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Green Flag Cash Flow Management presentation

Green Flag Cash Flow Management presentation

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  • 1. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 ACCOUNTS MANAGEMENT SOLUTIONS FOR YOUR BUSINESS
  • 2. Transworld Systems Inc. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Company Overview
    • In business since 1970
    • 60,000+ clients
    • Over 100 Offices Nationwide
    • Recovered $2.4 billion in the last 5 years for companies across all industries including Fortune 500 & 100 Companies
    • Success rate of more than 4 times that of the industry average*
    • 24/7 Online account management
    • *Based on ACA Statistics
  • 3. What the Experts Say ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 “ The numbers speak for themselves – recovery of over $230 million dollars with a 53% recovery rate and an ROI of almost 4,000% with a collection cost of 2.5%.” Steve Hellebush, VP of Business Development, Medical Group Management Association “ The company has a collection rate of well over 50%. The typical collection firm gets only 20% and keeps 25% to 50% of recovered funds.” Fortune Magazine “ Transworld gets credit for the highest recovery rate in the industry.” Barron’s
  • 4. Conventional Two Stage Approach ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Most practices use a conventional, two stage approach: In-House Efforts Percentage Collection Agency According to the Dartnell Institute of Business Research, the average cost to work an account over a six month period is $31.60 Day 30 Day 60 Day 90 Day 120 Day 150 Statement Statement Statement, Letter #1, Phone Calls Statement, Letter #2, Phone Calls Statement, Letter #3, Phone Calls Day 180 Intensive telephone contact and/or legal action at a cost of 25-50% of recovered amounts.
  • 5. GreenFlag Three Stage Approach ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Transworld Systems In-House Efforts Conventional Collection Methods
  • 6. GreenFlag Profit Recovery’s Three Stage Approach ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Fixed fee of typically less than $10 per account. You control the process. Limit internal efforts to less than $10 per account We contact the slow paying accounts every 10-14 days, at the your direction. Making up to 5 contacts, each progressively stronger – Phase I Collections. Optimize In-House Efforts In-House Use of Third Party (GreenFlag) Conventional Collection Methods Current 30 Days 60 Days Statement Statement Phone Call Statement Phone Call 90 Days 104 Days 118 Days 132 Days 146 Days 180 Days Verbal Demands – Phase II Collections 50% Contingency
  • 7. Start Early – Recover More ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 Fact: Companies wait to take action because they don’t want to pay a percentage and they don’t want to alienate their customer/client. Fact: GreenFlag is designed to take action early and diplomatically, recovering earlier and maintaining valuable customer relationships. According to the U.S. Department of Commerce, the older an account, the harder it is to collect.
  • 8. Start Early – Recover More ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 National Statistics Prove it
    • The American Collectors Association reports an industry recovery rate average of 15% and a collection cost averaging 30%.
    • Transworld Systems’ clients experience a recovery rate averaging 46.8% at a collection cost of 2.7%.
  • 9. Convenient Online Access ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • Submit accounts online 24/7 via
    • our secure Online Client Portal (OCP)
    • You control when to start, stop,
    • or suspend accounts
    • Complete reporting on all accounts
    • Upload spreadsheets with account
    • information and submit large groups
    • of accounts instantly
    • Easy to learn, helpful tutorials, and
    • superior online support
  • 10. The Demands: First Party Letter ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • Client return address:
    • Matches your remittance address
    • First Party Letter:
    • (Option)
    • Intensive Final Notice
    • Remittance Voucher
    • Money goes directly to you (envelope included)
    • First Party Letter
    • “… appears to be from our clients office. Final notice or be placed in collection.”
  • 11. The Demands: Third Party Letter ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • Local Impact:
    • Matches zip code of debtor to the nearest TSI regional office
    • You Choose:
    • 2 nd Demand (would follow 1 st party letter)
    • 1 st Demand
    • Remittance Voucher
    • Money comes directly to you (envelope included)
    • Third Party Intervention
    • “… from a collection agency”
  • 12. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 They may get upset ! Because they were turned over to a collection agency, they may call because they are upset. At this point you may read the telephone script we provide you. WE are the bad guys, not YOU ! Which is more effective, you calling your customer or your customer calling you? Report partial payments if necessary and we will follow up with them for the remaining balance due.
