What is a Letter to Supplier Requesting Credit Terms?
A request for credit terms is a simple letter issued by a business to a supplier. The letter is the first contact and does not include details of the credit request.
How to create a Letter to Supplier Requesting Credit Terms
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Why is a Letter to Supplier Requesting Credit Terms Important?
Sometimes, it’s necessary to request longer or different credit terms for paying back a supplier. Typically, this may be because of adverse business conditions or a change in plans. A request for credit terms helps to open communications with a supplier.
When to Use a Letter to Supplier Requesting Credit Terms?
Payments to suppliers are mostly made on the shipment or 30 days after the contract. In either case, the quicker you send a request for credit terms, the better. Suppliers need to maintain cash flow to sustain their operations, so getting this information sooner will make them more willing to help.
What if You Receive a Credit Terms Request as a Supplier?
Generally, if you receive a document for a change in credit terms, keep in mind that the customer is willing to negotiate in good faith. A friendly but formal response often leads to a good outcome.
Conversely, if your customer is late on a payment, you can send them a letter to demand payment.
A request for credit terms letter sample
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