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Essential of Effective Business Communication Letters


Q. 5. Give a specimen of bad newsletters.

Or Write a short note on bad newsletters.

Ans. Meaning of Bad News Letter: The letters which convey some unfavorable or unpleasant Ans. Meaning of Bad News Letter: The letters wh as bad newsletters. These letters convey negative information to the reader, are termed as bad newsletters. These letters convey information to the reader. Writing these letters is very difficult because these letters aim to give the message in a manner that is acceptable to the reader and to avoid the reader’s negative action. These are the letters that are expected to displease or disagree with the receiver. The following information may be included in the bad newsletters.

(i) To reject an application or request.

(ii) Declaration of unpleasant policies for the consumers.

(iii) Negative assessment of demonstration.

(iv) Information regarding the returning of damage and faulty goods.

   For writing such letters, indirect approach is considered better so that it may cause minimum frustration to the receiver. In the first part some favourable news or statement should be given and then bad news is given with explanation. If necessary and possible, reasons for rejections should also be given. A bad news letter should be written in such a way that help in maintaining a good image of the writer and his organisation. It should produce the impression that writer is helpless to do with the circumstances and he is not rejecting a request on his own. He must come to realise that if he were in the same position, he would also have taken the same decision.

Purpose of Writing Bad News Letters

The main purposes of writing bad news letters are as follows:

(i) To give bad news to the reader.

(ii) To have the reader to read, understand, and accept the message.

(iii) To maintain as much goodwill as possible.

(iv) To build a good image of the writer and his organization.

(v) To reduce or eliminate future correspondence on the same subject.

(vi) To make assure the reader that he has been taken seriously and the decision is quite reasonable.

(vii) Not to make the reader unhappy.

Bad news letters make the reader disappointed, therefore bad news message needs the right attitude and appropriate tone.

Essential of Effective Business Communication Letters

Specimen of Bad News Letters

1. Letter for Refusing Credit

ABC Enterprises

R.K. Road, Meerut

Date : Jan. 12, 2014

Ref. No.: 104/Credit/14


   M/s. Tomar Brothers

   Mall Road, Lucknow

   Dear Sirs,

   We are pleased to receive your order dated Jan. 8, 2014 and are thankful to you for showing Interest in our products. But due to our own financial constraints and our policy decision, we are not in a position to supply goods on credit.

  We are expanding our business for which we need finance. We do not like our finance to be blocked in debtors and we have to arrange from bank by paving interest. Meanwhile, we would be glad to supply you goods at special discount of 4% on net invoice prices, if you send the net amount.

We hope that you will understand our limitations and will accept this offer. Thanking you and’expecting a favourable response from you.

Yours faithfully,

Chand Mohan

(General Manager)


Q. 6. Write a letter of request for opening a bank account.



The Manager,

Punjab National Bank


Ref: Opening of a Current Account

Dear Sir,

We would be grateful if a Current Account in the Company’s name is opened with the New Market Branch of your Bank. We are enclosing the following documents alongwith the application form, duly filled in :

  1. Certificate of incorporaton (with a copy for your record),
  2. Certificate of the Registrar of Companies granting permission to the company to commence business (with a copy),
  3. Copy of the Memorandum and Articles of the Company.
  4. Certified copy of the proposal of the Board of Directors to open a Current account duly signed by the Chairman,
  5. Letter of introduction by Shri R.K. Verma, an account holder of your Bank.

We are deposting 10,000 as initial deposit. Mr. Sen of the Accounts Department is bringing you this amount in cash. Please accept this deposit and open a current account in our commpany’s name.

Shri B.K. Gupta, the Managing Director, is authorised to operate this account, Please send us (i) a cheque book, (ii) a pass book, (iii) a pay-in-slip book to operate the account We are looking forward to a fruitful cooperation in our business transactions. Yours faithfully, Ramesh Encl: Five documents

Q. 7. Draft a letter of a customer’s request for overdraft.



The Manager

Canara Bank Goa

Dear Sir,

   We are pleased to report to you the steady progress of our business since its establishment i August, 20. The two hundred per cent increase in our turnover in the t that of the first year, offers ample testimony of our success in our business. We have been able achieve this mainly because of the wide range of consumer goods readily available in our store.

      In the coming Christmas and New Year season, we expect a further rise in our turnover and as such we wish to add to our stock other lines of goods also. On account of tight money market our usual suppliers have expressed their inability to grant us credit for a period of more than one month.

      Under the circumstances we are obliged to approach you with a request for a small overdraft. According to our estimate an overdraft of * 65,000 would be sufficient to finance our increasing seasonal stocks. We require this amount for a period of three months, by the end of which we shall be able to place the account in credit.

      At present we can give you only our personal guarantee as security for the overdraft. However, we wish to draw your attention to the operation of our current account with your Bank in respect of a fair balance maintained regularly, bills and other obligations met promptly and drafts bought regularly. Audited copies of the Trading and P&LA/c and Balance Sheet as on the date of application are enclosed for your persual.

     An early reply will greatly facilitate sending orders to our suppliers and having our stocks in time. Yours faithfully, M/s Suraj Traders New Market Goa

Essential of Effective Business Communication Letters

Q. 8. Write a letter on the following subject :

Due to the expansion of his business a customer needs a loan of 3,00,000 for a period of one year.



The Manager

State Bank of India

Karol Bagh,

New Delhi

Ref: Open Credit.

Dear Sir,

The recent business tour of West Asian markets by our senior partner, Mr. D.K. Gupta, has fetched handsome orders for our products. At the same time our exports to South East Asian countries are continuing unabated. This has increased our production activities beyond our expectations.

Since all these order are to be supplied on credit ranging from four months to six months we are obliged to approach you for a term loan of 3,00,000 for one year. This amount would cover 80% of our financial requirements on account of the increased production activities, the remaining 20% being met by us from our internal sources.

Please let us know whether your Bank can help us in this matter and, if so, on what terms. For this purpose we offer you the following as security :

1. Our freehold Factry Building as valued in our last Balance Sheet                         6,50,000

2. Government Bonds, 5%, 1989, full paid                                                                     1,00,000


An early reply will be highly appreciated.

Yours faithfully,

ABC Manufactors Ltd. Karol Bagh,

New Delhi

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