Dear :

Thank you for your letter of [date] in which you asked about our credit policy.

We appreciate your interest in our products and the orders you have placed with us. Unfortunately, we are not able to provide the kind of credit you request. As you probably realize, our [products] are sold at extremely competitive prices which allow us only small profit margins. This prevents us from offering credit to our customers.

We hope you will understand our reasons.

Sincerely yours,

[name]

[title]