Dear (Applicant’s or Clients name)
In your introductory paragraph, briefly summarize your reason for writing. If the letter is in reply to a credit application, mention this fact. Explain right away that credit is being denied, canceled or accepted.
In the body of your credit letter, further explain the reason for cancellation or denial of credit to the recipient. If you are unable to extend credit to the applicant, list out the reasons such as low income, longevity of employment, previous credit history, etc. If you are canceling credit to a current customer, clearly explain the reasons for this action.
In the event that you are granting credit, express your pleasure in doing so, along with any other pertinent information. Include the rate of interest, the term of the loan and how much will be applied toward principal and interest.
In closing, thank the recipient for their time, and express your regrets concerning the applicants denial, having to cancel current credit, etc. In the case of granting credit to a new customer, express your pleasure at having them as a customer, and that you look forward to future business.
As you can see, writing a credit letter is fairly basic and straightforward. Hopefully the tips and outline above will help you complete the task efficiently.