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Transworld Systems Inc. Making Cash Flow® Transworld Systems Inc Dick Neary (941) 350-9918 [email protected]

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Page 1: Making Cash Flow For Your Business

Transworld Systems Inc. Making Cash Flow®

Transworld Systems IncDick Neary

(941) [email protected]

Page 2: Making Cash Flow For Your Business

Leading Our Industry

• Transworld Systems has been in the accounts receivable business since 1970.

• Wholly owned division of NCO Financial who is ranked #1 in our industry.

• We have assisted over 200,000 clients in resolving $6 billion in the past decade

• We provide local customer service and support with over 100 offices nationwide.

• We have a local collection center in Getzville, NY• Our Commitment:

“To deliver the most progressive and effective

cash flow tools available to our clients” Making Cash Flow®

Page 3: Making Cash Flow For Your Business

Industry Rankings

Making Cash Flow®

Page 4: Making Cash Flow For Your Business

Opinions from Experts

Making Cash Flow®

• “In addition to the superior collection rate and speed of recovery, Transworld’s low fees provide the client with a 30% - 70% savings.” - Forbes Magazine

• “Transworld gets credit for the highest recovery rate in the industry.” - Barron’s

• “This company has a collection rate of well over 50%. The typical collection firm only gets 20% and keeps 25%-50% of recovered funds.” - Fortune Magazine

• “Transworld has been an MGMA AdminiServe® Partner for over 12 years. In that time, they have collected $430 million for our members.” – Medical Group Management Association (MGMA)

Page 5: Making Cash Flow For Your Business

A Proven Partner

Making Cash Flow®

hfma PEER REVIEWED:HFMA's Peer Review process is designed to provide healthcare financial managers with an objective third party evaluation of products and services used in the healthcare finance workplace. The Peer Review process consists of a rigorous eleven-step high-level screening process by a peer review panel consisting of current customers, prospects who have not made a purchase and expert HFMA Peer Review Board members. Peer Review status approval of the product or service and its performance claims are based on the following criteria:Effectiveness Quality and usability Price Value Customer and technical support

Page 6: Making Cash Flow For Your Business

Some of Our Local Clients

Making Cash Flow®

AUTO SERVICE

BANKS

CREDIT UNIONS

COURT REPORTERSDENTISTS

DOCTORS

GOVERNMENT

Anker’s Auto ServiceInline PerformanceMetro FordWalter’s AutobodyAlliance BankPioneer Savings BankAdirondack Regional Credit UnionFulton County Credit UnionDianne E. Wilson Court ReportersAndrew Frank & Associates DMDAdirondack Dental GroupCapital District Pediatric DentistryDeLuke OrthodonticsDr. Steven Messing DMDAlbany Center for Pain ManagementCapital Region OB/GYNCapital Region Urological SurgeonsDr. Michael Krajick DPMHudson Valley UrologyColumbia County Treasurer

Watertown Daily Times

Page 7: Making Cash Flow For Your Business

Some of Our Clients (Con’t)

Making Cash Flow®

LAW FIRMS

OFFICE SUPPLIESOIL COMPANIES

MANUFACTURERSNURSING HOMES

PLUMBERSPUBLISHERSRETAIL STORESSCHOOLS

SUPPLIERS

THERAPYVETERINARIANS

Antokol, Reisman, & CoffinKnappek, Gabrielle & BottiniHiscock & BarclayHummels Office PlusCharlton Oil CompanyHoffman & Miller Oil CompanyG A Bove FuelsPosinelli Fuels, Inc.Crawford Door & Window SalesFort Hudson Nursing CenterPalantine Nursing HomeCrisifulli Bros PlumbingNew York Legal PublishingJohn Marcella AppliancesCenter for Natural WellnessThe Brown SchoolAlbany FoamBIS Copy SystemsCapital Region Physical TherapyLatham Animal Hospital

Page 8: Making Cash Flow For Your Business

Let’s Agree on a Few Things

1. The older an account gets, the harder it is to collect2. There is a difference between a casual delinquency and a high-risk

debt3. Consistent and effective follow-up can be challenging & expensive4. Most businesses would prefer to never have to use a collection

agency

Making Cash Flow®

Page 9: Making Cash Flow For Your Business

Challenges & Costs: Internal Follow-Up

Making Cash Flow®

• “The faster you mail an invoice, the faster you will be paid. If your service does not automatically trigger an invoice and statements, establish a set billing schedule, preferably weekly ” - The Journal of Accountancy

• “Most businesses have their accounts receivable in shambles because they cannot manage their sales and billing on a daily basis.” – SmallBusinessZone.com

• “It costs businesses approximately $31.60 to recover a past due account.” – Dartnell’s Institute of Business

• “53% of surveyed small business owners said they are experiencing cash flow problems.” – Discover Small Business Watch

Page 10: Making Cash Flow For Your Business

Optimize Your A/R Process

Most businesses have a two step approach to collections:

Challenges with a Traditional, Two Step Approach:• Debtors know they owe, but don’t care• Debtors are less likely to respond as attempts continue• No cap on time or money spent on follow-up• Businesses spend too much time chasing accounts internally due

to high cost of agencies and fear of alienating customers• Takes too long to establish the casual delinquency vs. intentional

delinquency

In-House Efforts

Collections

Making Cash Flow®

Day 180 (approx)

Intensive telephone contact and/or legal action at a cost of 25-50% of recovered amounts.

