This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 edition. Excerpt: ... CHAPTER VIII RETAIL CREDITS AND COLLECTIONS {Continued) CREDIT POLICIES The terms of credit and the acceptance of credit risks must be governed largely by the type of store, its size, location and type of customers making up the larger part of its trade. A thirtyday basis of settlement might be admirably adapted to the needs of a high-grade shoe store in the city, whereas it would be absurd for a store dealing with the farm trade. The farmer is generally compelled to wait until his crops are harvested before he is in a position to meet his credit obligations. Annual or semi-annual settlements might be called for in this case whereas they would be ruinous to a city store where there is a continual shifting of population and a limited acquaintanceship between merchant and customer. A typical city store serving a general trade would probably find terms not exceeding thirty days, or payment on the first or other designated day of the month for all previousmonth purchases most suitable to the majority. Another store in a mill town where the workers are paid semi-monthly would arrange its credit terms so that due dates would correspond with pay days. In other words, the merchant in each instance must consider the conditions under which the greater portion of his customers are working and attempt to adjust his credit policy to harmonize. The amount of investigation into the character and capacity of a credit seeker would likewise be governed by the make-up of the community. In small towns, especially if they happen to be in a farming community where the majority own and operate their own places, the store keeper would probably have a personal acquaintanceship with everyone in the place. Any set form of credit investigation under such conditions...