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How to write a letter of credit reference

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How to write a letter of credit reference
September 09, 2018 Anniversary Wishes 1 comment

I am writing to confirm the creditworthiness of ABC Business. During the six years ABC Business has been a customer of our company, all payments have been.

What is bank reference letter?

A bank reference is a letter from bank where you have account. Letter is stating that you are their customer for a certain period of years. A bank reference should also confirm that banking relationship has been acceptable, without any defaults from your part. A bank reference is a standardized document, well known to all bankers, so they will not be surprised when you ask for it. A bank reference should be nothing more than just an informative letter, stating that the bank knows you for certain period of time as a decent customer.

For KYC and due diligence purposes, the reason for the bank reference is to establish that the particular person is an ordinary, economically active member of the society and that the identity and address can be confirmed by an independent, reputable financial institution.

Why bank reference letter needed

Bank reference is requested to avoid fraudulent attempts to register an offshore company in the name of a non-existing or a dead person or in the name of individual, who might just have sold his passport. It is quite improbable that any of such individuals would have a long-standing banking relationship. Therefore, appearance of such individuals as beneficial owners of a new IBC would be a signal to look more closely into the overall circumstances of the registration order.

How do I get bank reference letter

This letter should be in English and should have most of the answers on the following questions:

  1. Full contacts of bank
  2. Date account opened.
  3. Name of person or company having an account and address.
  4. Type of account.
  5. General recommendations as to character, business qualifications, etc.
  6. Name of bank officer and their title.
  7. Date of issuing of letter.

Download template of bank reference letter.

Download sample of professional reference letter.

Click here to contact us for more information

I am writing to confirm the creditworthiness of ABC Business. During the six years ABC Business has been a customer of our company, all payments have been.

Letter to Request a Credit Reference basics

how to write a letter of credit reference


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

This letter serves as a reply to your inquiry regarding Mr. Philip Brown's credit history. We can vouch on his behalf that he does have a good financial record with us and that he is indeed a good candidate for the credit loan he is applied. Enclosed are some of the financial arrangements he has done with us, and, as you can see, he was able to fulfill all of his financial obligations to us satisfactorily.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Sample credit reference letter for a client.

Further things to consider when writing credit letters to banks

Credit Letters

Credit letters are a written commitment by a third party, issued to guarantee payment of goods and services only, when the seller provides the acceptable documentation. Credit letters are usually issued by financial institutions such as banks. However, in some cases, mutual funds and insurance companies may issue these letters under certain circumstances. Credit letters are used to guarantee that the buyers' payments to the sellers will be received for the correct amount and on time. If something comes up and the buyer is unable to pay the seller, the financial institution that issued the letter pays the seller.

Credit letters are usually instructions, so you only need to include basic details. Include details of the seller, the buyer, the receiving bank as well as the amount of money to be transferred. Since this is a formal letter, the tone must be professional. For added security, include a list of terms and conditions, which all parties agree on. Where appropriate and if necessary, mention any requirements from the seller. Let all parties know that the amount can be drawn any time from the day the letter is written to the time it expires.

Letters to Banks

Letters to banks are letters sent specifically to the banks by their customers. The letters can be addressed to bank managers or any other relevant bank official, based on the situation at hand. There are various reasons why you may want to write a letter to the bank. The most common ones include to request for a new ATM card, to ask for funds transfer from one account to another, or to open or close an account. You can also write to inform the bank about a phone number or postal address change. In all these situations, letters to the bank must remain formal and professional.

Before writing letters to banks, you need to make sure that you have all the information the bank may need regarding your account. Use the standard business greetings. If you know the recipient's name, write to him/her by name. Mention the purpose of the letter. Provide all the necessary information such as account number, name, postal and email address, contact number, etc. as registered with the bank. Be specific and avoid writing the same thing twice. Keep the letter simple and concise. Wrap the letter up by calling the recipient to appropriate action.

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Writing a Reference Letter

how to write a letter of credit reference

O- I started an online chat today because of a failed understanding when I called customer service the first time. I’m in the the process of buying a house and my mortgage company needs a reference letter for my payment history. During the online chat, I waited at least 30 minutes until I got connected with an agent and then she kept putting me hold. She then said she would direct my question onto a manager and gave me a “direct” number to call. I called. The number was a fake number which then transferred me to an automated called to set up my new phone. 

- Frustrated. I called the customer service and asked to speak with a manager. I waited 20 minutes to finally get on the phone with the manager. The manager had no clue what I was asking for and kept referring me to print off my statements. My loan office needs a specific reference letter stating I’m in good payment credit with them. The manager then tells me that she cannot email me information because it is “confidential” but if I go to store they will give it to me. 

