Page:Roy Ralph Hottman - Practical Collection Procedure (1923).pdf/20

6 but himself. Just recently, a debtor to whom I had for- merly extended credit, was adjudicated bankrupt. His assets were about $4,000.00 with liabilities of $8,000.00, and among the creditors listed was one with a claim of $3200.00. This may seem exaggerated but it is an actual fact. An error in allowing the account to run up to such a figure, with the meager assets that the debtor possessed, was inexcusable and the alert credit man would have stopped this particular debtor’s credit long before the crash came. Fortunately, however, the creditor in this case was financially able to withstand the loss.

The ability to make quick decisions should be cultivated. When the account begins to backslide, it is not necessary that the credit man become unduly alarmed, but he should at_once make a thorough investigation, and if his suspi- cions be confirmed, he should make his decision quickly and act quickly. There should be no delay. Each day prolongs the agony and reduces the chances of collection. Prompt action is a virtue to be extolled when the credit manager finds himself in such a dilemma, and the more quickly he acts the better are his chances of obtaining the money.