A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back: revolving but is most commonly irrevocable/confirmed) to a beneficiary against complying documents as stated in the credit. Letter of Credit is abbreviated as an LC or L/C, and often is referred to as a documentary credit, abbreviated as DC or D/C, documentary letter of credit, or simply as credit (as in the UCP 500 and UCP 600). Once the beneficiary or a presenting bank acting on its behalf, makes a presentation to the issuing bank or confirming bank, if any, within the expiry date of the LC, comprising documents complying with the terms and conditions of the LC, the applicable UCP and international standard banking practice, the issuing bank or confirming bank, if any, is obliged to honour irrespective of any instructions from the applicant to the contrary. In other words, the obligation to honour (usually payment) is shifted from the applicant to the issuing bank or confirming bank, if any. Non-banks can also issue letters of credit however parties must balance potential risks.
The LC can also be the source of payment for a transaction, meaning that an exporter will get paid by redeeming the letter of credit. Letters of credit are used nowadays primarily in international trade transactions of significant value, for deals between a supplier in one country and a wholesale customer in another. They are also used in the land development process to ensure that approved public facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. Since nowadays almost all letters of credit are irrevocable, (i.e. cannot be amended or cancelled without prior agreement of the beneficiary, the issuing bank and the confirming bank, if any). However, the applicant is not a party to the letter of credit. In executing a transaction, letters of credit incorporate functions common to giros and Traveler's cheques. Typically, the documents a beneficiary has to present in order to avail himself of the credit, are commercial invoice, bill of lading, insurance documents. However, the list and form of documents is open to imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped
Showing posts with label business letter. Show all posts
Showing posts with label business letter. Show all posts
Friday, July 20, 2007
Writing Business Letters
Writing Business Letters
Business letters should be neat. Plain white paper, 8 ½ by 11, is considered standard, and typing is considered an advantage. It is not required that you type any of your business letters. However, most businesses type letters and reports.
Any business letter you write may take one of two forms.
One form is the block form, which should be used only if you type a letter. In the block form, begin every part of a letter at the left margin. Leave a blank line between paragraphs and do not indent them.
Another form, the modified block form, may be used either for handwritten or typewritten letters. In this form, place the heading, closing, and signature at the right side of the page. Indent the paragraphs and do not leave extra space between them.
Every business letter has six parts the five parts of a personal letter, plus an inside address. The inside address is the name and address of the company to which you are writing. Whenever possible, the inside address should include the name of a particular employee or department within the firm. Place the inside address at the left margin below the heading and above the salutation.
More formal language is used in business letters than in personal letters. For the greeting use Dear Mr., Mrs., Miss, or Ms. Before the person´s name. Or, use a general greeting like Dear Sir or Madam. Place the salutation two lines below the inside address and use a colon (:) after it.
For the more formal closing, write Sincerely, Yours truly, or Very truly yours, followed by a comma. If you type a letter, leave four lines of space between the closing and your typed signature. Then write your signature in the space.
Business letters are polite, specific, and neat. Keep a copy of all business letters you write.
Sample business letter, block format:
Business letters should be neat. Plain white paper, 8 ½ by 11, is considered standard, and typing is considered an advantage. It is not required that you type any of your business letters. However, most businesses type letters and reports.
Any business letter you write may take one of two forms.
One form is the block form, which should be used only if you type a letter. In the block form, begin every part of a letter at the left margin. Leave a blank line between paragraphs and do not indent them.
Another form, the modified block form, may be used either for handwritten or typewritten letters. In this form, place the heading, closing, and signature at the right side of the page. Indent the paragraphs and do not leave extra space between them.
Every business letter has six parts the five parts of a personal letter, plus an inside address. The inside address is the name and address of the company to which you are writing. Whenever possible, the inside address should include the name of a particular employee or department within the firm. Place the inside address at the left margin below the heading and above the salutation.
More formal language is used in business letters than in personal letters. For the greeting use Dear Mr., Mrs., Miss, or Ms. Before the person´s name. Or, use a general greeting like Dear Sir or Madam. Place the salutation two lines below the inside address and use a colon (:) after it.
For the more formal closing, write Sincerely, Yours truly, or Very truly yours, followed by a comma. If you type a letter, leave four lines of space between the closing and your typed signature. Then write your signature in the space.