  • 13. The Demands: Why Do They Work So Well? ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • Return address is from one of our 100 offices nationwide
    • Increasingly more intense, alternating between credit card statement size and full letter size
    • Sent every 14 days, systematically unless client stops service
    • Strategic language = psychological impact
    • Demands sent in varying sizes, and different envelopes
    • Optional, diplomatic thank you letter helps you retain your valued client/customer
  • 14. Thank You Letter ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 At your request, we’ll send a thank you letter to your client/customer, at no additional cost! This will help your practice retain valuable customer relationships.
  • 15. The Power of Third Party Intervention ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • The debtor knows you are serious about getting your money.
    • The debtor is concerned his debt will affect his ability to get credit.
    • The debtor knows the efforts to collect will continue until he pays.
    Why is contact from an outside party more effective than in-house efforts?
  • 16. The GreenFlag Advantage ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • Standardizes the A/R process for slow paying accounts
      • Our service guarantees these accounts are contacted every 10-14 days
    • Identify and evaluate existing A/R
      • Effective tool for clean-up
      • Completed within 90 days
    • Gives the business the advantage of using a third party, diplomatic approach earlier in the process
    • Preserves client/customer/debtor relationships
    • Reduces internal collection costs and staff overload
  • 17. Why it Works ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • We provide the impact of third party for an average of less than $10* per account while minimizing internal efforts
    • Preserve your valued customer relationships.
    • Complete monthly reporting on all accounts.
    • Interactive, secure Online Client Portal (OCP)
    • that allows you to submit accounts instantly.
    • Return address is from closest debtor office
    • which is zip code activated. Local impact!
    • Size changes from mailgram to letter every 10 days.
    • Return payment envelope & tear off voucher 1 st , 3 rd and 5 th demands – The only thing we don’t do is lick the stamp!
    • FDCPA Disclaimer at bottom of 1 st Demand
    • *Company Average
  • 18. GreenFlag vs. Contingency Agency ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
      • Assumptions:
      • Accounts Submitted: 5,000 accounts
      • Average Balance: $350
      • $ Outstanding: $1,750,000
    Greenflag Profit Recovery Other Agency Est. Recovery Rate: 25% 14% Est. $ Recovered: $437,500 $245,000 Collection Cost: $7.99/acct 35% Total Cost: $39,950 $85,750 Net $ Recovered: $397,550 $159,250 Difference: +$238,300 Secondary Recoveries * : +$98,437.50 Additional profit using GreenFlag Profit Recovery by Transworld Systems, instead of a contingency collection agency alone = $238,300+$98,437.50(secondary)=$336,737.50 *Secondary recoveries for accounts not recovered by TSI forwarding to the contingency agency estimating 15% recovery rate at 50% cost.
  • 19. The Power Beyond GreenFlag ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022
    • You decide the next step: Option=Verbal Demands Collection - Phase II
    • Seamless flow from in-house efforts to a contingency agency
    • Your practice benefits from a professional team of well-trained collectors using industry-leading technology from telephone centers throughout the country.
    • You can move to legal action and we pay all attorney and court fees.
    What happens if debtors don’t pay after the demands?
  • 20. System Size Worksheet ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 At what point would you like to use our service? (i.e., 60, 90 days) ___ ___ __days How many accounts will reach that point every month? ____ _____ Our PROFIT RECOVERY service is good up to 24 months x 24 months Total: _____ ___ Accounts to be referred now: ________ Total number of accounts referred: _________ Total # Accounts __________x Avg. Bal. $ ________ = Total $ Referred ____________ Total $ Referred ________________x_______ (Recovery Rate %) = $ _____________ ________ (Total # Accounts) x $ ________ (Unit Cost) = $_________ (Total Investment) Investment $________ ÷ Avg. Bal. $_________ = ______ (# Accounts to get back investment) ++++++Secondary recoveries!!!!
  • 21. ® 2009 Transworld Systems Inc. (Rev 5/09) All rights reserved. The Transworld Systems and GreenFlag logos are registered service marks of Transworld Systems Inc. NYC License No. 1155022 ACCOUNTS SOLUTIONS FOR YOUR BUSINESS MANAGEMENT