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Authorization for Bank to Release Credit Information
Many banks will not provide credit information without written permission from their customer to do so. Therefore, many vendors obtain written authorization prior to sending the bank reference request to a customer's bank. Obtaining written authorization from the owner or officer of the applicant company can make a great deal of difference in obtaining bank references. This procedure usually makes a difference in how quickly credit professionals receive the bank reference. The simplest way to do so is to include the authorization as part of the credit application. An example of an authorization letter is shown below. If the applicant's bank is still unwilling to provide a reference, consider asking the applicant to contact its bank and request that the bank provide the required information.
RE: Letter Requesting Authorization to Release Credit Information
Dear :
Thank you for your interest in establishing credit with this company. Please sign the authorization below to enable us to obtain information more quickly from your bank.
Sincerely,
BANK AUTHORIZATION LETTER
We recently applied for credit with Name of Creditor Company. Please release any and all information about our banking relationship to this creditor upon receipt of a written inquiry from this company.
Thank you in advance for your cooperation.
Signature: ______________________________
Title: __________________________
Date: ________________
Edited by Michael C. Dennis. Mr. Dennis is a consultant and can be reached by email at mcdennis13@yahoo.com with questions or business inquiries