Meaning of Business Status Inquiry Letter

Meaning of Business Status Inquiry Letter

Meaning of Business Status Inquiry Letter

The letter that is written for obtaining information about a business enterprise is termed as business status inquiry letter. Generally, one business enterprise writes this letter to another business enterprise for collecting information about a prospective customer.

When a business firm wants to buy goods on credit, it gives one or more reference to whom the seller can ask for some information about the credit seekers. Usually, banks, trade associations, or competing business firms are mentioned as references. The seller then writes the inquiry letter to the referees requesting them to provide some information about the customer.

The purpose of writing this letter is to obtain information relating to:

a) financial capability or credit worthiness,

b) goodwill,

c) nature of business dealings,

d) honesty,

e) relationship with the business association, etc.

In light of the above discussion, we can conclude that when a business enterprise writes an inquiry letter to another business enterprise, financial institution or trade association to obtain information about credit worthiness or financial capability of a customer who has applied for credit purchaser, it is called business status inquiry letter. Basing on the information supplied by the referees, the seller decides whether to establish business transactions with the firm.