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Post on 14-Jul-2015
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Cash is the life blood of any
business
“Four out of five small businesses fail in the first two years due to lack of capital (cash flow).”
Small Business Administration
The Problem:Billing & Collections
• It’s expensive to do
• Customers often don’t pay on time
…Both of Which Result in CASH FLOW Problems!
The Need: Cash Flow
Invoicing the Customer is Expensive :
– Average Cost: $4.17 per invoice for small businesses*
– Internet research shows the average cost to be $9.65 for all businesses• Forms, Envelopes• Postage• Accounting Labor• Follow-up Labor• Equipment/Overhead• Cost of Outstanding Money
* Source: 1998 Study by Harvard Business School
Innovative Services
Billing & Invoic ing Services
Other Cas h Flow Services
- Pre Authorized Checking
What would it be worth to you if you could get payments from your customers on the same day of the month…every month…without ever sending out an invoice?
Our Clients Say… “It’s Worth A Lot!!”
The Traditional Billing Process
Business’ BankBusiness’ Bank Customer’s BankCustomer’s Bank
BusinessBusiness
Invoice is SentInvoice is Sent
Payment is ReturnedPayment is Returned
CustomerCustomer
How Pre-Authorized Checking Works
♦ Your customer completes & signs the pre-authorized payment form
♦ You forward the customer information to our processing center via telephone, fax, US Mail or delivery service
♦ We enter your customer’s information into our system
♦ We print a paper demand draft (check) on the same day(s) each month and deliver them to you for deposit
You’re Already Familiar With This Service
• Used for years by. . .• Mortgage Companies
• Insurance Companies
• Health Clubs
Now Pre-Authorized Checking Is Available To
Every Business…
Including Yours.
Other Businesses Using Our Services
Pager and Voice Mail Services
Self-storage Rentals Private Schools Trash Pick-up Companies
Non-Profit Organizations Churches/Synagogues
Answering Services Trade Schools
Newspapers Lawn Services
Alumni Associations Apartments
Bottled Water Companies Cable TV Services
Day Care Centers Pool Services
Public Radio & Television Home Security Companies
Utility Companies
… and Many More
Why Do You Need Drafting?
6 Regular monthly payments come in automatically
6 Customers that pay over a period of time pay regularly
6 You can save money by not sending out monthly bills or invoices
Why Do You Need Drafting?
6 Even if you don’t use drafting, your competition will
6 You can use the time and money spent on collections as profit
6 You can offer your customers another payment option
How Much Does It Cost?
• We charge a small fee per check• Fee ranges from $1.50 to $3.00
depending on:– Number of customers participating– Anticipated length of relationship
A small price to pay for the peace of mind you’ll get from having your
customers’ payments IN YOUR HAND!
Example: Home Security Co.
♦ 1,000 customers♦ $30 average monthly fee♦ $30,000 monthly revenue♦ Send out invoices @ $4.17 each♦ 1,000 customers x $4.17 = $4,170
It’s costing over $4,000 a month to collect $30,000!
Not Using Pre-Authorized Checking
Example: Home Security Co.
♦ 1,000 customers♦ Half participate in PAC (500 Customers)♦ 500 still cost $4.17 each = $2,070♦ 500 now at $1.50 each = $750♦ Total invoicing cost now just $2,820 per month
A Savings Of $1,350 A Month…& Half Of All Money Is Collected Instantly!
Using Pre-Authorized Checking
How Much Money Can You Save?
Tanning Salons – 500 CustomersSave $1,335 per month for each location
Child Care - 1,500 CustomersSave $4,005 per month
Condo Association - 250 UnitsSave $668 per month
What About You???
Examples (assuming $1.50 fee per check)
How Much Money Can You Save?
What Is It Worth To Have:
Your customers’ payments in your hand
Ready to deposit
On the first day of the month
Every month
The Bottom Line: Get Your Bill To The TOP of The Pile
When your customer is deciding whether to pay you or someone else, isn’t it nice to know that we get YOUR
money automatically?
Your Options:Large Payment Processing Companies
♦Want only large accounts♦No local service ♦Too expensive for small
merchants♦Limited services♦Customer service issues
Other Options: Institutional Banks
u “Hidden” Feesu Conversion fees, diskette processing fees, debit fees, reversing
fees, correcting fees, credit fees, origination fees, pre-note fees, addenda record fees, return item fees, notification of change fees and monthly account minimum fees
6 Software to buy or lease6 Complete Credit/Background Checks may be involved6 Processing options may be limitedu 5 Day Pre-delivery Prior to Processingu 2 Week Pre-notification of Changes/Additionsu 10% to 20% Reserve At All Timesu YOU DO ALL the Work
u Initial Data Entry and Updates, Backups, Modem Transfers, Follow-ups
Why Use Us?It’s Simple
• We do all the work• Provide all paperwork & documentation• No hidden fees• No credit checks on customers• No software to buy, learn, or maintain• Changes are easy to make• WE GET YOUR MONEY…• YOU RUN YOUR BUSINESS!
Enrollment …Simple
♦One-page agreement♦No long term
commitment♦We send notice to
your bank♦You’re done
Professional Billing and Invoicing
♦ Monthly Invoicing/Billing♦ For customers who will not sign up for a draft♦ We can handle an unlimited number of customers♦ Fixed or Variable Billing♦ Invoices are sent on time every month♦ You never have to chase your money again
Billing Services: Savings Example
♦ Same Home Security Co. With 1000 Customers
♦ Only 500 are on Pre-Authorized Checking
♦ That Leaves 500 Customers to Invoice
♦ Your cost was $4.17 per invoice
♦ We will do the work for half… $2.08 per invoice
♦ 500 customers @ $2.09 savings per customer =
Savings of $1,045 Every Month
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