavediscussionof terms until you know that the principal is interestedA S K I N G F OR AN A GEN C Y in your request. there is no harm, evenin ButBelowis a guideto correspondence when an initial enquiry in describingthe terms onoffering to act as a manufacturers agent. which you normally operateand askingif they would be acceptable. - May we suggest termson which we theO pen i n g usuallyoperateto giveyou an ideaofthe sortExplain who you are and how you found out of agencycontractwe havein mind?Weabout the manufacturers product. generally represent principals our as- Youwererecommended us by our to exclus ive distributorsfo r Ger many,buying associates,LindusProducts of Lagos, Ltd, who products our own account, on wtth an initial told us that you werelooking an agentto Jor contractrunningfor oneyear,renewable by represent in Nigeria. you mutual agreement. expectmanufacturers We- Weare contactingsuppliers medical of to offeradvertising supportin theform of equipment inyour countrywith aviewto - brochures in German - and English and actingas their representatives in Saudi here catalogues, in return wepromiseour and Arabia.Yourname wasgiven to us by the customers afull after-salesservice andtwo- British Consul leddah.Wealreadyimport in year guarantees all products.Therefore,we on medicalsuppliesfroma numberof diferent would expectafrst-classspare-parts service countries,but particularly interested are in with deliveryforbothproductsand spare the nno machines and scanners you parts within six weeksof receiptof order.We manufacture. wouldpay you directby 4o-day biII of exchange, documents againstacceptance. Ifthis type of agencyinterests you, pleaseConv i n c i n g th e ma n u fa (tu re t contactus sothat we can draw up a draftYouneed to convincethe manufacturer that aqreement.there is a market for their product in yourcountry or area,and that you are the bestpersonto developit. 173
    • .g Offerof an aBen(y E o ltl t! It MrJ ay des c r ibes his company, products, their Clgtnlt.rrl Bririslr tr andthe typeof agency G h he isoffering. Notehow ;vJ r*-r t hesellstheagency. o @ CLAZIER I{(,I,5E CRTIN tANE DF9[]Y DTI ]RI tEL t P r{oN E :+44 (o)r 112 4579o FA csrM| n *..ii (o)r332 S l g7l r1 E rnai l :i a,.rr n,r,f3l6grn rvw ut bri l i chrrygtrl com 4 May 20- S.A.Importers Ltd10 AIManniWay Riyadh o SAUDIARABIA g o DearSirs A E a! x Mr MohamedA1Wazi,of the SaudiArabian TradeCommissionin London, ut informed us that you may be interested in acting as our agent in your country. As you will seefrom the enclosedcatalogue,we are manufacturers of high- quality glasswareWeproduce a wide selectionof products from moderately pricedtablewarein toughenedsmokedglassto ornate Scandinavian and Japanese designed light coverings. We alreadyexport to North and SouthAmericaand the FarEast, and would now like to expandinto the Middle Easternmarket,where we know there is an increasingdemandfor our products. The type of agencywe are looking for will be able to coverthe whole of SaudiArabia.We are offeringaTO% commissionon net list prices, plus advertisingsupport.Therewould be an additional 2.5% credere del commissionif the agent is willing to guaranteethe customers accounts, and he may offer generouscredit terms oncewe have approvedthe account. This is a unique opportunity for someone start in an expandingmarket to and grow with it. Therefore,ifyou believe you havethe resourcesto handle a soleagency covering the areamentioned, and feel that you can develop this market,pleasewrite to us as soonaspossible. Yoursfaithfully Nk^h,o/ar /,eu t NicholasJay Managing Director Enc.Catalogue c Whorecommended What commissions Whatmusthappen I Which words the in .9 the agency British to couldthe prospective the before agentcan letter have similar a a) Crystal? agentearn? offergoodcredit to meani ng the t c/ Where doesBritish Are BritishCrystal terms customers? to following? Crystal exportto at offeringthe W hatdoyou nkMr thi a toget bigger present? ptospectiveagent Jaymeans by b range anyaddit ionalhelp? resources handle to a < speci al soleagency? r74
