Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1915-01-01
SOME RULES iE GAME
or EXTENDING cREpiT.

business man of shosh0ne, has formas
lated For the IoHrDal ~ request, Tor
/ tho blAo0t 1T busineaa men genoraiy,
,ghat seems to b. practical plan 81
! dealing with che credit system. which
az rormrlns periods aiw ayl causes the
merchant more or less anxiety Mr.
/ Ieshleiter states thni the article APP
pended ia not bis own IN conception or
composition but It cmbodiea his rules
Tor action and he has found the method
described 20 work the best results
Here 10 the substance Of his obsorya-
lions on the matter Of credit
credit men class buyers according to
thelr Willingness and their ability to
pay their bills Ia general way there
are three CLASSES. Those who can and
are willing to pay. those who are hon
est but of limited MEANS and those who
are dishonest Allowing discount and
chnfslng interest has its principal ef-
feet only on the paying habits OF the
first class -and tho dealers pocket
book. The man who secures credit
sololy on the strength Of hio honesty
naturally has his desire TO pay quick
cnod by his anxiety To avoid the inter
est penalty But he 90 In no position
To hubble about terms and has no dis
position TO do 30 when they are fair
The man who is dishonest care nothing
a an abou, terms Of credit AS avoid
ing payment IS his aim, whether the
bin includes interest or not, is Of no
Importance to him.
Unfortunately bad accounts are us
ualy confined TO the two classes Of
buyers least concerned about the in
tercst and discount plan It is OBJ
vlous. therefore. that any credit poll
icy worthy Of tho name must provide
means 10 reduce the chances Of con-
tracing bad accounts with those buy
ers
Nearly all bad accounts are mistakes.
Occasionally sudden misfortune over
takes a man Of means and leaves him
ponnlloss or a man Of honest habits
win develop totally unsupported !
streak and SO wrong These are
chances every business man takes.
The bulk Of bad accounts. however. |
result from errors in judging the GUS
toner's character or his ability TO pay,
or both. Character reading Is far from |
an exact science. even with experts.
with the average business man II IS
almos, entirely guesswork. Perhaps
the most common expression when an
account is being charged off is, We'll
+ was afraid Of that fellow when
sold him. lie didn't look good TO me-"
That may prove It is human nature TO
sock and find excuses for ourselves,
hut la any event the loss remains the
same. The sale was made, and The
ban was not paid THAT is an that
counts
eliminating Gussswork.
The safest plan Is TO eliminate guess
work as Tar as possible. How
customer pays some bills
may not be positive indication of
his manner in meeting all of them,
but a is much better than none and
often that Is all the Information avail
able
Ia most cases the treatment he gives
n oss who have Trusted him, is likely
10 he the same sort ~ treatment all
cerditors win receive Certainly II
Inquiry shows that he does not pay
o,her bills a. an IL would be part of
wisdom 20 refuse credit
The average honest man VIII vol
unfairly give references when they
are not forthcoming ina the same
breath mat crcdi, d requested, there
should Doe no hesitation 10 askins for
them. Tho prompipess with which
hey airs supplied the character u the
parties referred to and the nature %
Ire reports they make should b. the
factors in deeidine tbs
amount % credit g any mat seems
safe 20 srant.
Getting & uue on whether ~ noi
he purchaser can ne made 20 pay r.
less difHeult and tho results
are tnore exact The records q The
soanty Recorder win show the ewner-
'hlp ~ property and disturbances
with this Information reliable e.
'imate u me equity IN the property
.an Be- made add 10 this e,lfante
< reeeft from tho sank he deals with