The sequel proved the credit's man's conclusions to be right, as within a very short time the affairs of the house were suddenly and shockingly brought to pub lic attention thru the self-destruction of the proprietor.
Tho the house had succeeded—undoubtedly thru some form of deception—in keeping up its mercantile agency rating, it was in fact hopelessly insolvent.
A good memory is of great value to the credit man. He is constantly called upon to keep in mind a variety of facts regarding trade conditions, the history of many of his accounts, approaching due-dates and the like. While it would be a great mistake to try carry ing all his information "under his hat"—especially in view of the fact that his enforced absence on account of illness or for any other cause would most likely prove embarrassing to his substitute—the credit man, by reason of the nature of his work, is constantly drawing upon his memory for important facts relat ing to the work of his department.
A credit man needs, moreover, a thoroly analy tical mind. The ability to examine facts dispassion ately and to form conclusions based strictly upon the evidence at hand, is necessarily of value to everyone, whether he is engaged in business or not; but to the credit man such ability is indispensable.
An open mind, an unbiased judgment, and firmness in executing his policies—these are among the mental qualities that we look for in a man who presides over the credits of a business house.
5. Moral and social qualities.—To say that the credit man should be governed by high moral stand ards is merely to state what should be true of every business man who hopes to make a lasting success of his vocation. Yet the credit man, in his desire to serve his house, is perhaps put to the test in this re spect more frequently than any other business func tionary. Not infrequently, for example, he is called upon to take the customer's side against the house—a duty which a morally weak man would be strongly tempted to shirk.
Always a man of his word, the competent credit man will make neither a promise nor a threat unless he is prepared to carry it out to the letter. To use courtesy and kindness is quite necessary if he would gain and hold the good-will of his customers. In fact, readiness to help an unfortunate dealer who needs as sistance may be as much of a credit man's business policy as insistence upon the observance of credit terms under all normal circumstances. A customer
whose business by such means has been saved from extinction is not likely to withdraw his trade in favor of another supply house.
Social qualities which enable him to mix readily with all sorts of men and to be liked personally also form an important part of the credit man's equip ment. A disgruntled customer—no matter whether or not there is sufficient reason for his displPasure—is a liability to the house, and may require very tactful and diplomatic handling.
6. Special training.—While the value of a good general education needs no emphasis, the credit man should have had also a broad business education. A knowledge of business processes, factory organization and office management is important. So also is familiarity with distribution plans and selling proc esses. The latter involves, of course, also an under standing of advertising as related to marketing of products, and of the various avenues thru which the public is made acquainted with the manufactured goods.
Tho it is not necessary that he be an experienced accountant, the credit man should have a very fair understanding of accounting principles and methods, since he is constantly called upon to analyze financial or property statements issued by credit-seekers. I3a1 ance sheets and profit-and-loss statements reveal facts of great importance to the credit-giver. Not infre quently, the credit man is also in charge of the ac counting department of his house, in which case he must as a matter of course understand both the prin ciples and the practice of modern accounting, includ ing an elementary knowledge of cost-finding princi ples.
In addition to his knowledge of production, market ing and accounting, the credit man requires consider able knowledge of financial subjects. Most likely, many of his customers are corporations, hence it is im portant that he should know something of corpora tion finance and the legal aspect of corporate business. Again, the credit man has more or less intimate deal ings with the banks. He should therefore be ac quainted with banking principles and banking prac tice in order to know how the banks can serve his in terests most economically and efficiently.