Business letters

Business documents are essential because they provide

1 written records of transactions between firms
2 the information which allows firms to keep systems of accounts
3 the information which allows taxes to be assessed

1) Letters of enquiry
They are sent from a potential customer to a potential supplier. They help the former
compare goods, prices, terms and choose the best supplier. The details contained in a letter
of enquiry are :
3 the prices of the goods including discounts and taxes
4 the delivery cost
5 delivery times

2) Quotations
are the reply to enquiries. The supplier may send a quotation provide the potential client with all
the information he needs. The supplier should enclose a catalogue, a current price list or a pro
forma invoice. The pro forma invoice is what the invoice would look like if the customer decided
to order.

3) Orders
are sent once the customer has decided to buy the goods. They state
6 the goods required
7 the catalogue number of such goods
8 the prices agreed
9 the delivery place
10 the delivery date
11 the delivery terms
12 the terms of payment

4) Advice notes, Delivery notes, Consignment notes

An advice note is sent by the supplier to advise his client that the goods have been dispatched.
A delivery note is sent along with the goods and signed by the customer as a proof the goods
have reached him.
The consignment note is used when the supplier uses a shipping company to deliver the goods.
This note states
13 the name and address of the supplier (consignor)
14 the name and address of the customer (consignee)
15 the delivery address
16 the description and quantity of the goods delivered

5) The invoice
Certainly one of the most important documents in business; it is the contract between a supplier
and a customer. Its legal value is prevalent.

6) The credit note

Credit notes are issued by suppliers to customers to reduce the amount charged on invoices
when
- a mistake has been made by the supplier and the charges on the invoice are too high
- damaged goods have been returned to the supplier and have not been replaced
- incorrect goods have been supplied and have been returned to the supplier

7) The debit note

Debit notes are issued by the supplier to his customer to correct the undercharge on nvoices
when
- too low a price has been entered on the invoice
- more goods have been sent than stated on the invoice

8) The statement of account

is a summary of the supplier / customer transactions for a given period, usually a month.

9) The receipt
issued by the supplier as evidence that the customer has paid.

Sometimes, difficulties arise :

1 Orders may be declined

2 Orders may be cancelled
3 Complaints and claims arise because
- deliveries may be delayed
- the goods failing to meet the customer’s specifications are not accepted
- invoices are questioned

Remember : in any circumstance…

… Stay courteous !!!!

 Main rules for writing a business letter

Style
Indented style or blocked style

17 type the letter

18 never use abbreviated verbal forms

USE DO NOT USE

I will I’ll

You should You’d

I have I’ve

Etc.

19 use the conditional tense relatively often for a formal style

Examples :
1 I would like you to…
2 You could interested in …
3 I would recommend…

20 avoid abrupt, sharp, direct expressions

USE DO NOT USE

I would very much like I want

If you prefer/like/ If you want

I would ask you to You must

21 Change paragraph very often; avoid lengthy, complex phrasal structures

Abbreviations
See attached sheet

Structure of a letter

Sender’s address

Recipient’s address

Date

Subject line :
RE :

Opening salutation

Body of the letter

Complimentary close

________________
Signature

Name
Position/job title

Enc

EXEMPLE DE LETTRE

General remarks
 1 Be clear
2 Be courteous in any situation
3 Use spell and grammar checks
4 Check punctuation
5 Be brief and concise
6 Get the names and addresses right
7 Remember to date and sign the letter

How to start

1 Thank you for you letter of June 30th

2 We acknowledge your letter of June 30th
3 Replying to your letter of June 30th
4 With reference to / We refer to / your letter dated June 30th
5 Further to our telephone conversation,
6 We have received your letter of June 30th …
- concerning / regarding our new products
- drawing our attention to
- asking about
- enclosing the brochure
Etc.

How to end

1 I look forward to hearing from you / to hearing from you soon.

2 Please do not hesitate to contact us for whatever detail you may need
3 We hope the enclosed catalogue / price list / will be of help
4 We are looking forward to a prompt answer
5 We stay at your service / disposal / for any further information
6 We are awaiting a speedy reply from you
Etc.
 Practice makes perfect

1) Export

Ref. 123/AXF/EX : HW/eg

March 7th, 2005

The Intercontinental Trading Company Inc.

Caracas Venezuela

Dear Sirs,

We thank you for your order N° 23564 of February 22 nd, which we will complete and ship
according to your instructions.

We would like to draw your attention to the fact that delivery may be delayed since an official
export licence is necessary to get automatic fire arms out of this country and a consular invoice is
required by the customs authorities at the port of destination. We will of course do our best to speed
up the process and will advise you as soon as the shipment is ready for dispatch.

We are handing you herewith our pro forma invoice covering the shipment Cost Insurance
Freight port of destination. We very much regret to tell you that all export transactions are dealt with
on terms of settlement by confirmed letter of credit established in our favor.

