Letter Allowing Continuation of Credit

To face the adverse conditions in business, sometimes your suppliers and customers demand your support in form of credit facilities. Write a letter allowing continuation of credit to your customer in response to his need. Inform him about the same by a formal letter which contains the information about the period of extension and the credit limit.

Use the sample given below which will work as the basis of drafting a customized professional letter to your customer stating him your offer in regards with continuation of credit.

Format for Letter Allowing Continuation of Credit

Leisure Hotels
B 15 6th Block
Jackson Street

June 25th, 2014

To :

Sharon Pattinson,
Branch Manager,
State Bank,
1234 Wall Street,
New York.

Dear Ms. Sharon


This is in response to your letter for credit facility. Thanks a lot for three post–dated cheques. The receipts of the same will be sent to you whenever the cheques will get cleared.

I have discussed your situation with my directors and after considering your situation, we have decided to allow your firm to continue to order goods on credit. We can only offer you a new credit limit of $ 7,000 and the trail period of this limit will be six months. We will revise the same if your performance proves encouraging.

Please intimate us your response. If our offer is acceptable then you may start sending in your orders. We hope that this offer makes your business smoother.

Thank you.


Albert Smith

Finance Manager

Click Here To Download Letter Allowing Continuation of Credit

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