Status Enquiry Status enquiries are those written` communications in which traders request information concerning the financial position, credit, reputation, business methods and management capacities of other firms.

Teaching Objectives:  To help students know the necessary of enquiry for the client’s (esp. the buyers’) credit status before doing business, while keeping the business relations  To let students how to obtain the required information of the cooperated partners as well as the basic requirements in language expression  To Enable the student to be familiar with the structure of letters in enquiry of status as well as the contents

Teaching focus: 1. Structure of letters of status’ enquiry 2. Typical sentences of the kind letters 3. Analysis on the sample letters

Writing Background  The information we want to get in status enquires is as follows: The financial position (assets and liability) The credit The reputation The business methods The management capabilities  The channels to obtain the information of status : Banks The chamber of commerce / Commerce agencies Enquiry companies

Obtaining information Making an objective analysis on 3 “C” principles: Capital, Capacity, Conduct Making an acknowledgement in very polite manner Steps of enquiries for credit status

Typical way in writing  Letters enquiring status are more or less stereotyped. Some large firms make their enquiries on specially printed forms containing the questions they would like to have answered.  Status enquiries are generally headed “Confidential” or “Private and Confidential.” These words are also written on the envelope.

Typical way in writing  Traders asking for information must bear in mind that they are asking a favor and therefore should write in polite and appreciative or terms.  When the information is received, be it favorable or unfavorable, a suitable letter of acknowledgement and thanks must be sent.  The tone is required to be more than common courtesy.

Specimen letter 1  Private & Confidential  Dear Sirs,  We have received a letter from the Auto Engineering Co., Ltd. In Nigeria, expressing their desire to enter into business relations with us on condition that we allow them a standing credit ( 定额贷款） of USD 5,000 to start business. As stated in their letter, their reference is the National Bank of Nigeria, Ibadan.  It is our principle to have more connections aboard; however, for safety’s sake, we should like to know the financial and credit standing of the above-mentioned company, especially because they have requested us for a standing credit, which we seldom grant to new customers.  We should be very pleased if you would assist us in this respect, and we can assure you that any information you may give us will be treated in absolute confidence.  Yours sincerely,  China National Import & Export Corp  Manager

Specimen letter 2  Private & Confidential  Dear Sir ，  Our client, the China National Import & Export Corp., have asked us for information about the Auto Engineering Co., Ltd. in Ibadan, Nigeria as the latter would request a standing credit of USD5,000 to start business.  We know the Auto Engineering Co., Ltd., but our knowledge of the company is limited to a few months trading with a firm in Shanghai on an L/C basis. We should, therefore, like to know whether or not their financial and credit standing are sound so that we may respond to CHIEC.  The only reference as given by the Auto Engineering Co., Ltd. is their banker, the National Bank of Nigeria, Ibadan. We shall be most grateful for any information you can obtain for us.  Yours sincerely,  The Bank of China Shanghai Branch  Manger

Specimen letter 3 (A favorable reply to letter 1 )  Private & Confidential  Dear Sirs,  We have now received from the National Bank of Nigeria the information you asked for in your letter of April 4. The Auto Engineering Co., Ltd. you mentioned is a private company run as a family concern by three brothers and was founded fifteen years ago. It enjoys a good reputation. As far as our information goes it is punctually meeting its commitments and a credit in the sum you mention would seem to be safe.  This information is confidential and is given without any responsibility on our part.  Yours faithfully,  Barminster Bank Ltd.

Specimen letter 4(An unfavorable reply to letter 1)  Private & Confidential  Dear Sirs,  We have completed our enquiries concerning the firm mentioned in your letter of 4th April and regret that we must advise you to regard their request for credit with caution.  About a year ago an action was brought against the firm by one of its suppliers for recovery of sums due though payment was recovered in full.  Our enquiries reveal nothing to suggest that the firm is not straightforward. It seems to us that the firm’s difficulties were due to bad management and in particular to overtrading. Consequently, most of the firm’s suppliers either give only very short credit for limited sums or make deliveries on a cash basis.  This information is of course supplied in the strictest confidence.  Yours faithfully,  Universal Information Service  Manager

Writing skills  Key points for writing an status enquiry letter: Ask inf. in a straightforward way, in simply language, but be courteous. Contents covering the financial position, credit, reputation, business activities, etc. Ending with such words as “treated strictly confidential” or “Private & Confidential”, etc. By ending with thanks when the inf. Required received.  Key points for writing a replying letter: In the form of report with facts Opinion for consideration only Beginning with words of your pleasure to give a hand Ending with such words as “treated strictly confidential” or “Private & Confidential”, etc. In a straightforward way and in simply language.

Reasons for status enquiry We have received a letter from the Auto Engineering Co., Ltd. In Nigeria, expressing their desire to enter into business relations with us on condition that we allow them a standing credit of USD 5,000 to start business. As stated in their letter, their reference is the National Bank of Nigeria, ibadan. It is our principle to have more connections aboard; however, for safety ’ s sake, we should like to know the financial and credit standing of the above-mentioned company, especially because they have requested us for a standing credit, which we seldom grant to new customers.