We would therefore ask you to make the necessary arrangements and advise us in due time.

Yours sincerely

A.G. Winkelried
Export manager

2)

We have pleasure in enclosing several drawings, the detailed descriptions and the pro forma invoice for
the machines ordered by you and for which we had to undertake a special study.

To get the machines ready for shipment, we require three months at the least and would therefore be
glad to have the order confirmed by you as soon as possible.

Since you want to take advantage of your own shipping facilities, the price as per pro forma invoice is
free on rail and does not include any insurance rate.
After carefully considering your views as regards payment, we are ready to comply with you wish to
settle at 3 months’ date. We will consequently have the documents released against acceptance of our
draft covering the amount of our definite invoice, including all charges incurred according to your
further shipping instructions.

3)

Your order N° 63 for spare parts N°23 – 64 has reached us today and we will have the goods
dispatched by tomorrow afternoon.

We agree to your suggestion regarding payment and have opened an account in your favor on the
understanding that the credit limit amounts to € 100,000. We will send you our statement of account
quarterly, together with our bill covering the amount in question and payable at 30 days from sight.

We thank you for informing us of the new regulations according to which our products will be imported
under quotas next year. We have got in touch with your country’s embassy in Brussels for further
details so as to be able to take up the matter seriously.

4)

Nous recevons ce jour votre courrier du 23 courant et vous en remercions.

Nous nous étonnons que vous n’ayez pas mentionné plus tôt les dispositions actuellement en vigueur
selon lesquelles une licence d’exportation est exigée pour les articles que nous avons commandés. Nous
espérons que vous ferez tout ce qui est en votre pouvoir pour expédier la marchandise comme
convenu. Une augmentation des droits de douane est prévue pour juillet si bien qu’un retard de
livraison entraînerait pour nous des frais supplémentaires.

La lettre de crédit en votre faveur a été établie en date du 18 et vous êtes sans doute maintenant en
possession de l’avis de notre banquier. Le montant de votre facture vous sera versé contre remise de
documents de route.

Nous vous remercions de votre commande et vous prions de recevoir…

5) Agency
January 7th, 2005

Solomon Bros
Watchmakers
New Delhi
India

Dear Sirs,

It has occurred to us that our DIGITIMER, which has proved a major success in the EU, may also
appeal to the Indian public, in bigger cities in particular. Various surveys with Swiss and English
companies closely connected to the Indian market have convinced us that it would be worth getting a
foothold in a country we have not targeted so far.

One of the commercial executives we have been in contact with suggested that yours would be the
right company to introduce our products in India. We therefore take the liberty of asking you whether
you would accept acting as our agents for your country. Exclusive import rights would also need
exploring.

We are enclosing full details about our DIGITIMER together with our illustrated price list. These and the
five specimens we are sending under separate cover will give you an idea of the excellent quality, style
and precision of our 100% Swiss-made product.

We look forward to your reply and remain,

Sincerely yours,

Temporis S.A.
Roger Leurre
Executive manager

6) Reply

We thank you for your letter of January 7 th and for the specimens you were kind enough to submit for
our appreciation. We are glad to say that there seem to be good prospects for your DIGITIMER but we
are anxious not to overrate them especially as the market for your product would be limited to a certain
class of customers.

As far as we can see, the main difficulty in marketing the DIGITIMER will be its price. We therefore
suggest that you give us a free hand in pricing after fixing a reserve price to be agreed on.

Further, we think it might be worth trying to adapt the style of your product to oriental taste. To this
effect, we are enclosing a few photographs showing Indian jewellery and watches specially designed
for our market.

For the time being, we suggest testing the market and propose that you send us a small consignment
of DIGITIMERS together with leaflets and pamphlets so we can contact the retailers. A further step
would be to launch an advertizing campaign in the press. We would be ready to make the necessary
arrangements for this on the understanding that you appoint us exclusive agents for India by formal
contract on mutual agreement.

7)

Nous vous remercions de votre letter du 16 courant. Votre offre nous intéresse vivement et nous vous
serions obligés de nous donner des renseignements détaillés concernant les points suivants :
- quels sont les articles similaires qui existent sur le marché ? Quand ont-ils été introduits ?
Quels en sont les prix ?
- Pouvez-vous nous donner une idée approximative du volume des ventes auquel nous
pouvons nous attendre ?
Pour ce qui est de nos conditions, nous traitons, en règle générale, comme il suit :

 Tous nos agents soumettent leurs relevés de vente mensuellement et nous ne pourrions faire
d’exception dans votre cas
 Nous accordons une commission de 20% mais nous prenons à notre charge les frais de
campagne publicitaire dans la presse locale pour une durée de 6 mois
 Nous laissons à nos agents toute liberté pour fixer les prix

Si vous pouvez accepter nos conditions et si les renseignements obtenus sont favorables, nous serons
disposés à prendre votre offre en considération et à vous accorder nos droits exclusifs pour le Brésil.