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- Authorizing Release of Credit Information
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- Terms of Sale: Examples
- Types of Credit: Consumer Credit; Bank Credit; Commercial Credit; B2B; Business to Business
- Written Credit Policy Manual
- Handling Post Audit Claims More Effectively; Post Audit Claims
- Do's and Don'ts of Business to Business Debt Collection, Debt Collection Practices
- Bad Debt Reserves
- Advantages and Disadvantages of Purchasing Credit Insurance
- A Letter of Introduction
- Addressing Chronic Slow Pay Customers
- More about Cash Forecasting
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Authorizing Release of Credit Information
Trade creditors sometimes require a written release from their customer before they will respond to a credit inquiry from a fellow creditor. Below is a sample letter that the customer can be asked to complete and fax back to the new creditor on its company letterhead:
Date
Credit Company Name and Address
To Whom It May Concern:
We have recently applied for open account credit terms with Name of Creditor Company. In connection with this company's standard credit investigation process, we authorize you to release information to this company including:
- Date account was opened;
- High credit;
- Current amount due;
- Current amount past due;
- How far past due;
- Terms of sale offered to us;
- Our normal manner of payment;
- Whether or not your company is a secured creditor;
- Type or form of any security
We release your company from any potential liability resulting from providing this information.
Please contact me if you have any questions or concerns.
Thank you.
Name
Title
With this document, a creditor company will be far more likely to obtain the credit references it needs to make a better informed initial credit decision.
Edited by Michael C. Dennis. Mr. Dennis is a consultant and the author of "Credit and Collection Handbook." Email questions or comments to him at mcdennis13@yahoo.com