Requesting easier payment terms

United Steel Inc. 648 Eastern Avenue Pittsburgh Pennsylvania USA Dear Sirs, In the past, our purchases of steel pipes from you have normally been paid by confirmed, irrevocable letter of credit. This arrangement has cost us a great deal of money. From the moment we open the credit until our buyers pay us normally ties up funds for about four months. This is currently a particularly serious problem for us in view of the difficult economic climate and the prevailing high interest rates. If you could offer us easier payment terms, it would probably lead to an increase in business between our companies. We propose either cash against documents on arrival of goods, or drawing on us at three months' .sight We hope our request will meet with your agreement and look forward to your early reply. Yours faithfully,		Useful phrases Line 3 This arrangement has cost us a great deal of money. Line 4 This is currently a particularly serious problem. Line 5 ... the difficult economic climate and the prevailing high interest rates. Line 7 If you could offer us easier payment terms, it would probably lead to an increase in business between our companies. Notes Para. 1 State the current payment arrangements. Para. 2 Outline the financial problems affecting the company. Para. 3 Make the request for easier payment terms. Give details of the proposed method of payment. Para. 4 Urge acceptance of the proposal.
Comments The letter lays out the company's financial problem with the current payment terms. It then makes "a request for easier payment terms. It support^ the request by holding out the prospect of a possible increase in business.	Alternative phrases Line 1 Until now, we have normally paid for our purchases of steel pipes from you by . . . Line 4 At the moment, this is a serious problem . . . Line 5 ... because of the poor economic situation and the current high interest rates. Line 10 We hope you will agree to our request. . .