How to Write a Letter of Credit Explanation

When writing a letter of credit explanation, there are several key points to keep in mind. The letter must be honest, straightforward, responsible, respectful, and factually proven. Employing all of these elements into your letter can ultimately make the letter much more effective.

Honesty
The first and most important element in the letter is sheer honesty. Even exaggeration must be avoided. At the time, exaggeration may seem like a good idea when trying to persuade. But unfortunately, exaggeration can probably be detected. Sit down, and think about the events that had happened in order. What events caused the delay of payments? Try to jot down the most important details, and overall, tell the events as honestly as you remember them.

Simple and Straightforward
Try to make the letter as brief as possible. Creditors are not interested in reading long, drawn out letters. If you happen to have a lot of complicated events that led to the problem, consider condensing the material into a summary. Or, simply cut out parts that are not entirely relevant. Ultimately, simple and straightforward is the best way to go.

Responsibility

Take full responsibility for the problem. However, unless you were caught in a situation where you were victimized by someone else, remember to describe that incident. Try not to fish for pity. Just state the facts. Overall, creditors want you to own up to your failures despite the circumstances, so try to remember that. Similarly, creditors will not tolerate blame unless rightly justified, usually through the wrongdoing of another person against you.

Respect
Treat the creditors the way you would want them to treat you. Do not demand respect if you cannot give it. To make sure the tone of the letter is not too harsh or demeaning, read it out loud. Also, it is good idea to have another person read it to see if they can detect any harsh tone. Conclusively, remember to keep the tone of the letter respectful, as that alone can give you a significant amount of brownie points compared to a disrespectful letter.

Proof
Lastly, it is important to provide evidence to back up your claims. You can use a numerous array of documents, including receipts, letters, policies, and contracts. For example, if there was a death in the family, you can include a copy of the will (if possible) or the obituary. When sending any kind of document, always send over copies; never send over the originals. Now, while proof is not completely necessary, it is, however, strongly encouraged. It overall makes your story much more believable.

Promise to Do Better
Creditors like to see an apology, and perhaps even full on repentance. They want to ensure that you will not repeat the problem again. If possible, write down the steps you will take to make sure the problem will not happen again. Creditors will appreciate that.