    • Agentsreply, tn o askingfor more J El S en d details u tl r:l = e !, oq ft o = o I Nicholas Jay 10Jear Mr Jay m-nank you for your letterof 4 May in which you offeredus a sole agencyfor your productsin x tSaudi Arabia. 3 E o=irst,let me say that we can handlean agencyof the type you describe,and we agreethe o 3:emand for good qualitychinawareis increasing here.Howevel beforewe can takeyour offer q,-urtherwe needthe followinginformation:1. Payment accounts. of Wouldcustomerspay you directin the UK, or wouldthey pay us, and we in turn settlewith you afterdeductingour commission? How would paymentbe arranged?Billof exchange, lefterof credit,or bank draft? Wouldwe hold stock or wouldyou supplycustomersdirect?lf you supplydirect,2. Delivery. how longwould it take for an orderto be made up and shippedonce it had been received?3. Advertising. You mentionedthat you would helpwith advertising. Couldyou give us more details?4. Disputes. a disagreement lf arisesoverthe terms of the contract, who would be referredto in arbitration?5. Lengthof contract.How longwould the initialcontractrun? In our view threeyearswould allow us to estimatethe size of the market.lf you can send us this information, and possiblyenclosea draftcontract, couldgiveyou weour answerwithinthe nextfew weeks.Mohamed KassimDirectorS.A. lmportersLtdRiyadhTel:(+966;135669Fax:(+96611 34981m.kassim@saimp.co.saI Whatsortof agency lsMr Kassim 4 H o w l ongdoes he 5 Which words the in rO tr is British Crystal confident about want the agencyto emai have si mi l ar l a TD offering? s e l l i n g ti s h Bri ru n ? meani ng the to rt o Crystals products following? = 5 What isa draJt in hiscountry? contract? a subtracting Does suggest he a b argument methodof payment? c first r75
    • 5 Q Manufacturers tr q, rcply,givingmore 00 t! details ! E t! Mr Jay provides the 6 tr information Kassim Mr o asked andencloses for, a oo draftcontract. C LA ZIE RH OU S E .C R E E NLA N E .D E R B YD E l 1R T T ELE pH oN E :+44 (o)r312 4579o. FA csrMrLE :+44 @)t332 5t977 E mai l :j ayn@crysta com . w w w .bri ti shcrystaI com I 6 June 20-10 MrM.K a s si m S.A.Importers Ltd AlManniWay o Riyadh .9, lU SAUDIARABIA B E t! x DearMrKassim II Thank you for your email. As you requested,we enclosea draft contract for the agencyagreement. Youwill seethat we preferour customers pay us direct,and usually deal to on a letter of credit basis. You would not be required to hold a large stock of our products,only a representativeselectionof samples. can meet ordersfrom the Middle We Eastwithin four weeks of receipt. Advertising Ieaflets and brochureswould be sent to you, but we would also allow f 2000 in the flrst year for publicitl4 which could be spent on the type of advertising you think most suitable for your market. In our other markets we have found that newspapersand magazinesare generallythe best media. The initial contract would be for one year,subject to renewal by mutual agreement. Disputeswould be settledwith reference EUlaw. to If you have any further questions with regardto the contract,or anything else,pleasecontactme. I look forward to hearing from you. Yourssincerely Nkh"o/"a.r tay J/ NicholasJay Managing Director Enc.Draft contract E1 Howwould Wouldcustomers be 4 H ow l ongw oul dthe Which words the in .9 pay customers British from 5.A. supplied run agency initially? letterhave similar a o Crystal? lmporters 5 Whatdoesmutuol meani ng the to 5 o warehouse? agreementmean? following? Whatsortof a typical advertising material b fulfil does Jay Mr offer? c dependi ngon 176
