"After getting stung a few times, our credit department took it as a matter of pride to identify the bustout before extending credit. To do so requires one to maximize his or her credit knowledge with good communication skills and common sense.

"Common sense helps the creditor determine how "appropriate" it is for this prospect to order your product. When the order source is unusual, you must satisfy yourself that the references given are legitimate companies. Check with telephone directory assistance, Dun & Bradstreet, and other business publications. Ask your bankers what they know of this principal/business.

"It is much easier to prevent the scam than to try to recover after the fact. Use good credit skills, talk to the prospect and others as necessary, and above all listen to that inner voice. Many bustouts like the thrill of conning the creditor. As an effective credit person, you can enjoy the thrill of exposing the scam."

Richard A. Quadrini, CCE
Career Resource Center
Pittsford, New York

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