Commercial Letter: Definition, Function, Types and Examples

September 27, 2023
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Commercial Letter: Definition, Function, Types and Examples – In this discussion Regarding Knowledge will explain about Commercial Letters or what are also easily called Trade Letters. Explanations include meaning, function, types and of course examples are given to make it easy to understand. For this reason, follow the complete review below.

Commercial Letter: Definition, Function, Types and Examples

Let's first discuss the meaning of a commercial letter carefully.

Understanding Commercial Letters

Trade letter is a letter made or issued for trade/commerce or business purposes. This letter is issued by a company or business entity in the capacity of carrying out its business. This letter is an official type which generally contains offers, buying and selling goods or services.

A commercial letter can also be interpreted as a letter made by a person or business entity to seek profit. The nature of this letter can be internal or external. Internally, this means that this letter can be used for relations between the company itself, from the central level to the branch level. And externally, this letter can be used for relations with other companies or business entities. In general, commercial letters can also be called trade letters or business letters.

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Functions of Commercial Letters

Commercial letters have functions that can be used as:

Becomes a tangible form or proof if an agreement occurs.
Becomes a reminder tool that can be archived and can be seen whenever needed.
Become the author's representative to be able to meet his interlocutor face to face.
Become a guide when carrying out tasks.
Become a tool for promotion.
Becomes an ingredient or tool in making decisions.
It is historical evidence because most historical information is also written in the form of letters

Types of Commercial Letters

There are types of commercial letters, one of which is an order letter. This letter is a letter sent from the buyer to the seller containing an order to purchase certain goods or services. When creating a business letter you need to pay attention to the following points:

First, must mention the order letter for goods or services based on the offer letter or advertisement and so on from the seller.
Second, stating the type and quantity of goods or services to be ordered, should be made in list form to make the checking process easier.
Third, must include how to send it.
Fourth, also mentioning how to pay.
Fifth, stating the desired delivery time.
Sixth, mentioning how to pack it.

There are several types of business letters as mentioned below:

Letter of offer for goods or services.
Letter of request for goods or services.
Letter of order for goods or services.
Payment acceptance letter.
Letter of suspension of payment for goods or services.
Objection letter.
Complaint letter.
Circular letter.
Bill.
Telegram letter and confirmation.

Example of a Business Letter

Below we have attached an example of a commercial letter that is often used in daily activities. This is a type of commercial letter ordering goods from the buyer addressed to the seller.

PT. SOFTWARE DEVELOPER
Jl. Dead End No. 202
Central Jakarta

Jakarta, March 13 2018

Number: 45/IM/IV/2018
Subject: Payment Time

To
CV Grobakz SEO Team
Jl. Keep forward
Purwokerto

Yours faithfully,

We have received your reply to your letter Number: 203/EM/V/2018 dated March 10 2018 regarding the suspension of payments with great attention.

After reading the letter, with all consideration, we inform you that we will provide payment time for invoice Number: 210/EM/IV/2018 amounting to IDR 20,000,000 (twenty million rupiah) for the purchase of goods electronic. We provide a policy of paying off payments within 2 weeks of the specified time.

We thank you for your attention.

Best regards,
PT. Software Developer

That's the explanation regarding Commercial Letter: Definition, Function, Types and Examples. Hopefully this can increase your knowledge about correspondence in trade or business. Thank you for visiting.

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