This letter can be used for a new account where credit is established, but with limited information, and you leave the door open for a higher credit line if you can get additional information.

Comments

1. The customer, along with the salesperson, is informed of the fact that an account has been established.

    

   2. The customer is told the credit limit assigned to the account (not all companies want to reveal this information; consider that point when constructing a letter like this).

    

2. The customer is also told that he or she will need to pay CIA (or some alternate method such as COD) on any orders over their credit limit.

    

3. The door is left open to the possibility that the credit limit might be increased.

    

4. Note that there are two major risks associated with COD shipments. The first is that the customer's company check will bounce. The other is that the customer will refuse a COD delivery and you will have to pay to get the goods returned.

    

5. The sales manager may want to help by encouraging the customer to provide the information necessary to increase the credit line. Otherwise, competitors might get the business because they aggressively sought out the additional information necessary to consider a larger line.

Note: As always, your company's situation (market, management risk appetite, etc.) and style will be unique so this can serve as a template to get started.