OPERANNG OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Dallas, Tx.75243

f lt HAT can a lumber dealer do UU about the domino effect failing lending institutions are having on their customers? This question has come up several times in the past flew months.

The problem is very real, but a little off a merchant's reservation, so we talked to a few friendly bankers.

They were unanimous in their Position that there is very little a dealer can do to prevent a failure of a financial institution from affecting his customers. Their advice to lumber and building material retailers was of one mind. Know your customer. Make the necessary credit checks. Do your homework before you do business with anyone and stay current as time passes.

Three lending institution presidents, an executive vice president and a past state banking association president were unanimous in another area. "lt's difficult enough to implement what the Congress of the United States actually legislates, but it's almost impossible to deal with what it might come up with."

What each was saying is that under the current rules, the FDIC and the S&LDIC aren't going to let a bank or a savings and loan go belly up. But, at the same time, they were cautioning against complacency and changes in the rules.

If one of your customers loses access to funds because of lender closing, the chances are almost 100% that it will be only a short disruption in availability. The deposit insurance agencies are standing in the wings ready to take over the management of an insured agency. It's not uncommon for them to take over on Thursday, close on Friday and reopen on Monday. The important thing is your customer must deal with an "insured" institution for this scenario to apply to him.

If your customer has borrowed from an insured lender, the worst to be laced is a new loan officer examining his credentials. Many of the loans interrupted are merely reinstated. Trouble or loss of continuity in the availability of funds usually lollows only if the borrower was a poor bet from the outset

Home Genter Merchant (Continued from page l7)

kept secrets in town. Tell your story boldly in your advertising. Talk about your buying abilities, merchandising skills. Iow price guarantees. ample parking, friendly help, how-to-do-it classes, easy-to-shop store, convenient hours, delivery policies, satisfaction guarantee and other shopping benefits. Tell it and show it. Bacr it with outstanding advertised specials.

And, after you tell it to your do-ityourself customers, tell it to your contractor, commercial and industrial accounts and keep those pickup trucks out of your competitor's parking lot.