Business letters are polite, specific, and neat. Keep a copy of all business letters you write.
Sample business letter, block format:
Writing Personal Letters
The term personal letter includes all letters not written to businesses. Writing personal letters is a way of keeping in touch with absent friends or of expressing your feelings in certain social situations. Personal letters, which are usually handwritten, have five main parts:
The heading contains three lines: one line for the writer´s street address, one for the city, state, and ZIP code, and one for the date. None of this information should be abbreviated. The heading appears at the top right corner of your letter.
The salutation is the greeting. Usually beginning with Dear, it is written on the next line below the heading. It starts at the left margin of the page and is followed by a comma.
The body of the letter is the main part. There you write what you want to say in a detailed and conversational way. The body begins on the line following the salutation. Each paragraph of the body should be indented.
The closing is your way of saying "goodbye." You may say Love or Your friend, for instance. The closing is written on the line below the last line of the body and is followed by a comma. The first word of the closing should align with the first words of the heading.
Your signature is the last part of a letter. Skip a line after the closing and sign your name in line with the first word of the closing. Usually, only your first name is needed.
There are some forms of personal letters written only for special occasions. These social notes include invitations and thank-you notes. The notes also have five main parts, but the heading may be shortened to the date only.
If you send an invitation, include all information about the event. If you receive an invitation, reply at once.
Sometimes you will send thank-you notes. One kind of thank-you note is written to thank someone for a gift your have receive. Another kind of thank-you, called a bread-and-butter note, thanks someone for his or her hospitality. You would write this kind of note if you stayed overnight as a guest in someone´s home.
Sample personal letter format: (If you type a personal letter, always handwrite your signature.)
The heading contains three lines: one line for the writer´s street address, one for the city, state, and ZIP code, and one for the date. None of this information should be abbreviated. The heading appears at the top right corner of your letter.
The salutation is the greeting. Usually beginning with Dear, it is written on the next line below the heading. It starts at the left margin of the page and is followed by a comma.
The body of the letter is the main part. There you write what you want to say in a detailed and conversational way. The body begins on the line following the salutation. Each paragraph of the body should be indented.
The closing is your way of saying "goodbye." You may say Love or Your friend, for instance. The closing is written on the line below the last line of the body and is followed by a comma. The first word of the closing should align with the first words of the heading.
Your signature is the last part of a letter. Skip a line after the closing and sign your name in line with the first word of the closing. Usually, only your first name is needed.
There are some forms of personal letters written only for special occasions. These social notes include invitations and thank-you notes. The notes also have five main parts, but the heading may be shortened to the date only.
If you send an invitation, include all information about the event. If you receive an invitation, reply at once.
Sometimes you will send thank-you notes. One kind of thank-you note is written to thank someone for a gift your have receive. Another kind of thank-you, called a bread-and-butter note, thanks someone for his or her hospitality. You would write this kind of note if you stayed overnight as a guest in someone´s home.
Sample personal letter format: (If you type a personal letter, always handwrite your signature.)
Dates,Body,Closing,Signature
Dates
The date usually goes between your address and the recipients address. In formal business writing, it is best to completely write out the date to avoid confusion. For example, the writer should write October 8, 2002, instead of 10/8/02. One reason for writing out the date is date-formats; in the US, 10/8/02 is October 8, 2002, but most of the world would read this as 10th August 2002.
Body
The body of your letter should be written clearly and concisely. It includes as many paragraphs as are necessary to communicate the information. Paragraphs are generally short, no more than 4 or 5 lines.
If additional documents are being enclosed with a business letter they should be mentioned in the body of the letter.
Closing
A closing is included after the last paragraph of a business letter. Examples of closings in business letters include "Cordially (yours)", "Respectfully (yours)", "(With) best regards" and "(With) kindest regards". The closing that is used will depend on the contents and formality of the letter, the writer's familiarity with the recipient, and the recipient's level of authority. "Yours truly" and "Very truly yours" are often considered more affectionate and omitted from modern Business Letter style guides[3], but you will find them listed in older style manuals[4], and are often taught to non-native writers as a catch-all phrase[citation needed], for use when the writer is uncertain how to close the letter. Still, most attorneys close legal correspondence with "Very truly yours."
