The credit manager of a substantial wholesale trading firm received a visitor who gave his name as Crispin dela Cruz. He was a Sales Engineer in a construction firm who wanted to go business for the sale of construction materials on his own. Engr. Dela Cruz felt that he would need more help from the credit department than from the sales department. Accordingly, a meeting was arranged between Engr. Dela Cruz, the credit manager and the sales manager of the trading firm.

Engr. Dela Cruz claimed that he worked for about two years as sales engineer and then for three years as sales supervisor and one year as manager. According to him he saved P 100,000 which he could put up as initial capital and if a credit of another P 100,000 is extended to him he could start the business. Then he said to the managers "I hope you are interested and will study my problem".

The credit manager and sales manager said that they were always interested in helping new business get underway when those business seemed to have promise for the future.

The credit department proceeded to make a thorough investigation of Engr. Dela Cruz, antecedents and reputation. The information was not favorable but highly complimentary. He was well known, well liked, hard working honest to the bone and most conscientious.

After the credit manager had visited the proposed location of the business, he talked with the head of division of their firm. He informed the division manager that from his point of view, the risk too great. But while he thought the risk is substantial yet he concluded that the risk should be accepted in view of the experience and the reputation of the engineer. In every place, the engineer, he acquired customers who kept coming back. His merchandising ability will help him but more than that he would be able to manage with small capital. He knows the figures, expenses ad what he is talking about.

The sales manager was less enthusiastic than the credit manager and suggested that the account to be turned down.

Based on your point of view, how would you handle this situation?