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cash flow solutions www.medicalbillrecoverysolutions.com
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Cash Flow Solutions
For Business
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 & Invoicing Services
Other Cash Flow Services
Pre-Authorized Checking
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?
Regular monthly payments come in automatically
Customers that pay over a period of time pay regularly
You can save money by not sending out monthly bills or invoices
Why Do You Need Drafting?
Even if you don’t use drafting, your competition will
You can use the time and money spent on collections as profit
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 accountsNo local service Too expensive for small
merchantsLimited servicesCustomer service issues
Other Options: Institutional Banks
“Hidden” Fees 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
Software to buy or lease Complete Credit/Background Checks may be involved Processing options may be limited 5 Day Pre-delivery Prior to Processing 2 Week Pre-notification of Changes/Additions 10% to 20% Reserve At All Times YOU DO ALL the Work
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
Billing & Invoicing
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
Enrollment? Again … Simple
One page agreement
No long term commitment
We take care of your billing from the day you sign up
You’re done
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