    • Reply an offer to 0q |D of an agency 5 5 o, Thisletteris a replyto an = Allison & Locke Ro o m s zr - 2 8 T el ephone+44(o)2o7636 9o1ol rl 2/314 offer of an agency,but r Irnporters Ltd. o, Ro th e r m e d e Ho u se F ax +44 b)zo 786 gzTt oe the prospective agent is o F e stp :te Str e e t F mni l mal l i son@al l ock co uk = askingfor the termsto c. London Cable ettoc:< London be changed. o r_frc1 IAR 17October20- SrF.Iglasis IglasisLeatherManufacturing SA EnriqueGranados 109 10 Barcelona ttt Spain x !J 3 T DearSrIglasis o 6- We are interestedin the offer you made to us in your letter of 8 October to o act as soleagentsfor your leather goodsin this country. While we agreethat there is a steady demand for high-quality leather cases and bagshere,in our opinion the annual turnover you suggestis too optimistic. We estimate that half the figure you quoted would be more realistic. view of this, the 6% commissionyou offer is rather low, and we In would expect a minimum of 10%on net invoice totals. With regardto payments, feel it would be preferable customers we for to settle with us direct, and we would remit quarterly account salesdeducting our commission.However,we are preparedto leavethis matter open for discussion. FinaIIy, would be willing to hold the stockyou suggest, if there is a we but rush of orders, there may be now we are nearing Christmas, as you would needto shortenthe deliverydateyou quotedfrom six weeksto three weeks from receiptof order. If theseconditionsare acceptable, then we would be pleased take on an to initial one-yearcontractto act asyour soleagents. I iook forward to hearing from you. Yourssincerely M. AL.;..r0r,,, M.Allison(Mr) Director D e.. s i ! Al l r s on B Lo:E I€: i . l .r r i or 8o7o?l i AT i c 2?2 515573Whatsortof agency Which matter is he How longwould the ? Whichwords in theis5r lglasis offering? preparedto initialcontract run? letter havea similar negotiate? meaning o the t oWhyd o eMrA llis on s lf you were Sr lglasis, 5 following?t hinka si xp e rc ent Why might delivery what concessions docommissionrather a the leastamount is datesbe a problem? you thinkyou couldlow? maketo meet Mr r sendmoney terms? ; reduce Allisons 177
    • 6 o Request an for tr o agency 00 |! ! Inthisemail, Brian tr Glough, Director a of t! 5 British motorcycle retail E o ch ain, as k ing is an !o American motorcycle manufactu Hartley- rer, JackMason Mason if hecan Inc., represent themin the UK. Glough Mr describes hiscompany,tells Mr Mason where sawhis he10 product,convinces him that thereisa market, DearMr Mason 6 andsuggests terms. E Wearea largemotorcycle chain retail throughout UK,andareinterested withoutlets the in o theheavytouring bikesdisplayed on yourstand theMilan at Trade recently. Fair s g E Thereis an increasing demand Sales larger hereforthistypeof machine. of machineshave t! |rI x increased morethan70o/o thelasttwoyears, by in especially the30-50agegroup, to which wantsmorepowerful bikes canafford and them. Wearelooking a supplier willofferusan exclusive for who commission agency retail to heavy machines. present represent number manufacturers, onlysellmachines to At we a of but up 600cc, which would compete your750cc, not with 1000cc, 1200cc and models. Weoperate a 10o/o on commission basis netlistprices, an additional delcredere on with 3% if and you commission required, we estimate could expect annual an turnover excess in of t2,000,000. allowance couldprobably Withan advertising we double figure. this usually Ourcustomers withusdirect, we payourprincipals billof exchange a settle and by on quarterly basis. f, Youcanbesurethatourorganization would offeryoufirst-class representation excellent and sales, guarantee success yourproducts thiscountry. and the of in fromyou. I lookforward hearing to Brian Glough Director Glough BookMotorcycles & Ltd Nottingham 3AA,UK NG1 Tel.+44(0)1 5 771 1 53 Fax: +44(0)l1548865 Email:b.glough@gloughbook.co.uk r78