Day 30 Day 60 Day 90 Day 120 Day 150Statement ($1.10)

Statement ($1.10)

Statement, ($1.10) Letter #1, ($1.10)

Phone Calls ($2.96)

Statement, ($1.10) Letter #2, ($1.10)

Phone Calls ($2.96)

Statement, ($1.10) Letter #3, ($1.10)

Phone Calls ($2.96)

Page 11: Making Cash Flow For Your Business

Our 4 Stage Optimized Approach

Making Cash Flow®

Page 12: Making Cash Flow For Your Business

We Create a Sense of Urgency

Making Cash Flow®

Page 13: Making Cash Flow For Your Business

Our 4 Stage Optimized Approach

Making Cash Flow®

Your Initial Invoice

Collections

Page 14: Making Cash Flow For Your Business

Placing Accounts is Easy

Making Cash Flow®

It’s easy to submit accounts to us:

• Log on to our secure Online Client Portal (OCP) and submit accounts for any or our services, 24/7

• Upload accounts one by one or in a batch upload format

• View accounts, stop accounts, report payments and pull performance reports all from one easy to use portal

• You remain in complete control

Page 15: Making Cash Flow For Your Business

Existing Interfaces

Making Cash Flow®

Page 16: Making Cash Flow For Your Business

GreenFlag Accelerator

• A cost effective, diplomatic and systematic service that resolves past due accounts

• A way to contact your customer or patients easily and quickly about their statement with little effort

• We make the contacts every 5-7 days in your name with the goal of getting you paid faster and improving your cash flow

Making Cash Flow®

Page 17: Making Cash Flow For Your Business

Mixed Media Create Urgency

Contact 1:Diplomatic Reminder

Letter

Contact 2:Diplomatic Reminder

Call

Automated Reminder Call #1:

Hello. This is not a telemarketing call. This is <TSI Client Name> calling regarding your account and a letter we recently sent you on <Date>. This message is for <Debtor Name>. Please contact us at your earliest convenience at <Phone> and reference your account number <Account>. Again, that’s <TSI Client Name> at <Phone>. Thank you for your immediate attention to this matter.

Making Cash Flow®

Page 18: Making Cash Flow For Your Business

Technology Makes a Difference

Contact 3:Diplomatic Reminder

Letter

Contact 4:Diplomatic Reminder

Call

Automated Reminder Call #2:

Hello. This is not a telemarketing call. This is <TSI Client Name> calling for the second time regarding your account and a letter we recently sent you on <Date>. This message is for <Debtor Name>. Please contact us at your earliest convenience at <Phone> and reference your account number <Account>. Again, that’s <TSI Client Name> at <Phone>. Thank you for your immediate attention to this matter

Making Cash Flow®

Page 19: Making Cash Flow For Your Business

Contact 5:Final

WarningLetter

Making Cash Flow®

Page 20: Making Cash Flow For Your Business

You Will be Informed of Progress

Making Cash Flow®

Page 21: Making Cash Flow For Your Business

1/10/11 Confidential

Opinions from Clients

Making Cash Flow®

• “The beauty of this service is that all demands for payment look and sound as if they are actually coming from us. Transworld is not acting as a collection agency with the GreenFlag Accelerator service. They are enhancing our in-house efforts and the money that is collected.” – BMA Tax Service

• “Transworld Systems has saved us time and money on chasing past due customers who are not yet seriously delinquent and has given my staff the time to do all the other things they have to do on a daily basis.” – Mail Services of Houston

• “GreenFlag Accelerator takes the place of our business office having to make time-consuming phone calls, and send costly collection letters. We send one bill to our patient, and at 30 days transfer it to Transworld and they do all the work for us.” – Delta/ Medix

Page 22: Making Cash Flow For Your Business

GreenFlag Profit Recovery

For accounts that aren’t collected in GreenFlag Accelerator, our GreenFlag Profit Recovery service includes:

• Early collections intervention from a third party at a controlled cost

• Series of demands from Transworld Systems with increasing intensity in each demand

• Instructs party to pay you directly• You choose the approach – diplomatic or firm• You stay in control through the entire process• Local third party impact from one of our 100 offices

Making Cash Flow®

Page 23: Making Cash Flow For Your Business

40 Years of Proven Success

Making Cash Flow®

Demand 1 – Diplomatic, Intensive orBad Check

Options

Page 24: Making Cash Flow For Your Business

Making Cash Flow®

ThankYou

Letter

Optional Thank You

Letter

Page 25: Making Cash Flow For Your Business

Making Cash Flow®

Demand2

Or Choose A Call

Automated Call:Hello. This is an important message from Transworld Systems, a debt collection

company. This is an attempt to collect a debt and any information

obtained will be used for that purpose.

