The methods of debt collecting

Chapter VIII The methods of debt collecting The trader must make an effort to collect the debt on time before it becomes an old debt, for such a debt is worse the older it is, and that should be avoided. In the trade business, wasting time is equal to wasting money, so learning how to effectively collect your debts is crucial. Knowing how to finance a purchase is not as significant a skill as knowing how to collect debts. This is, without a doubt, one of the essential skills a trader needs to acquire. Make a list of all your debtors and use this as a means of record keeping and a reminder to be referred to on a monthly basis. Urge them, by as many different means as you can think of, to pay the debt on schedule. If nothing else can be done, either write off the debt or negotiate a new agreement with the debtor so even if the debt will be old in your book, it will be new for him. Update your records and do not allow them to become outdated because you risk becoming a poor man. Occasionally, call on your debtor one, ten or fifteen days before the deadline because it is not a bad idea to remind him: “Y our payment is due in a few days but I would appreciate if you paid me now because I have some deadlines to meet myself.” Even if he declines, which is usually the case, when the deadline expires you will collect what is rightfully yours more freely and in good spirit for, as Seneca says in his tragedies: “He who asks for something in a fearful manner, risks being declined.” I advise and urge traders to

employ young men who are capable and of a suitable disposition for a task like this, because debts are more easily settled if collected by such young men who find nothing discreditable in soliciting and pestering the debtor until he pays what he owes, and who can bring flush to his cheeks a thousand times in the interim. It appears to me that Genovians and Florentines are much more inclined to such methods, be it within their country or abroad.