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Sample Letter – Requesting Credit Limit Increase

Summary: In business, the manufacturer gives credit to their dealers for a certain period. For example, the manufacturer may give 30 days credit to the dealer to make payment for materials delivered to him. This means that the dealer do not have to pay any money for 30 days from the date of receipt of material. This gives the dealer a chance to sell off the material in these days and then pay the manufacturer on the 31st day. This letter is from a dealer to the manufacturer asking for increase in credit as the volume of materials sold by him has increased. This will give him time to recoup some of the money before he makes payment.


Peter Sellers,


Hi Fashion Stores,

6, Baker Street,



Mr James Jackson,

General Manager,

Fashionline Factory,


29th September, ‘10

Dear Mr. Jackson

First of all I would like to take this opportunity to extend my heartfelt thanks to Fashionline Factory for extending credit facility to our store, Hi Fashion Store for the past four years which has helped us a lot.

I am happy to inform you that the sale of your product from our store has picked up thus increasing the turnover of your product. At this juncture we would be obliged if you can increase our credit facility. This will give us the opportunity to do more business which will benefit both our company.

If you go through your records you will find that we have been a regular pay-master and never defaulted on payments to your company. As such, we are sure you will grant us the credit facility as prayed for.

Awaiting your favorable response


Peter Sellers

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