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In transactions on open account the Seller keeps a record of all invoices sent out to the Buyer and once a month (or once a quarter) issues a statement of account as at a certain date. Then the Buyer clears his account and effects payment on statement.
2.1 THE BUYER REQUESTS TO EXTEND CREDIT ON OPEN ACCOUNT TERMS
| MACHINE BUSINESS LTD. | 11b Novinskij bul., Moscow, Russia | ||
| October 27, 20__ PILFORAMA LTD. 18-H, Window Street, Hendon Middlesex L13 Dear Sirs, We have received three consignments against the trial orders placed with you between June and September and are pleased to say that the quality of the goods and the service are equally outstanding. We therefore intend to place an increased volume of orders on a regular monthly basis and would greatly appreciate it if, instead of payment on invoice at 30 days, we could settle at 90 days. Messrs. Bullfinch & Sons have been supplying us on these terms for 3 years past and you may, should you so desire, contact them on the subject. You can also apply for references to our bankers the ß-Bank, Moscow, M. Poryvaevoj 77. These terms would simplify our business transactions with you and for that reason we sincerely hope that you will grant them to us. We can, of course, supply further references, should you deem them necessary. Yours faithfully, A.Vavilova A.Vavilova (Ms) Head of Administration | |||
THE SELLER MAKES ENQUIRY CONCERNING CREDIT STANDING
| PILFORAMA LTD. 18-H, Window Street, Hendon Middlesex L13 | ||
| Our ref. Your ref. November 8, 20__ Fine Bank South Bank House Borough road London SE1 0AA Dear Mrs Castle, Yesterday we received a substantial order from MACHINE BUSINESS LTD. with whom we have had some trial dealings lately. They would like us to supply them on open account terms and have referred us for information on their financial standing to their bankers, the ß-Bank, Moscow, M. Poryvaevoj 77. We should be very much obliged to you if you could contact the Eastern Bank for the information in question. In particular, we would like to know if the financial standing of MACHINE BUSINESS is considered strong, and if we would be justified in providing them open account terms at 90 days to the extent of $45,000 at any one time. Any other information which you could obtain concerning the general reliability of this company and their promptness in settling their accounts would be most welcome and would, of course, be treated as strictly confidential. Yours sincerely, Marina Black Marina Black Manager | ||
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