In UK English, a closing is followed by a comma ("Yours sincerely,") only if the salutation included a comma. If a comma is omitted from the salutation, the letter should be considered written in 'open punctuation', and the comma should therefore be omitted from the closing also ("Yours sincerely").
In the UK, the use of the closing "Yours sincerely," is generally reserved for a recipient whose name is known, substituting "Yours faithfully," where it is not known.
Signature
The sender's signature is included after the closing. The sender's name and title should be typed under the signature. The sender's name should come before their title.
The date usually goes between your address and the recipients address. In formal business writing, it is best to completely write out the date to avoid confusion. For example, the writer should write October 8, 2002, instead of 10/8/02. One reason for writing out the date is date-formats; in the US, 10/8/02 is October 8, 2002, but most of the world would read this as 10th August 2002.
Body
The body of your letter should be written clearly and concisely. It includes as many paragraphs as are necessary to communicate the information. Paragraphs are generally short, no more than 4 or 5 lines.
If additional documents are being enclosed with a business letter they should be mentioned in the body of the letter.
Closing
A closing is included after the last paragraph of a business letter. Examples of closings in business letters include "Cordially (yours)", "Respectfully (yours)", "(With) best regards" and "(With) kindest regards". The closing that is used will depend on the contents and formality of the letter, the writer's familiarity with the recipient, and the recipient's level of authority. "Yours truly" and "Very truly yours" are often considered more affectionate and omitted from modern Business Letter style guides[3], but you will find them listed in older style manuals[4], and are often taught to non-native writers as a catch-all phrase[citation needed], for use when the writer is uncertain how to close the letter. Still, most attorneys close legal correspondence with "Very truly yours."
In UK English, a closing is followed by a comma ("Yours sincerely,") only if the salutation included a comma. If a comma is omitted from the salutation, the letter should be considered written in 'open punctuation', and the comma should therefore be omitted from the closing also ("Yours sincerely").
In the UK, the use of the closing "Yours sincerely," is generally reserved for a recipient whose name is known, substituting "Yours faithfully," where it is not known.
Signature
The sender's signature is included after the closing. The sender's name and title should be typed under the signature. The sender's name should come before their title.
Example of an Address Line
Leo B. Perez
WEBLINQ Philippines, Inc.
Magsaysay Ave.
Gensan City, WS 10000\
WEBLINQ Philippines, Inc.
Magsaysay Ave.
Gensan City, WS 10000\
Unbound Report
UNBOUND REPORT
Margins
In an unbound report, the title is centered in all caps. The lines are double spaced and margins are one inch on each side and two inches on
top. Page numbers are provided and side headings can be used. If side headings are used they should be on the left margin and underlined.
Other Necessities
Unbound academic reports must have a heading including name, professor's name, class name, and date in upper left-hand corner and
include page numbers on all page, excluding the first page. Side headings can be capitalized or underlined, as long as they properly incidicate
what is discussed in the following paragraphs.
Margins
In an unbound report, the title is centered in all caps. The lines are double spaced and margins are one inch on each side and two inches on
top. Page numbers are provided and side headings can be used. If side headings are used they should be on the left margin and underlined.
Other Necessities
Unbound academic reports must have a heading including name, professor's name, class name, and date in upper left-hand corner and
include page numbers on all page, excluding the first page. Side headings can be capitalized or underlined, as long as they properly incidicate
what is discussed in the following paragraphs.
Addresses
The address is usually written from the most specific information (i.e. the recipient's name) to the most general (i.e. the city, state, ZIP Code or country). If the writer knows the recipient's gender, a courtesy title (Mr. or Ms.) should be included. Please note that the sender's name should not be included with the address.
Open vs. Mixed Punctuation
When using open punctuation, no punctuation is used after the greeting or the complimentary closing.
Ex.
Dear Ms. Smith (greeting)
{BODY}
Sincerely (closing)
When using mixed punctuation, there is a colon after the greeting and a comma after the closing.
Ex.
Dear Ms. Smith: (greeting)
{BODY}
Sincerely, (closing)
Ex.
Dear Ms. Smith (greeting)
{BODY}
Sincerely (closing)
When using mixed punctuation, there is a colon after the greeting and a comma after the closing.
Ex.
