Yaun Co. Credit Manager Outlines Philosophies“The credit man is not an ogre. Usually he is friendly and sympathetic. But he worries.” This is the way George Neumann sees himself. He has been with Yaun Co. over 12 years in the dual capacity of office and credit manager. As credit manager, George stated during an interview, he has three major tasks: First, pass on new credit applications; second, enforce credit and time limits, as set by company policy; and third, effect collection of all moneys due. “The overwhelming majority of our customers don’t even know I exist,” George went on, “and that is good.” He called these people “the backbone of our business, to whom we are very grateful.” They are the “regulars who purchase their requirements from us month after month, pay promptly when the monthly statement reaches them. There is practically no limitation on the amount of credit we extend to them.” When asked what makes these “regulars” different from other customers, George explained: “They are good businessmen. They understand that credit, as extended by the wholesaler to them and as they extend it to their customers in turn, is a convenience and not a financing plan.” They conduct every aspect of their business in a business-like manner, and that includes billing their customers promptly for labor and materials expended for them, collecting as per agreement, and settling their own obligations promptly.” Does Yaun Co. have any problem accounts he was asked. The answer was short: “Who hasn’t?” Fortunately, George said, they are few, but the worry they can cause the credit manager is out of proportion to their number. How do they become problems? George admitted that there are a lot of reasons, but the most frequent one is an un-business-like attitude directly traceable to poor bookkeeping practice. Many of these people enjoy working, but they hate bookkeeping, so they work all day and sometimes half the night, then naturally they have no time to sit down to study their costs, to make out their bills to their customer and to collect what is owed them. Result: They are in trouble, and unless they change their habits regarding their paper work, they’ll never get out of it. George’s suggestion: “Set aside one certain morning, or one certain day, whatever time is needed, regularly each week, and do all the paper work and collection effort that your business requires. Evenings are not good for this: tiredness, interruptions, family doings, special activities, the need for recreation, all hinder evening bookkeeping.” Occasionally, even the best-managed business runs into financial difficulties. George says, “We’ll lean backwards to make suitable arrangements so that a customer can settle his obligation and maintain his self-respect. Time becomes a matter of secondary importance, and character moves to first place.” Daniel Yaun, Yaun Company’s Controller and Credit Manager, continues managing with this same philosophy. |