A revolving letter of credit is a single letter of credit that can be used several times over a long period of time. This letter is delivered to a third party in support of your client permitting them the right to withdraw a certain amount according to the request made by the customer. In the letter, it has to be mentioned that in what way the transaction has to go ahead according to the agreements made between both the parties.
It is issued by the banks or financial institutions to the clients. It is written to mention the details of revolving credit accounts,i.e., the right to withdraw a certain amount.
Revolving Letter Of Credit Writing Tips
- Mention your complete details in the letter, your name, name of the bank, the purpose of writing this letter.
- Mention that you will collaborate in regards to the financial matters related to the undertaken project.
- Write the letter in professional language. Be specific; do not write a lengthy letter.
- Mention the date on which the repayment has to be done. Also, mention in which bank and branch the repayment has to be done.
Revolving Letter Of Credit Template
Use our free Revolving Letter of Credit to help you get started.
From,
_____________
_____________
_____________.
Date: ______________. (Date on which letter is written)
To,
____________
____________
____________.
Subject :____________(Main purpose of writing the letter)
Dear______________, (Sir/Madam)
I am the manager of _________________(name of bank) writing this letter to you as a reply to the request made by the standard engineers who is our customer. The client has requested to get you the payment as needed for the completion of a project commenced by you. The requested amount will be credited to the bank account of the applicant in his _______ (mention the branch) branch. Note that this transaction being a non-cumulative type; it would be based on fortnightly payment. You will be allowed to withdraw Rs______(amount) twice in the month.
You have to refund all the withdrawals to our head office at Mumbai by _________(date). We highly consider your request, and we would completely help you regarding the financial support required for this project.
Thanking you
Warm regards,
______________, (Name and signature)
______________. (Name of the organization)
Sample Letter
From,
Bank Manager,
Maharashtra Co-operative Bank.
Date: May 28, 2013
To,
Manish Gupta,
Friends Colony, Akola,
Maharashtra.
Subject: Revolving credit facility,
Dear Mr Manish,
I am writing the letter to you as the Branch Manager of Maharashtra co-operative bank. This is with reference to the request made by the customer, standard engineers’ ltd., to deliver you the payment as required for the accomplishment of the project that you have started. We will credit the amount to the bank account of the applicant which is in our New Delhi Branch. The transaction will be of a non-cumulative nature and it would be on the fortnightly basis. As agreed, we will permit you to withdraw Rs.5000/- twice in the month.
All the withdrawals made by you must be paid back to us at our head office in Mumbai before 31st March 2014. Your request is important to us, and we would fully co-operate you in the economic issues related to your project. Regarding any queries, feel free to contact us.
Warm regards,
Sunil Iyer,
Branch Manager,
Maharashtra Co-operative bank.
Email Format
The following is the email format to be followed for Revolving Letter of Credit.
From: name@email.com
To: name@email.com
Subject:_______________. (Main purpose of writing the mail)
Dear___________, (Name of the recipient)
I am writing the letter to you as the Branch Manager of __________________ (Name of the bank). This is with reference to the request made by the customer, standard engineers’ ltd., to deliver you the payment as required for the accomplishment of the project that you have started. We will credit the amount in the bank account of the applicant which is in our New Delhi Branch. The transaction will be of a non-cumulative nature and it would be on the fortnightly basis. As agreed, we will permit you to withdraw Rs.5000/- twice in the month.
All the withdrawals made by you must be paid back to us at our head office in Mumbai before ____________ (mention the date). Your request is important to us, and we would fully co-operate you in the economical issues related to your project. Feel free to contact us.
Yours truly,
____________ (Name of the sender)
____________ (Name of the organization)
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