Credit Inquiries

When a new customer asks for credit, the supplier must first find out whether the customer is creditworthy. To this end, he sends credit inquiries (or: status inquiries) to possible sources of information.

The most important credit information sources are:

1. the customer (he may be asked to furnish information about himself, for example, by filling in a credit application form, or by submitting a copy of his latest balance sheet),

2. the customer's trade references (other suppliers whom the customer has given as references),

3. the customer's bank references (the banks named by the customer),

4. other firms known to have done business with the customer,

5. inquiry agencies (US: commercial or mercantile agencies).

It should be noted that banks give information only to other banks. Therefore, a supplier seeking information from his customer's bank can secure this information only through his own bank.

The inquirer must, of course, assure the firm he is writing to that the information given will be treated confidentially and without responsibility on the latter's part.

Credit inquiries often close with an offer to reciprocate favours. Many businessmen feel, however, that this goes without saying.

Letters requesting credit information, and the envelopes, in which they are sent, are marked Confidential, Strictly Confidential, or Private and Confidential.

Дата добавления: 2015-07-20