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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

“ 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!

It’s expensive to do

Customers often don’t pay on time

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

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

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!!”

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?

The Traditional Billing Process Customer’s Bank Business Invoice is Sent Payment is Returned Customer Business’ Bank

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

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.

Used for years by. . .

Mortgage Companies

Insurance Companies

Health Clubs

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

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

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

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!

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

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

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

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

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

How Much Money Can You Save? Tanning Salons – 500 Customers Save $1,335 per month for each location Child Care - 1,500 Customers Save $4,005 per month Condo Association - 250 Units Save $668 per month What About You??? Examples (assuming $1.50 fee per check)

Tanning Salons – 500 Customers

Save $1,335 per month for each location

Child Care - 1,500 Customers

Save $4,005 per month

Condo Association - 250 Units

Save $668 per month

What About You???

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

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 ?

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

Want only large accounts

No local service

Too expensive for small merchants

Limited services

Customer 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

“ 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!

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

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

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

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 =

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

One page agreement

No long term commitment

We take care of your billing from the day you sign up

You’re done

Payment Automation Network, Inc. CALL (800) 813-3740 or visit www.PaymentAutomation.net