Describe the features of a good letter extending credit to a retailer

Answer 1

A good letter extending credit has the following features:
a. It acknowledges a customer's electronic access to product and implies credit extension.
b. It recognizes a dealer for earning credit privilege and gives reason for credit extension.
c. It includes credit terms and encourages taking advantage of discount.
d. It presents a reseller a reminder of product benefits and encourages future business.
e. It includes sales promotion. It assumes satisfaction with initial order and looks confidently for future business.
A timely response is preferable for any business document, but it is especially important when communicating about credit. The Equal Credit Opportunity Act (ECOA) requires that a credit applicant be notified of the credit decision within 30 days of receipt of the request or application. The party granting the credit must also disclose the terms of the credit agreement, such as the address for sending or making payments, due dates for payments, and the interest rate charged.