Focus 1. Letter 1 (changing basis of payment)

LETTER 1 (Changing basis of payment)

Satex S.p.A

Via di Pietra Papa

00146 Roma Italy

Attn. Mr D. Causio

Dear Mr Causio,

Thank you for being so prompt in sending the documents for our last order no. 1554. We have accepted the sight draft, and the bank should be sending you an advice shortly.

We have been dealing with you on a cash against documents basis for over a year and would like to change to payment by a 40 days’ bill of exchange, documents against acceptance.

When we first contacted you last February you told us that you would be prepared to reconsider terms of payment once we had established a trading association. We think that sufficient time has elapsed for us to be allowed the terms we have asked for. If you need references, we will be glad to supply them.

As we will be sending another order within the month, could you please confirm that you agree to these new terms of payment?

Yours sincerely

L. Crane

LETTER 2 (Deferred payment)

DVB Industries GmbH

Correnstrasse 250

Munster

Dear Mr Schubert

I am sorry that we were not able to clear your November statement for $3,850 and December invoice No.7740 for $275. We had intended to pay the statement as usual, but a large cash shipment to one of our customers in Australia was part of the cargo destroyed in the fire on the m.v. Tessa when she docked in Bombay in late November.

Our insurance company has promised us a compensation within the next few weeks, and once we have received this the account will be paid in full.

We know you will appreciate the situation and hope you can bear with us until the matter is settled.

Yours sincerely

D. van Basten

LETTER 3 (Unwilling to extend credit)

L. Franksen PLC

Prince of Wales Road

Sheffield

United Kingdom

Dear Mr Franksen

Bill no. BE 7715

I am sorry to learn about the embargo and the problems this has created. However, the above bill has already allowed credit for 40 days, and although I appreciate your offer for an additional 6% interest on the $4,360 outstanding, it is financially impossible to allow a further 60 day credit as I myself have commitments.

I think the following solution might help us both.

You need not add interest on the present amount, but I have enclosed a new draft for $2,180 which is half the outstanding balance, and will allow you 40 days to pay it. But I expect you to pay the remainder viz. $2,180 by banker’s draft.

Please confirm your acceptance by signing the enclosed bill and returning it to me with your draft by return of post.

Yours sincerely

J. Maison

LETTER 4 (Reply to Information on Non-Payment)

Omega S.p.A.

Via Angelo 2153

20121 Milano

Italy

Dear Mr. Giovanni

I was surprised to receive your letter of November 20 in which you said you had not received payment for invoice No. 1028.

I instructed my bank to credit your account in Barnley’s Bank, Cardiff, with the amount of $617 some time ago.

As my bank statement showed the money had been debited to my account, I assumed that it had been credited to your account as well. It is possible that your bank has not advised you yet. Could you please check this with Barnley’s and if there are any problems let me know, so that I can make enquiries here?

Yours sincerely

L. Hughes

LETTER 5 (Final Reminder on Outstanding Balance)

Homemakers Ltd.,

54 Riverside, Cardiff

Dear Mr. Cliff

Account No. 99017

I wrote to you on two occasions, October 21 and November 15, concerning the above account which now has an outstanding balance of $478 and is made up of the copy invoices enclosed.

I have waited three months for either a reply to explain why the balance has not been cleared, or a remittance, but have received neither.

Although I am reluctant to take legal action to recover the amount, you leave me no alternative. Therefore, unless I receive your remittance within the next ten days, my solicitors will be instructed to start proceedings to recover the debt.

Yours sincerely

M. Millar

Encl. invoice copies

LETTER 6 (Inquiry about Financial Status with the view of

Allowing Open Account Facilities)

Credit Investigations Ltd.

1 Bird Street

London E1 6TM

Dear Mr Spade

You were recommended to me by a previous client of yours, S. Greenstreet & Co., Ltd. I would like to get information about Falcon Retailers Ltd. who have asked us to allow them open account facilities with quarterly settlements and credits up to $5,000.

Would you please tell us if this firm has had any bad debts in the past; if any court action has been taken against them to recover overdue accounts; whether they have ever traded under another name, and if they have, whether that business has been subject to bankruptcy proceedings?

Please, make the necessary enquiries, and let us know your fee.

Yours sincerely

P. Marlow