We are calling in reference to a letter we sent you on <Date> regarding our client <TSI Client Name>. Please return the call to <TSI Client Name> at <Phone>. Again, that’s <TSI Client Name> at <Phone>. When calling please refer to your id code <Account>.

Transworld Systems is a debt collection company and any information obtained will be used for that purpose. Thank you.

Page 26: Making Cash Flow For Your Business

Making Cash Flow®

Demand3

Driving Urgency

Page 27: Making Cash Flow For Your Business

Making Cash Flow®

Demand4

Or Choose A Call

Automated Call:Hello. This is an important message from Transworld Systems, a debt collection

company. This is an attempt to collect a debt and any information

obtained will be used for that purpose.

We are calling in reference to a letter we sent you on <Date> regarding our client <TSI Client Name>. Please return the call to <TSI Client Name> at <Phone>. Again, that’s <TSI Client Name> at <Phone>. When calling please refer to your id code <Account>.

Transworld Systems is a debt collection company and any information obtained will be used for that purpose. Thank you.

Page 28: Making Cash Flow For Your Business

Making Cash Flow®

Demand5

40 Years of Proven Success

Page 29: Making Cash Flow For Your Business

We Keep You Informed

Making Cash Flow®

Page 30: Making Cash Flow For Your Business

Maximizing ROI

Making Cash Flow®

If your current agency chargesYour agency would

keepYour practice

would get Your ROI would be

25% $25 $75 $3 to 1

33% $33 $67 $2 to 1

50% $50 $50 $1 to 1

The GreenFlag Profit Recovery Program allows you to keep more of your hard earned profits. Let’s compare Transworld's results with a conventional agency…

Upon collecting a $100 balance…

The return on investment illustrated above can never change, even if the agency collects every penny you turn over to them!

Page 31: Making Cash Flow For Your Business

Medical ROI

Making Cash Flow®

ClientAverage balance

Recovery rate ROI

Internal Medicine Associates $111 40.4 4.67Eliz. Wende Breast Clinic $127 45.3 6.55Endwell Family Physicians $116 68.1 10.39Hamilton Orthopedic $305 25.7 8.02Buffalo Medical Group $117 38.5 6.76Family Medicine Associates $164 56.1 10.50Marc Safran, MD $142 41.9 5.55Family Practice Associates $177 33.4 6.77Pediatric Associates $248 45.1 11.43Sports Physical Therapy of NY $271 33.1 9.47St. Camillus Health & Rehab $1,055 48.6 50.56Arthritis Health Associates $144 41.6 5.65

With Transworld Systems you pay a fixed flat rate with a GUARANTEED minimum ROI of 2:1; however most clients see 6:1 or better. Here are the results of just a few of our medical clients:

You may be “happy with your % agency”, but isn’t it time to think about putting more profit back into your practice? Simply put, GreenFlag Profit Recovery is the most logical “First Step” in recovery of delinquent accounts.

Page 32: Making Cash Flow For Your Business

Maximizing ROI

Building Revenue, Preserving Relationships

With Transworld Systems you pay a fixed flat rate with a GUARANTEED minimum ROI of 2:1; however most clients see 6:1 or better. Here are the results of just a few of our clients:

You may be “happy with your % agency”, but isn’t it time to think about putting more profit back into your practice? Simply put, GreenFlag Profit Recovery is the most logical “First Step” in recovery of delinquent accounts.

ClientAverage Balance Recovery Rate ROI

Ace Hydraulic & Pneumatic 866.08 86.8 63.00Alliance Bank 441.90 31.9 17.59Charles Heating & Air 981.40 49.0 36.83Danlee Medical Products 500.46 67.9 34.27Doyle Security Systems 580.97 27.4 13.19Houghton 1705.55 30.6 44.81Kelly Wholesale Nurseries 1925.65 62.1 91.12Liverpool Pool & Spa 634.30 44.1 31.04OCWA 123.39 54.3 6.47Oil Burner Supply 871.86 67.7 25.22Overhead Door Company 397.04 54.5 20.07Pete’s Tire Service 748.91 58.6 33.09Stanley Steemer 1057.27 66.4 56.33Syracuse New Times 568.40 49.3 18.79Syracuse Pool & Patio 1027.24 76.7 67.66The Evening Sun 504.49 71.3 29.17The Palladium Times 498.75 56.9 26.80

Average Results… $696.35 56.2% 36.20

Page 33: Making Cash Flow For Your Business

Transworld Collections

For the few high risk accounts that go un-collected:• We have a nationwide team of collection experts who

will turn up the heat on these overdue accounts• The Transworld Systems Collections service is

contingency based• You pay only for what is recovered on these high-risk

accounts, no collection, no charge!• You can submit the accounts and pull reporting

directly from the Online Client Portal• Legal options where warranted

Making Cash Flow®

Collections