A Credit Reference Letter is a crucial document in German banking and business practices, typically requested when establishing new business relationships, applying for loans, or participating in significant commercial transactions. The letter provides authorized third parties with reliable information about an individual's or company's financial standing and creditworthiness. Under German law, these letters must carefully balance information disclosure with strict banking secrecy requirements (Bankgeheimnis) and data protection regulations. The document typically includes details about the duration of the banking relationship, credit history, and general financial standing, while maintaining compliance with the German Banking Act (KWG) and GDPR requirements. Credit Reference Letters are particularly important in international trade and business relationships where German companies or individuals need to demonstrate their financial reliability to foreign partners.

1. Letter Header: Bank's letterhead, contact information, date, and reference number

2. Recipient Details: Full name and address of the requesting party

3. Subject Line: Clear indication that this is a Credit Reference Letter (Kreditreferenzschreiben)

4. Opening Statement: Formal greeting and confirmation of the purpose of the letter

5. Client Information: Details of the subject of the reference (individual or company name, relationship duration with bank)

6. Account Standing: Statement about the account relationship and standing with the bank

7. Credit History: Information about credit history, existing credit facilities, and payment behavior

8. Financial Assessment: General assessment of financial standing and creditworthiness

9. Closing Statement: Standard disclaimer and willingness to provide additional information

10. Signature Block: Authorized bank representative's signature, name, and position