letter bank requesting lower interest rate

We have to pay other allied material and factory overheads for production of your products for which the credit period is 60 days and when we don’t receive payment in time but 4-5 months late, how we will survive please consider. We have to build inventory for smooth supply and it is about two months procedure to reach imported material in our godown and all this import cost is paid in advance by us. The cash flow is like blood for every organization, you know.

For all the new Purchase orders onward, the credit period will be 30 days and it will be assured that payment will be cleared on due that.

Clear our long long outstanding balance of Rs.774,000.

For enhancement of mutual beneficial relationship and we look forward towards you to resolve our following grievances: Due to our low cost supply as well as long long outstanding unclear balance, we are pleased that you may have saved almost a reasonable handsome amount. We always feel pleasure to work with your esteemed organization. We have paid almost Rs.165,000 per annum mark up to the bank due to your delayed payments. In this way Mega also took support from us by availing interest free & collateral free credit amount. You enjoyed heavy undue credit from us and on the other side, in addition to crunch in cash flow we paid heavy mark up to our bank. At any time during the period, we had total average outstanding balance of about Rs.1.00 (M). Despite of long credit period, the payment were made after 4-5 months late which badly affected our cash flow.

Normally we are working on advance payment as well as on credit period of 15-30 days maximum with other clients but we have given reasonable credit period of 60 days to you for making payments. We are proud to provide you in time best quality products at low cost.īut when we have a look about payment history on part of the Mega, you will see that payments were not made at due dates. We invested huge amount of funds for building of said raw material inventory for your organization. At all the times, we have been providing special much discounted rates to your organization it was because of the reason that we had build heavy paper & board inventory solely for your products. When you have a look about our business history with your esteemed organization, you will really admire our services rendered to you. We are writing to you in deep compulsion about the non smoothness of payment history procedure as well as request for rates revision.

Letter bank requesting lower interest rate