Contents of status enquiry  We should like to know whether or not their financial and credit standing are sound.  Will you please inform us, in confidence, of the extent of their resources and also as to their reputation.  We should be glad to know: whether they are in the wholesale trade; if their financial position is considered strong; if they are among leading wholesale firms in your city; whether they have the reputation of paying promptly; whether they have the reputation of keeping their engagements promptly and fully what credit it would be safe to allow them; whether their credit is at all doubtful;

Ending the letter  Any information you can furnish as to their capital and reputation would be greatly valued and treated in confidence by us.  We promise to keep your opinions in the strictest confidence and we assure you that there will be absolutely no leaks.

 reference  financial standing  Treated in strict confidence  Without any liability on your part  In reply to  Document against payment  Chief line  Inform … of …  Due to

reference 1) ( 身份，能力等的 ) 证明书 We note that you will supply reference as they are necessary to us. 2) 证明人 Their reference is the Bank of China. 3) 编号 Reference No. 4 ）参考 A market report will be sent to you for your reference. With (in) reference to regarding; about With reference to payment, we can not do otherwise than L\C at sight.

Standing (n.) a) position, reputation e.g. we should like you to enquire into Nettleton ’ s financial standing on our behalf b) Duration e.g. They have got out of a debt of long standing at last. This is an issue of long standing. (adj.) Going on regularly without change; lasting ; permanent E.g. They have asked for a standing credit of $1,000.00

Credit (n.) a)sum of money placed at a person ’ s disposal by a bank, advance or loan e.g. Owing to their bad management, few of the suppliers will give them further credits. b) money shown as owned by a person in his account with a bank. e.g. we are glad to inform you that we have placed the sum to your credit. c) trust in one ’ s integrity in money matters and one ’ s ability to meet payment when due e.g. Their credit is good. We bought it on credit (payment being made later)

Due 1) owing(to); to be paid The commission due to you will be paid at the end of this month. 2) suitable, proper After due consideration, they decided to accept our proposal. We hope that payment will be made in due time. 3) expected, appointed or agreed(for certain time or date) The plane is due to take off at ten to two. Due to: caused by The delay of the steamer was due to a heavy storm. Duly (adv.):in a right or suitable manner; at the right time A bill was received and duly paid.

 This is a case in which caution is necessary and we suggest that you make additional enquiries through an agency. We accept your assurance that the information we have given will be treated in strict confidence. 我们觉得这是一件必须谨慎的事，因此建议你们 通过咨询社再行咨询。我们接受你们的保证，对 我们提供的材料予以保密。  We promise to keep your opinions in the strictest confidence and we assure you that there will be absolutely no leaks. 我们保证将您的意见作最严格的保密，而且我们 担保绝对不会泄漏。

Credit Information, Favourable  贵方于本月 1 日发来的查询函首悉。本公司与该 公司的交易关系到目前为止颇为顺利、愉快。特 此函复。 In reply to your inquiry of the 1st inst, we inform you that our business relations with the firm have hitherto been most satisfactory.  该公司的资金雄厚，其信用可以说 “ 无限 ” ，而其 高级职员可称之为精明强干。 They command considerable funds and an unlimited credit, and the executives are thorough business men.

 我们很乐于说明：该公司虽然很小，但信 用颇好，对本公司来说，是交易甚久而最 为重要的以为顾客。 We have much pleasure in stating that they are a small but highly respectable firms, and very old and valued customers of ours.  今后如有吩咐，我们将乐于为您效劳。但 对本报告，务必严守秘密，敬请谅察为荷。 We shall be pleased to render you any further services, and we ask you to consider this information as given in strict confidence.

Credit Information, Unfavourable  我们无法向贵公司提供您所需要的确切情报，对此，我们深 感遗憾。 We are sorry we are not able to give a precise information you ask.  因此，我们实在不愿对贵公司所提及的款项予以信用。 We should therefore hesitate to extend credit for the amount mentioned.  本公司原希望能向您提供良好的情报，但未能做到，请原谅。 We regret that we cannot give as favourable report as we should like to give.  我们觉得这是一件必须谨慎的事，因此建议你们通过咨询 社再行咨询。我们接受你们的保证，对我们提供的材料予以 保密。 This is a case in which caution is necessary and we suggest that you make additional enquiries through an agency. We accept your assurance that the information we have given will be treated in strict confidence.

Task  You have received an order for goods to the value of $1600 from a new customer William Baker & Sons about whom you know nothing. Write the necessary letter to your own bank asking for information.

 Translation （ 1 ） 1 、本公司有庞大的销售网点。 2 、本公司是香港最大的食品贸易公司，在中国 内陆有分公司与门市部。 3 、我们发现有些展品质量优良，设计精美。 4 、本公司正在贵市寻找新的业务关系，若蒙将 下列资料登载于贵刊上，将不胜感激。

 Translation （ 2 ） 1.We would like to receive your frank opinon about the financial condition of Shangyuan Canned Food Co., Ltd. 2.We promise to keep your opinions in the strictest confidence and we assure you that there will be absolutely no leaks. 3.We have not done any business with Dayu Inc. in the last two years. 4.We are pleased to tell you that Haojie Inc. has sufficient credit for you to do business with. 5.Concerning payments, they are very precise without any delay and always on time.