Monday, December 7, 2009

What is Credit Letter

Credits is a promise of future payment in kind or money given in exchange for present money, goods or services. The individual who intends to ask for credit should establish basis of trust and confidence with the creditor. If upon the evaluation of the credit, the person applying for credit has the capacity to pay, the creditor may grant the request.

The creditor should have basic criteria such as capital, capacity and character.

See sample credit letter.

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