PLAN No. 540. A NOVEL COLLECTION IDEA
An eastern man, who had made a special study of human nature and of business morals, evolved a novel plan which enabled him to establish a small collection agency, and expand the business so rapidly by means of his idea that in the course of six years he was the head of four large collection agencies in as many prominent cities, and was deriving a large income from it. His letter heads and stationery all bore his name as “attorney and counsellor at law.”
His plan, though effective, was very simple: Securing accounts for collection, he would send to a bank in the debtor’s city a sight draft on the man owing the account, with instructions to the bank to return it to him promptly if not paid when due. He also had printed on the margin of the draft a detachable slip, saying: “No protest. Take this off before presenting.”
He knew that every man wants to stand well in the estimation of his banker, as the man who keeps his credit good can obtain bank accommodations which would otherwise be denied him, and he knew that if the account was correct, the debtor would pay it to the bank sooner than to anyone else. Therefore he was very successful in making prompt collections. In the few cases where his method failed to bring the money he was not out anything as he charged the creditor 10 cents for every draft so sent out.