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Rh ately. If not handled as they should be, the loss of their trade will be much more serious to the house than would the loss of a retail debtor’s trade.

Careless and indifferent merchants require prompt, firm treatment. Persuasive measures will avail little with this type and one or two firm letters followed by hard tactics,— prompt, aggressive, severe measures at once,—will fre- quently bring in the money. Merchants living beyond their means must under no circumstances be handled gently. Any one who lives extravagantly without the nec- essary income is likely to withdraw money dishonestly from his business. He can easily quiet his conscience by persuading himself that the business is his very own, that being his very own, all of its receipts and revenues belong to him. He does not consider it theft to help himself to what he needs, whenever he runs a little short, instead of drawing a certain salary and taking his profits at the close of the year. Every extravagant debtor becomes sooner or later irretrievably involved. Credit must be ex- tended very cautiously to this type and payments demanded immediately when due. Harsh measures will offend cer- tainly, but their trade is undesirable and when they become known, they are given little credit except by those friendly to them.

The irresponsible merchant must likewise be handled un- sparingly. He is on the road to insolvency, or to being finally forced to closing up shop and leaving for parts un- known. It is only a matter of time; perhaps he can hold out for some years, perhaps he will be gone tomorrow; he is an unknown quantity.

Let me reiterate the importance of knowing your debtor.