Often, a company will extend a line of credit to another company. When this happens, the company that extends the line of credit must know some background information about the other company. Most people assume that businesses can be trusted to pay their bills on time, but this is not always true. Your company must obtain credit references for any company it considers for a line of credit. This will help you make a wise decision and prevent future problems.
We have received the name of your organization as a credit reference for [insert company's name here].
Please provide us with any appropriate information about your credit relationship with this company.
The information you share with us will be strictly held in confidence and will be used for credit purposes only. Please reply with the following information:
- Year of first sale
- Highest credit (last 12 months)
- Amount now owed
- Amount past due
- Terms of sale
- Promptness of payment
- Special comments
For your convenience, a self-addressed return envelope is enclosed. Your response is greatly appreciated.