Business works on the credit basis. Most of the businessmen take and give an order on credit limit which means that the dealer is given some time by the organization to make the payment. This will also help the dealer to plan his financial transaction as per the credit limit was given.
Request letter for credit limit increase is written by the dealer to the manufacturer to extend the credit limit so that he can do more business with the manufacturer on a long-term basis or to the bank. An increase in income means you will be able to cover an increase in credit card expenses. You may need to provide proof of your new income to get approved for a higher credit limit.
Follow the given tips and sample request letter to increase the credit limit. You can write this letter to supplier, customer, or even to a bank manager for enhancement of credit limit.
Table of Contents
Sample Letter – Requesting Credit Limit Increase Writing Tips
- Firstly it is essential to express your gratitude towards your manufacturer for doing business transactions with you.
- The tone of the letter should be formal
- The letter should be brief and concise
- The wordings of the letter should be polite enough to express your generosity
- Once you are through writing the letter, please recheck the same for amendments, if needed.
Sample Letter – Requesting Credit Limit Increase Template
Use our free Sample Letter – Requesting Credit Limit Increase to help you get started. If you need additional help or more examples check out some of the sample letters below.
To,
_____________
_____________
Date (Date on which letter is written)
From,
______________
______________
Sub:______________________________________________________
Dear ____________,
I would sincerely like to express my gratitude towards you for believing in us and continuing business with us. Our company has shown a considerable growth after joining hands with you. Your credit limit policy is very helpful to us in making our financial transactions smoother.
I would be grateful to you if you could increase the credit limit from _______ to _________ days. This way we will be able to do the business more smoothly which will prove beneficial to both the organizations.
I hope to get a favorable response from you.
Thanking you,
Yours sincerely,
(________________________)
Sample Letter
To,
Mr. Marc William
General Manager
Fashion Plaza
Atlanta
Date (Date on which letter is written)
From,
Robin Thomson
Manager
Fashion Boutique
Atlanta
Sub: Requesting for an increase in credit limit
Dear Mr. William,
Firstly I would like to express my gratitude towards you for having trust in us and doing business with us. It was a pleasure for us to have business partners like you. Your credit limit facility has greatly helped us in making our financial transactions smoother.
Our boutique sale has shown a considerable increase because of the exclusive designs manufactured by your company. I would be very grateful to you if you could enhance the credit limit from 30 days to 50 days. This will help us in improving our business relations and will also be beneficial to both the companies.
I hope to get a favorable response from you.
Thanking you,
Yours sincerely,
_______________
Robin Thomson
Email Format
In business, the manufacturer gives credit to the dealers for a 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 does not have to pay any money for 30 days from the date of receipt of equipment.
This gives the seller 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 an 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.
To: name@email.com
From: name@email.com
Subject: fundraising for children.
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 enhance 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 paymaster and never defaulted on payments to your business. As such, we are sure you will grant us the credit facility as prayed for.
Awaiting your favorable response
Sincerely,
____________
Peter Sellers
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