    • Reply a request to o(I o for an agency = J gend !, Mr Mason interested is 5 lfd propo sal, c i n Mr Gl ough s 0l butwouldorefer to him 0e o - E EOII actasa distributor. = o CcI; 10 Eear Mr Glough m -liank you for your emailof 1 March.We were pleasedto hear of your interestin our heavy x o, nuringmachines. 3 T o R,egarding type of agencyyou suggest,I shouldpointout that we neveruse exclusive the or o 3 g. :cmmissionagenciesas we havefoundthat they tend to be ratherrestrictive bothfor :urselvesand our customers. rely on distributors We who buy our productson theirown accountand then retailthem at marketpricesin theircountry. offera 30% tradediscount We cff net list pricesand a further5% quantitydiscountfor salesabove$100,000.Our terms of caymentare 60 D/S bills,D/A if the customercan providetrade references. As far as publicityis concerned,you may be interested hearthat we havearrangedfor an to extensive campaignin Europe.lt beginsnext monthand featuresour heavymachines. We are sendingdealersthroughoutEuropebrochures, and posters,and this will be leaflets, followedup by TV advertising May. in I hopeyou will be interested the terms outlinedhere,and lookfonryard hearingfrom you. in to Bestregards JackMason President Hartley-Mason Inc. Ch i ca g o , lll. (+1) Telephone: 312818532 Fax:(+1) 312349076 Email:j.mason@hartley-mason.com 1 Whydoesnt 3 Whataretheirusual s el di recttothe l rO c Hartley-Mason offer termsof payment? p u bl i c o soleagencies? prices charged a in ri. 4 Which words the in o competitive 3 2 Whatarethey e m a i h a v e s i mi l a r l a p l a n ning do in to meaning the to market Europe? following? continued with 179
    • 6 .9 Ofrerfrom a tr o buyingagent RoyalParade EID t! !t Thisletterisfrom a L. Dobson e*. Ltd & Plymouth g P L r4 8 G ,! buying agent the UK in 6 asking iftheycan Telephone (o)r75: +44 3rz6r tr o represent French a store. Fax +44@)t7523r7o8 o0 Good buying agents EmailI dobson@dobco uk have first-class a knowledge a country, of its products,andthe 8 June 20- mostcompetitive prices Vivas S.A.R.L. on the market goods, for freight, insurance. 138rue Cimarosa and10 For this reason they F-75006Paris oftentakea commission o o n c r r inv oic ev alu e s For the attention ofthe Chief Buyer g ra t her t han T Nvo rc E NE r g V A L UE S . DearSir / Madam E|. E G I am replying to your advertisement in the trade magazine Homecarefor a x ul buying agent in the UK to representyour group of storesin France. My company already actsfor severalcompaniesin Europeand America. We specialize buying domesticappliances in and other householdgoodsfor these markets.We have contactswith all the leading brand manufacturers, so are able to obtain heavily reducedexport pricesfor their products.In addition, we can offer excellent terms for freight and insurance. Our usual commissionis 5%on CIFinvoicevalues, andwe make purchases in our principalsnames, sendingthem accounts settlement. for We can keep you well informed of new products that come on to the market, sending you any information or Iiterature that we think maybe helpful. I have enclosedour usual draft contract for you to consider.I hope you will be interested in our terms, and look forward to hearing from you. Yoursfaithfully l-(.1 t :..4 !. LeonardDobson Managing Director Enc.Draft agreement r8o
    • Replytoabuying oal o agcntsoficr = UI V IVAS S" A" R . L " TheFrench company interested taking in is on !r I g ll L.Dobson Co., is & but 0e o r38rue ClmarosaF-75oo6 Parls I not happywith their o proposal charge to five 5 Tel:(+33) 46 o3r3og | percent commission on Fax (+33) 46 o3r9 3r r ctr invoicedvalues. Email:varennem@vivas.com 23June20- 10 MrLeonard Dobson