4. Obtaining advance information.—Obviously, the duty as well as the aim of a good credit man is to extend to customers the greatest amount of credit warranted by their condition. Accordingly, it is im portant that the house, whenever possible, should ob tain early, as well as full, credit information about its customers. To this end, the credit man in addition to keeping in close touch with the status of those who already are customers of his house, frequently en deavors to supply himself in advance with informa tion relating to the condition of merchants whom he regards as prospective customers. In such cases the salesmen are instructed to furnish reports upon the merchants in their territory to whom they have not yet sold goods. The credit man in the home office will meanwhile supplement such information with what he is able to obtain thru the regular credit agency chan nels.
5. Forms to be filled out by salesmen.—It is al ways desirable that the salesman furnish a report upon every new customer to whom he sells a bill of goods. For this purpose a form similar to that which was shown on page 86 is usually employed. This re port which may be called "Salesman's New Custo mer Report," is attached to the order and sent with it to the home office. One advantage in the use of such a report is that it teaches the salesman to ob serve the characteristics of a good credit risk, and compels him to consider the probable paying ability of each new customer. Not infrequently such a re port is found to be so complete and satisfactory that the credit man can check the order without having to wait for further information.
In some cases, especially where the customer is lo cated in a distant territory, the salesman, on taking a first order, fills out and sends to the mercantile agency a "Direct Inquiry Ticket"—a form which the mer cantile agencies supply for that purpose, and by means of which the agency's report generally reaches the credit man's hands almost as soon as the salesman's order reaches the sales department.
6. Handling new orders.—On the arrival of a new order, the mercantile agency's rating book is first con sulted in order that the rating given may be noted and the spelling of the name, the address, etc., veri fied.
The next step is to make out a triplicate "Notice of New Customer." These notices are padded suc cessively in white, pink and yellow, or in any other three colors selected. They are worded exactly alike.
One sheet goes to the sales department, and shows at once that the order is from a new customer. If sufficient credit data are at hand the credit limit may already have been 'fixed, and will in that case appear on the sheet in the place provided for it. Where the credit limit is missing, it shows that an investigation of the risk is still being made. The information con tained on this sheet is used by the sales department as a means of classifying the customer, and affords at the same time a basis for a letter acknowledging the order, or for whatever other correspondence may be called for.
The second sheet goes to the bookkeeping depart ment. Its receipt is a warrant for the bookkeeper to open an account with the dealer named thereon. No new account is opened without authority from the credit department.
The third sheet remains in the credit department until the investigation is complete. Whatever addi tional information may be obtained is attached to this sheet, and the final limit is indicated. Thereupon the credit man's signature is affixed, after which the papers go to the bookkeeping department, where these later data are duly noted.
7. Holding the order pending investigation.—In case an order must be held for lack of sufficient credit information, the carbon duplicate, before going to the sales department, is usually rubber-stamped "New— Held for Credit." At the same time a notice is sent to the salesman informing him that an investigation of the customer is pending. This is done so that the salesman may be kept in touch with the progress of the order. When the information is complete and the credit limit is fixed, the salesman is again notified, in order that he may have opportunity to comment on the credit man's decision if he considers such deci sion unjust to his customer.
8. Final disposition of the order.—The credit in vestigation now being completed, and all data de sired by the bookkeeping department being duly en tered upon the ledger account, the credit information is filed under whatever system of filing is used. For convenience sake, and as a check upon the correctness of the address, etc., an index card is made out. With a file of these cards at hand, the credit man is always in immediate possession of the salient points touch ing his customers. All further information relating to the present status of their accounts is, of course, readily obtained from the bookkeeping department.