Page 169 - TESIS ADJUNTA DE BUSINESS

THE CREDIT CYCLE

The credit cycle begins when a person company asks to the others for
merchandise or services which will be paid for at a later preestablish
day. So, we can say that the credit cycle begins with the promise to pay
and the signing of documents which guarantees this promise. Promissory
note, vouchers, etc.

1. A asks B for a credit.
2. B asks for references.
3. A gives B:C, D and E as references.
4. B asks C, D and E for information about A.
5. C, D and E give information about A´s credit standing.
6. B grants or denies credit to.

TYPES OF LETTER TO APPLY FOR CREDIT

1.- Applying for credit
2.- a letter asking for credit references and addressed to the applicant
3.- a letter written by the applicant and addressed to the seller giving
the credit references requesting.
4.- a letter written to the companies giving either favorable or
unfavorable information about the applicant
5.- letter from companies giving either favorable or unfavorable
information about the applicant.
6.- letters grantee or denied credit to the applicant.

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