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Credit Refusal Letter

A credit refusal letter is sent from one party to another during the course of a business, so as to inform the recipient that his/her request for a credit has been denied. The reason for the rejection of the credit must be clearly stated in the letter. The aim of the letter should be to politely refuse the offer of credit, but also ensure that future transactions are not affected by this decision.

A credit refusal letter deals with the aspects of refusing a credit. Here a common sample is provided to give you the knowledge.

Credit Refusal Letter Sample


San Francisco Main Bank

3305 Harrison Street

San Francisco, CA 94112

Aug 13, 2014


Edward R. Alcaraz

Sparkles Renovation Enterprise

2103 Payne Street

Houston, TX 77073

Re: Decision on Credit Application

Mr. Edward Alcaraz,

Thank you for applying for credit in the San Francisco Bank. We have gone through your application and we found your business idea truly impressive. We would have welcomed your business, but unfortunately we are unable to extend any credit to you at this time.

Your application has been refused because you don’t possess sufficient collaterals to put forward for your request. Moreover, your business is not performing well. San Francisco Bank would be happy to reconsider your application when the situation of the real estate market changes.

Respectfully Yours,

Credit Department

San Francisco Main Bank

Given Below are a few credit letter samples for a clearer Idea.

Letter of Request Credit Note from Supplier

Standby Letter of Credit
The standby letter of credit is issued by banks or financial institutions.

Sight Letter of Credit
A letter of credit that is payable once it is presented along with the necessary documents.

Revolving Letter of Credit
A revolving letter of credit is issued by banks or financial institutions to the clients.

Documentary Letter of Credit
Documentary letter of credit is a well-known fact that a credit facility is important, especially for the people involved in business activities.

Credit Reference Letter
A credit reference letter is issued by a bank or any other financial institutions.

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