Every business man must, of course, have a gen-
eral knowledge of business methods. But the credit
man must be somewhat familiar with the details of all
the lines of business in which his debtors are engaged,
in order that he may determine from the facts which
he has before him concerning an applicant for credit
whether his capital, his sales, his expenses, his past
experience, are such as to give promise of his ultimate
success. He must know at least the elements of com-
mercial law, the statutes of exemptions, the financial
responsibility of corporation officers and of the mem-
bers of a partnership, the legal age of open accounts,
and similar generalities. He cannot have a detailed
knowledge of these facts, but if they are merely a part
of his mass of general information, his credit making
will automatically and unconsciously be influenced
and strengthened thereby.
The second necessary characteristic of the credit
man is a keen insight and an analytical mind. The
work of a credit man is a succession of decisions,
each one of importance, but necessarily made hastily.
These judgments are not arbitrary, but are based on
a study of certain groups of facts, usually of four
kinds: First, the general knowledge of the credit man
himself; second, impressions gained by him from per-
sonal touch and acquaintance with the customer;
third, specific facts concerning the character, ability
and resources of the applicant, gained in various ways,
and fourth, if he is an old customer, his record with
the house itself.
