Status Inquiries

After the trade reference has been provided and the status inquiry made, the completion of the transaction depends upon the reply that is given by the referee to the status inquiry. The referee should take great care while drafting a reply to letter of status inquiry. As far as possible specific figures should not be mentioned and only general statements about the creditworthiness of the party should be made. If an unfavorable reply is to be sent it should be based on the personal experience of the letter writer or that of the firm and not on hearsay. The rely to the status inquiry should not read like a letter of instructions. It should not attempt to plead or persuade the granting or refusal of credit. It should merely indicate what the writer of the letter would have done in the circumstances.