OPERAIING OPPORTUNITIES

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

I I t 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 few 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 o[ continuity in the availability of funds usually follows only if the borrower was a poor bet from the outset.

Mountain States

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(4) There is no such thing as gross profit, so take the pledge! Never let that term pass your lips in the presence of others.

Thank you! And higher profits to all!

Footnotes: We would really like to hear from you regarding the theme of "Profit Awareness and Education" or any of the points expressed during this promotion. Call us at 303-793-0859 or toll-free at 1-800-365-0919.

Now that you agree there is no such thing as "gross" profits, you are probably wondering how it started. The accountants did it. They want you to think prematurely that you might end up with a profit so you can afford to pay them before you close the books for the year. Blame them!