Replying to a request for direct terms of payment

Ms. Coates Purchasing Manager
Belle View Textiles pic 6
West Way Belle View
Manchester UK

Dear Ms. Coates,
Thank you for your letter of 2 October requesting payment against documents for contract nos. 482 and 483.
We are pleased to say that we agree to your request. We wish, however, to make it clear that in future transactions, direct payment will only be acceptable if the amount involved for each transaction is less than GB£1,000 or the equivalent in Renminbi. Should the amount exceed that figure, payment by letter of credit will be required.
We would like to say that this exception is allowed only in the light of our long and mutually beneficial association.
Yours sincerely,

Useful phrases
Line 3
We are pleased to say that we agree to your request.
Line 4
Direct payment will only be acceptable if the amount involved for each transaction is less than . . .
Line 8
This exception is allowed only in the light of our long and mutually beneficial association.
Notes
Para. 1
Identify the references and the request.
Para. 2
Agree to the request. Make it clear that direct terms of payment will only apply below a fixed cash limit for future transactions.
Para. 3
End the letter politely, giving the reason why the concession was made.


Comments
The vendor accepts the proposal with reservations. Direct payment is not as secure for the vendor as a letter of credit. Such terms should only apply in the case of a trusted customer and when small sums are involved.

Alternative phrases
Line 1 We are in receipt of. . .
Line 3 We are glad to say . . .
Line 4 ... we will only accept direct payment terms if . . 
Line 6 Should the amount be more than . . we will require payment by letter of credit.
Line 8 ... only because of. . .








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