Unit 3 Letters of Credit and Status Inquiry.ppt

Unit 3 Letters of Credit and Status Inquiry I. Aims Requirements 1.To enable students to know about the importance of credit inquiry. 2.To enable students to know about how to make credit inquiry 3.Help students to learn and master key words, phrases and sentence patterns about credit inquiry 4.Help students to learn and master how to write a business letter about credit inquiry II. Contents Importance of credit inquiry Ways of making credit inquiry Studying letters about credit inquiry Structure of letters about credit inquiry Importance of credit inquiry. Status enquiries, often referred to as “Banks” references, have been with us for more than a century. Although other sources of relevant information have become available more recently (such as credit reference agencies), many businesses still regard status enquiries as a useful source of information about those with whom they may wish to do business Credit and status enquiries are those written communications in which traders request information concerning the financial position, credit, reputation and business methods of other firms. In business, it is of utmost importance to obtain all the information possible concerning the firm one is about to enter business with. Before you start to do business with partners in foreign countries who are far away from you, if you don’t know him or her very well, then you should do credit inquiry about him or her in case you are cheated by him or her. 2. How to do credit inquiry There are various ways of obtaining such information. Instead of applying to a business friend, traders sometimes apply to (1) banks (2) offices abroad (3)through commercial chamber (4) professional offices on credit inquiry The information obtained from banks or chambers of commerce is generally most reliable. However, a bank will not give information direct to an unknown trader unless the enquiry is from one of its fellow banks. Therefore, when taking up a bank reference, the trader m