- I got to the store. In which I learn that one of AT&Ts policies is that employees cannot write anything down on paper. Not even a directv price. The manager had no way to provide me what I needed and was confused because “all employees know that policy.”

- PASSED FRUSTRATED. I go to the local call center hoping to actually talk to someone that can understand English. Nope. They gave me the same numbers I had been calling. 

- Now I’m MAD. I’ve called different numbers and they act like they have never heard of what I am asking for. I get put on hold with no beneficial information after they have been “trying” to research my question.  

BEYOND ANGRY. I’ve been on the phone for 131 minutes and counting now with no help, no solutions, and I keep getting passed to the next person. I know this reference letter can be gotten. SERIOUSLY considering canceling my services here because of not being treated fairly and being talked to like I’m stupid.  


If if anyone else has obtained a reference letter, please point me in the right direction!

This letter is used to request that a positive credit reference be sent to a business.

National Debtline

how to write a letter of credit reference

Money magic: Most banks decide whether to lend you money using a computer program

Money Mail can reveal a secret trick to beat the computers that banks use to reject applications for credit cards, loans and mortgages.

Most banks decide whether to lend you money and what rate they will charge you using a computer program that pores over your debts and borrowing history. Other than pressing a few buttons, humans are barely involved.

This has led to a worrying rise in the number of 'computer says no'-style rejections, with borrowers turned down for unfair reasons such as a late gas bill payment years ago. 

Some customers are refused credit while others miss out on the best rates. 

Unsolved complaints about credit reports jumped by a fifth between April and December last year to 229, compared with 189 in the whole of 2014, figures from the Financial Ombudsman Service show.

And that's just the tip of the iceberg, as the data only includes people who took their gripe further after being fobbed off by a bank or utility company. 

Now we've discovered a little-known rule that can help you avoid unfair computer rejections. All you have to do is write a letter to a credit reference agency such as Experian explaining your version of events.

According to the rulebook used by big banks, this forces a member of staff to look at the application, so you bypass the computer.

Justin Basini, a former executive at Deutsche Bank who now runs credit-checking company ClearScore, says: 'This is a clever way to beat the 'computer says no' software used by many banks. If you try to explain why you were late with a payment, someone will have to hear you out. It means a person will look at your file and make a better decision.'

In the past, you could sit down with your bank manager, talk about your circumstances and explain any problems. Now almost all High Street banks and financial companies use computer programs instead.

Credit reference agencies help the banks decide if you can be trusted to borrow money. These powerful companies record all of your personal details, including defaults on payments, how much money you have borrowed and if you are being chased by debt collectors.

This information is turned into a credit report, which the banks' computers check to assess if you're a risk. A missed payment can prevent you getting a mortgage for up to seven years, and once an answer is given it can be hard to argue your case.

Never mind what the computer says: If you write a letter to a credit reference agency a member of staff must look at the application. Pictured: David Walliams stars as Carol Beer in Little Britain

Money Mail receives hundreds of letters every year about unfair credit rejections. In April 2013, we told how Richard Husband and Lauren Wolstencroft were refused a mortgage because Mr Husband, then 30, had missed his first payment on a Virgin Media contract two years earlier.

It turned out this was because Virgin Media had taken incorrect details — but it took our intervention to get the problem fixed quickly.

You can give your side of the story before getting into a tricky situation by asking for a Notice of Correction to be added to your file.

The industry guide to credit scoring, which is backed by trade bodies such as the Consumer Credit Trade Association, says staff must look at any application with a note on it.

If you were ill, bereaved or going through a divorce, you can explain this affected your ability to pay.

If you were living in a shared house and missed a final energy bill, you could say you were unaware it was due and paid as soon as you realised. Whether these explanations make a difference depends on how harsh the bank's lending policy is and the type of problem with your report.

A couple of late payments are more easily explained than a series of them over a long period of time.

Credit reports are compiled by three agencies: Equifax, Experian and Callcredit. You will need to contact each individually to get a note added to your file.

Before you start, make sure you have seen a copy of the report they hold on you. You can do this by going to their websites.

The agencies will urge you to sign up for pricey monthly payments, but you have a statutory right to buy your credit report for £2. Some agencies offer free trials. Make sure you cancel before it ends if you take up.

A Notice of Correction should not be longer than 200 words and must not be libelous or frivolous. So you can't use it to complain about a company you're in dispute with over a bill.

To get an error corrected, you must contact the firm that put the mistake on your file and the credit reference agency to ensure it is removed. This can take several weeks. 

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A letter of explanation is a word letter that sits on file at the three major credit bureaus; TransUnion, Experian and Equifax. This letter then gets sent out to.

how to write a letter of credit reference
Written by Zuluzuru
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