This document provides information about writing a credit refusal letter. It discusses the different parts and styles of letters, as well as samples. It explains that a credit refusal letter should politely inform the recipient that their credit request has been denied, while leaving the door open for future applications. The document offers tips for an effective credit refusal letter, such as using a courteous tone and being brief. It also provides examples of common reasons for credit refusal like high debt levels or incomplete applications.

2. CREDIT REFUSAL LETTER
Submitted To:
Ma’am Rubab Fatima
Submitted By:
• Syeda Husnaina
• Kainat Raess
• Anum Inayat
• Rubab Naseem
National College of business Administration & Economics

3. CONTENT:
 Letter
 Types of letters
 Types of formal and informal letter
 Styles of letter writing
 Parts of letters
 Examples and samples of letters
 Difference between Hard & Soft letter writing
 Credit Refusal letter
 How to write it?
 Why to write it?
 Reasons of credit refusal
 Conclusion

4. LETTERS

5. LETTER:
A letter is a written or typed message from one person to
another.
Historically, letters were the only reliable means of
communications between two persons at different locations.
The role of letters in communication has changed
significantly since the 19th
century.

6. TYPES OF LETTERS
There are two basic types of letters.
1. Formal Letters
2. Informal Letters.
Formal Letters:
A formal letter is a letter written to a business, a college, or any
professional that are not considered friends or family. These are also called
official letters.
Informal Letters:
An informal letter is a letter written to a friend or family. These
are also
known as personal letters.
Electronic Mail (email):
Messages distributed by electronic means from one computer user
to one or more recipients via a network.

7. Formal LettersINFORMAL
LETTERS
Electronic Mail

8. TYPES OF FORMAL AND INFORMAL LETTERS
Formal Letters
 Cover Letters
 Résumé
 Follow-up-Letters
 Accepting Job Offers
 References
Informal Letters
 Apologies
 Complaints
 Invitations
 Offering Condolences
 Appreciation and Thank
you

9. A BRIEF HISTORY ABOUT LETTER
The first recorded handwritten letter (epistle)
was by Persian Queen Atossa around 500 BC.
The stamped letter we know today came into
being in the reign of Queen Victoria in 1840.
Before this date letters did not have stamps
or envelopes and the receiver of the letter
had to pay on its receipt.
Letters were folded and sealed by wax with
ring or hand seal.

10. STYLES OF LETTER
WRITING
Block Style Semi Block Style Modified Block Style

11. BLOCK STYLE:
A full block style business letter is when all the components of the
letter are aligned at the left margin. Side, top and bottom margins should be 1 to
1 1/4 inches. Font size should be 12 in times new roman.
Semi Block Style:
All text is aligned to the left margin, except the date, attention line, and
complimentary close. Paragraphs are separated by double or triple spacing.
Modified Block style:
In this style we usually put all text aligned to the left margin, except for
the author's address, date, and complimentary closing. All paragraphs we write
in a modified block style are not indented. The author's address, date, and
closing begin at the right. See the following modified block style sample.

12. Block Style Semi Block Style Modified Block Style

13. PARTS OF A LETTER:
1. Letterhead
2. The date of the letter
3. The InsideAddress
4. The Greeting / Salutation
5. Title
6. Introduction
7. The Body Paragraphs
8. The Complimentary Close
9. Signature
10.Writer’s identification

14.  Dear Sir or Madam,
If you do not know the name of the person you are writing to, use
this. It is always advisable to try to find out the name.
 Dear Mr.Asfand,
If you the name, use the title (Mr, Mrs, Miss or Ms, Dr, etc.) and the
surname only.
 Be clear , brief and businesslike.
 Be polite and friendly.
 Write concise and purposeful letter.
 Do not try to impress with you writing.
THINGS TO KEEP IN MIND WHILE
WRITING LETTERS:

15. ENDING A LETTER:
Yours Faithfully
If you do not know the name of the person, end the letter
this way.
Yours Sincerely
If you know the name of the person, end the letter this
way.
Your Signature
Sign your name, then print it underneath the signature.

17. SAMPLES OF LETTERS:

19. DIFFERENCE BETWEEN HARD LETTER
AND SOFT LETTER WRITING
• Hard letters are in the form
of printed
pages.
• Hard letters
or written on
do not need
any electronic mean to read
them.
• Soft letters are in the form
of soft copies.
• These can either be saved
in cd’s, hard disks or flash
drives.
• These can also be
electronic letters.
• Soft copy letters need
electronic means to read
them.
Hard Letter Writing Soft Letter Writing

20. CREDIT REFUSAL LETTER
• A credit refusal letter may be sent from one party to
another during the course of a business, so as to
inform the recipient that his request for credit has
been denied. They should at least take the trouble of
wording the letter in a manner that does not offend
the recipient.

21. AIM OF WRITING A REFUSAL LETTER
• The aim should be to politely refuse the offer for
credit, but also ensure that future transactions are
not affected by this decision. In some cases, the
refusal letter may be sent to an individual who has
been denied credit due to his unfavorable credit
rating, and this is something that also needs to be
clearly stated in the letter.

22. TECHNICALITIES OF WRITING:
There are different efficient ways for appealing credit letter.
• Keep a courteous tone,
• If you must deny a request for credit, leave the door open to
future applications from the same party.
• Tailor your letter to your audience.
• Be brief.
• Be confident and persuasive.
• Be assertive but not overbearing.

23. SAMPLE OF CREDIT REFUSAL
LETTER

25. SAMPLE
20 May 2009,
Name and Address of the Recipient
Dear Mr. XYZ,
This letter is in response to your request made to us about extending you
credit for the amount of $5,000, for the period of 1 month, for the items we
supplied to you.
We regret to inform you that we cannot provide you with the said credit at
the moment. As you are well aware, the state of the economy has led to
severe repercussions for our industry, so we have decided to put our credit
policies on hold for a few months.
You have been our valued customer for a long time now, so we can assure
you that as soon as our credit policies change, you will be immediately
informed. We hope that this does not affect our business relationship in any
manner, and that we can continue our mutually beneficial partnership.
Looking forward to a better future,
Sincerely,
ABC Ltd.

26. REASONS OF CREDIT REFUSAL
LETTER
• There are a lot of reasons in credit refusal from banks and
other third parties. Some of them are as follows.
• Your loan balances are too high
• Your credit balances are too high
• There are a lot of inquiries on your credit card report
• Your income is too low
• You may have too many credit cards

27. • You have a recent collection or public record
• Your last delinquency was too recent
• You have a charge-off on your credit card report
• You have limited credit history
• You are not old enough
• Incomplete application
• You have not been long enough at your current job.
REASONS OF CREDIT REFUSAL
LETTER

28. CONCLUSION:
• As mentioned above, a letter of credit can be of various
types depending on its purpose. It is in the interest of
both the buyer and the seller, to understand all the
different types thoroughly and then pick the one which
serves the purpose completely. And there are a lot of
reasons for credit refusal letter through which we can
refuse credit appealing letter. We have to understand
the reasons for appealing rejection for our credit.