Credit Matters

Article of Interest

I will tell them you paid

There is the story of a young man living in a small town many years ago. He owed money to many different business people in the town and surrounding district. When asked for payment, he always told his creditors that he was penniless.

Despite the fact his creditors had a lot of power and could have bashed him up (you could get away with beating up your debtor in those days) or refused him credit, they rarely did so. For some reason, perhaps because he seemed a nice young man, they usually felt sorry for him. Therefore although they often demanded payment, his creditors rarely received any money to clear their debts.

However one day, a business man who was one of the young man's creditors, had an idea. This business man believed he knew something about human nature and decided to test his beliefs. He went to the young man and said, "If you do not pay me at once, I will go to your other creditors and tell them you paid me in full. But if you pay me in full now, I will say nothing."

The businessman was paid in full the next day.

Credit Matters Comments

There are many business and strategy implications within this one little tale of life many years ago.

The first business outlook is obvious; when a debtor will not pay at first, never give up trying, but try different tactics.

Second, another strategy is talk with your debtor.

Third, if you continue to do business in the same old way, you are doomed to the same old results.

Fourth, fraudsters can appear to be nice people and may have the resources to pay you, if you know which of their buttons to press.

Source: A business magazine from many years ago.

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