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Here is another example of taking up references, this one from Satex, the Italian sweater manufacturer we met in previous units. In the letter at 6.3.4, their customer, F. Lynch & Co., asked to be allowed to settle their accounts by 40-day bill of exchange, documents against acceptance. Lynch &. Co. offered references, which Satex are taking up.
Satex S.p.A. Via di Pietra Papa, 00146 Roma Telefono: Roma 769910 Telefax: (06) 4815473 Telex: 285136 Mr. T. Grover 4 July 20— Grover Menswear Ltd. Browns Lane Rugeley Staffordshire WS151DR Dear Mr. Grover, Your name was given to us by Mr. L. Crane, the chief buyer of F. Lynch & Co. Ltd., Nesson House, Newell Street, Birmingham B3 3EL, who have asked us to allow them to settle their account by 40-day draft. 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 enough to meet credits of up to £3,000 in transactions. Thank you in advance for the information. Yours sincerely, D. Causio |
Referee's reply
Note how Mr. Grover says he wilt take no responsibility for how the information is used, and reminds Satex that the letter is confidential.
Grover Menswear Ltd. Browns Lane, Rugeley, Staffordshire WS15 1DR Telephone: 08894 31621 Telex: 246181 Mr. D. Causio 9 July 20— Satex S.p.A. Via di Pietra Papa 00146 Roma ITALY Dear Mr. Causio, We have had confirmation from F. Lynch & Co. Ltd. that they want us to act as referees on their behalf, and can give you the following information. We have been dealing with the firm for ten years and allow them credit facilities of up to £2,000, which they only use occasionally, as they prefer to take advantage of our cash discounts. However, we would have no hesitation in offering them the sort of credit you mentioned, i.e. £3,000, 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 remind you to consider it as confidential. Yours sincerely, T. Grover |
Questions
1. What expression is used to mean for them?
2. How does Mr. Grover explain he will not be liable for Satex's decision?
3. Why does F. Lynch & Co. not use the full credit facilities?
4. What did Mr. Grover do before contacting Satex?
5. What word is used to say the information is private?
Negative replies to enquiries about credit rating
1. In this letter, the writer refuses to reply because he does not have the company's permission. | Dear Mr. Stevens, I am replying to your letter of 10 August in which you asked about one of our mutual business associates. I am afraid I cannot give you the information you asked for, as it would be a breach of confidence, and you, as one of our customers would appreciate this. If however, you can get the firm to write instructing us to act as their referee, then we may be able to help you. Yours sincerely, |
2. The reply in this case is unfavorable. Notice how the writer does not refer to the company by name. | Dear Mr Scrutton, I am answering your enquiry about the company mentioned in your letter to me of 3 May. We have in the past allowed that company credit, but nowhere near the amount you mentioned, and we found they needed at least one reminder before clearing their account. This information is strictly confidential and we take no responsibility as to how it is used. Yours sincerely, |
3. The writer of this letter is unable to reply because he has little knowledge of the company. | Dear Mr. Cox, In reply to your letter of 10 August, we cannot offer you any information concerning the firm you asked about in your letter. We have had very little dealing with them and they have never asked for credit of any kind. Therefore any information we gave would be of no relevance. Yours sincerely, |
Letter to Enquiry Agent
Checking on a customer's credit rating with an Enquiry Agency allows the seller to be more specific about the details he wants concerning his customer.
P. Marlow & Co. Ltd. 31 Goodge Street. London EC49 4EE Telephone: 071 583 6119 Registered in England 221359 Fax: 071 3S37123 VAT240722S03 Mr. S. Spade 9 April 20— Credit Investigations Ltd. 1 Bird Street London El 6TM Dear Mr. Spade, You were recommended to me by a previous client of yours, S. Greenstreet & Co. Ltd. I would like information about Falcon Retailers Ltd who have asked us to allow them open account facilities with quarterly settlements and credits of up to £5,000. Would you please tell us if this firm has had any bad debts in the past; if any court action has been taken against them to recover overdue accounts; what sort of reputation they have amongst suppliers in the trade; whether they have ever traded under another name, and if they have, whether that business has been subject to bankruptcy proceedings? Please would you make the necessary enquiries, and let us know your fee, so that we can send you a cheque? Yours sincerely, P. Marlow |
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