Commercial Portfolio Unit 3
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Jenifer Andrea Garrido Barahona 5th Bilingual #2
Index Cover Unit 3 Credit and Collection letters • Pictionary Credit Letters • Credit Application • Credit Inquiries • Credit Responses • Credit-Granting Letters • Credit-Refusing Letters • Collection Letters o Steps of Collection letters In-House Correspondence • Pictionary • Interoffice memorandum • Minutes Partial Exam Final Exam
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Cover Unit
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Credit and Collection Letters !
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Pictionary !
Adequate • Sufficien, enough • The information that you give me is adequate.
Confidential • Secret, private • The information of that company is confidential.
Discreet • Showing good judgment, prudent. • You always need to be discreet.
Libel • Giving an unjustly unfavorable impression of a person or thing. • Your libel infront of the directors was terrible.
Outstanding • Unpaid • The outstanding of the Mr. Samuels.
Rebate • Discount, return of part of a payment. • I need to rebate the money. !
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Credit Letters Credit involves purchasing and receiving goods without immediate payment. Buying on credit enables a purchaser to acquire desired mechandise even when cash is not currently available. Of course, before granting credit, a company must be reasonably sure of the customer’s financial stability, her ability and willingness to pay. These are checked by the exchange of credit information. These are five types of credit correspondence: 1. Applications for credit 2. Inquiries about creditworthiness 3. Responses about creditworthiness 4. Letters granting credit 5. Letters refusing credit.
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Credit Application A typical form asks for home and business addresses, name of banks and account numbers, a list of other charge accounts, and perhaps, a list of references. Business account Applications are more often made by letter. A new business, for example, may wish to establish a credit line or open account when it places a first order with a Supplier or Manufacturer. A letter of this kind should include credit references (such as banks and other Businesses that have extended credit).
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Credit Inquiries Department stores usually turn credit applications over to a credit bureau. Such bureaus keep files on people and Businesses whose credit references and histories they have investigated. When they determine an aplicant’s credit standing (that is , reputation for financial stability,) they give the applicant a credit rating. It contains all the credit information known about the applicant, and it assures the reference that all information will remain confidential.
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Credit Responses Companies that receive large numbers of credit inquiries often use an inhouse form for responding. This is a way by which they can conrol the information given out and, especially, limit the information to verifiable facts: • The amounts owed and presently due. • Maximum credit allowed. • The dates of the account’s opening and last sale. • The Degree of promptness in payment.
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Credit Granting Letters When all credit references are favorable, a letter is sent granting credit to the customers. Whether for a cunsumer charge account or a dealer open account, the acceptance letter: 1. Notifies the customer of the credit approval. 2. Welcomes the customer and expresses appreciation. 3. Explains the credit terms and privileges. 4. Establishes goodwill and encourage further sales.
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Credit Refusing Letters A letter refusing credit must give the customer a reason; However in an effort to be tactful and to protect references, the reason may be expressed vaguely. The credit-refusal letter must also try to encourage business on a cash basis. Therefore, the tone must be positive and in some way “you-oriented.� It is a good idea to suggest that the customer reapply for credit in the future, thereby letting him know that you desire and appreciate his business.
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Collection Letters Colletion letter is how to demand payment and still keep a customer. It is important to mantain the goodwill. Colletions letters, therefore, should be persuasive rather than forceful, firm rather than demanding. Also collection letters should be courteous, considerate, and concerned, they are usually sent in a series. The time between the letters may also vary, from ten days to a month at the start, form one to two weeks later on. Every letter in a collection series contains certain information: 1. The amount owed 2. How long the bill is overdue 3. A specific action the customer may take.
Collection Letters
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Step 1 The monthly statement reminds the customer of outstanding bills. If it is ignored, it should be followed by a second statement. The second statement should contain a notice (in the form of a rubber stamp or sticker) stating “Past Due” or “Please Remit” Step 2 The second collection message, however, should still be friendly. It should seek to excuse the unpaid bill as an oversight; the tone should convey the assumption that the customer intends to pay. At this stage, too, a stress on future sales, rather than on payment, may induce action. Step 3 The next letter in the series is still friendly, but it also now if firm. While expressing confidence in the customer’s intention to pay, it inquires about the reason for the delay. 1. Fairness 2. Cooperation 3. Obligation Or desire to: 1. Save her credit reputation. 2. Maintain her credit line. Step 4 Ultimately, payment must be demanded. The threat of legal action or the intervention of a Collection agency is sometimes all that will motivate a customer to pay.
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In-House Correspondence !
Pictionary !
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Accessible • Understandable • The memo is accessible for all employees.
Agenda • List, schedule • The secretary has an agenda to control the company.
Dispense • To give out. • We need to dispense this document.
Motion • Proposal • The motion of Mrs. Howard is amazing.
Pertinent • Relevant. • You are a person pertinent. !
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Preside • To act as chairperson, to lead. • Mr. Lincoln is the preside of this company.
Resolution • Statement of a decision or opinion. • Resolution is an important paper.
Transpire • To take place, to happen. • The meeting transpire in Gold room.
Verbatim • In the same words. • The memo was written verbatim. !
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Interoffice Memorandum Memorandums, usually called memos, are the form commonly used for short, relatively informal messages between members of the same organization. The memo provides a simplified, standardized format for communicating information concisely. The many uses of memos include announcements and intructions, statements of policy, and informal reports. The tone of memos tends to be more informal than the tone of other business letters. Memo is typed neatly and contains complete, accurate information, algo maintains a courteous tone no matter how familiar the correspondents may be. The memo is NOT prepared on company letterhead. Some details of memos are: 1. TO: The name of the person to whom the memo is sent. 2. FROM: The name of the person sending the memo. No courtesy title should be used, but a job title. 3. DATE: Indicates in standard form the date on which the memo is sent. 4. SUBJECT: Serves as a title and should briefly but thoroughly describe the content of the memo. It is important to remember that memos are not usually signed. The writer`s initials are typed below the message.
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Minutes Minutes are a written record of everything that transpires at a meeting. They are prepared for the company file, for the reference of those in attendance, and for the information of absentees. Minutes are prepared by a secretary who takes notes during the proceedings. In preparing the minutes, the secretary may include complete versions of statements and papers read at the meeting. The minutes of formal meetings where legal considertions are involved, are made verbatim, that is, they include, word for word, everything that is said or done. Some details of minutes are: 1. The name of the organization. 2. The place, date, and time of the meeting. 3. Whether the meeting is regular (monthly, special, etc.) 4. The name of the person presiding. 5. A record of attendance. 6. A reference to the minutes of the previous meeting. 7. An account of all reports, motions, or resolutions made. 8. The date, time, and place of the next meeting. 9. The time of adjournment.
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Partial Test
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Final Test
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