Business Letter Writing: Account Terms and Conditions

Serious Business Person
Serious Business. Hero Images / Getty Images

Formal English letters have changed recently as email has become more common. In spite of this, understanding good formal English business letter structure will help you write both business letters and effective emails. The only significant change in formal business letters is that the message is received via email, rather than on letterhead. In the case that you send an email, a date and recipient address is not required at the beginning of the letter. The rest of the letter remains the same. Here are helpful phrases and an example of a business letter focusing on opening an account.

The following letter outlines the terms of a newly opened business account.

Useful Key Phrases

  • Thank you for opening an account with...
  • I would like to take this opportunity ...
  • Invoices are payable within ...
  • As..., I will be happy to answer any questions you may have regarding...
  • ...and therefore encourage the use of...
  • We consider this incentive...

Example Letter I

Here is a formal letter providing terms and conditions for opening an account. This letter is an example of a letter individual clients might receive.

Dear ____,

Thank you for opening an account with our company. As one of the leaders in this industry, we can assure you that our products and our services will not disappoint you.

I would like to take this opportunity to briefly set forth our terms and conditions for maintaining an open account with our firm. Invoices are payable within 30 days of receipt, with a 2% discount available if your payment is remitted within ten (10) days of receipt. We consider this incentive an excellent opportunity for our customers to increase their profit margin, and therefore encourage the use of this discount privilege whenever possible. We do, however, require that our invoices be paid within the specified time, for our customers to take advantage of this 2% discount.

At various times throughout the year we may offer our customers additional discounts on our products. In determining your cost in this case, you must apply your special discount first, and then calculate your 2% discount for early payment.

As the credit manager, I will be happy to answer any questions you may have regarding your new account. I can be reached at the above number. Welcome to our family of customers.


Kevin Mangione

Online Terms and Conditions 

Here's an example of terms and conditions that might be provided on a website. In this case, the language is formal, but directed to all. 

Key Phrases

  • The user agrees to ...
  • As a condition of use, you agree to ...
  • ... you promise to not ....
  • ... for any purpose

Welcome to our online community. As a member, you will enjoy the benefits of a vibrant online social forum. In order to keep everyone happy, we have these simple terms and conditions. 

The user agrees to follow rules posted on the user forum. Further, you promise to not post inappropriate comments as deemed by forum supervisors. As a condition of use, you agree to not post advertisements of any kind. This includes simple messages posted in online chats. Finally, the user agrees to not use content posted in the forums on other sites for any purpose. 

Practice Letter

Fill in the gaps to complete this short letter setting out conditions to begin writing your own terms and conditions or emails. 

Dear ____,

Thank you for __________________. I'd like to take this opportunity to assure you that _____________.

I've provided this terms and conditions for ____________________. _____________ are payable within ________ days of receipt, with a _______ discount available if your payment is made within ________ days of receipt.

As the __________, I will be happy to answer any questions you may have regarding your new account. I can be reached at ________. Thank you for your _________ and ____________. 



For further types of business letters use this guide to different types of business letters to refine your skills for specific business purposes such as making inquiries, adjusting claims, writing cover letters and more.

For more detailed help with standard business writing skills, I highly recommend these business English books.