Dear Ms. Smith: (greeting)
{BODY}
Sincerely, (closing)
Example of a Block Style Letter
April 17, 2007 < blank lines>
Ms. Dorothy Gayle
1925 Dogwood Lane
Munchkinland, KS 66123
<1 blank line>
Dear Ms. Gayle
<1 blank line>
This is an example of a block style business letter. All major parts of the letter start at the left margin. Business letters have a 2" top margin to allow room when printing on letterhead stationery, and 1" side and bottom margins. This example uses open punctuation, but you may use either open or mixed punctuation. Mixed punctuation requires a colon after the salutation (Dear Ms. Gayle:) and a comma after the complimentary close (Sincerely,).
<1 blank line between paragraphs and do not indent the first line of each paragraph>
Quadruple space (leave three blank lines) after the date and double space (leave one blank line) between the inside address and the salutation. You should double space after the salutation and between each paragraph. After the last paragraph, double space and enter the closing (Sincerely or Sincerely yours). Then, triple space (leave three blank lines) so the writer has enough space to enter his or her signature and enter a typed signature and the writer's title.
The letter writer's title may be one line below the typed signature or on the same line as the typed signature but with a comma separating them (Glenda Goodwitch, Office Manager). The initials of the person who keyed (typed) the letter is entered at the left margin a double space below the title of the writer.
Sincerely
< blank lines for hand written signature>
Glenda Goodwitch
Office Manager
Ms. Dorothy Gayle
1925 Dogwood Lane
Munchkinland, KS 66123
<1 blank line>
Dear Ms. Gayle
<1 blank line>
This is an example of a block style business letter. All major parts of the letter start at the left margin. Business letters have a 2" top margin to allow room when printing on letterhead stationery, and 1" side and bottom margins. This example uses open punctuation, but you may use either open or mixed punctuation. Mixed punctuation requires a colon after the salutation (Dear Ms. Gayle:) and a comma after the complimentary close (Sincerely,).
<1 blank line between paragraphs and do not indent the first line of each paragraph>
Quadruple space (leave three blank lines) after the date and double space (leave one blank line) between the inside address and the salutation. You should double space after the salutation and between each paragraph. After the last paragraph, double space and enter the closing (Sincerely or Sincerely yours). Then, triple space (leave three blank lines) so the writer has enough space to enter his or her signature and enter a typed signature and the writer's title.
The letter writer's title may be one line below the typed signature or on the same line as the typed signature but with a comma separating them (Glenda Goodwitch, Office Manager). The initials of the person who keyed (typed) the letter is entered at the left margin a double space below the title of the writer.
Sincerely
< blank lines for hand written signature>
Glenda Goodwitch
Office Manager
Format for the Header on the Second Page of a Letter
Sometimes a letter has a second page. A second page requires a heading that consists of three parts: (1) the name of the person who will receive the letter, (2) the date, and (3) the page number. Usually, there is a one inch blank margin that precedes those three items.The quality and weight of the paper used for a second page should be the same as that used for the first page. The second page header can be created in one of the following two formats:
Format 1
Jenny Stout April,20, 2007 2
Format 2 (Note: this format requires that each line of the header start at the left margin.)
Jenny Stout April 20, 2007 Page 2
Format 1
Jenny Stout April,20, 2007 2
Format 2 (Note: this format requires that each line of the header start at the left margin.)
Jenny Stout April 20, 2007 Page 2
Parts of a Business Letter
Business Letters in the United States usually contain the following information (in this order):
Letterhead or sender's address
Date
Inside address
Salutation or Greeting
Letter body
Complimentary closing
Signature, printed name, and position of sender
In some situations, a business letter may also include the following optional information:
Reference (RE:)
Carbon Copy Recipients (CC:)
Enclosures (ENC:)
Reference Initials (of the typist)
Letterhead or sender's address
Date
Inside address
Salutation or Greeting
Letter body
Complimentary closing
Signature, printed name, and position of sender
In some situations, a business letter may also include the following optional information:
Reference (RE:)
Carbon Copy Recipients (CC:)
Enclosures (ENC:)
Reference Initials (of the typist)
Business letter
A business letter is a letter written in formal language (English), usually used when writing from one business organization to another, or for correspondence between such organizations and their customers, clients and other external parties. The overall style of letter will depend on the relationship between the parties concerned;[1] however, there is a general consensus on style,[2] for example, Business letters usually follow a left-blocked format, other points of general style are outlined below.
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