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Web Pres 02 13 081


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Profit Recovery_How and Why it works

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Web Pres 02 13 081

  1. 1. T.S.I. Accounts Receivable Specialist Prospective Client Quick Overview The tools to help you MIND YOUR OWN BUSINESS
  2. 2. Conventional 2 Phase Approach to Collections The traditional collection process is expensive internally and externally. Phase I: IN-HOUSE COLLECTION FOR 6 MONTHS Past Due Past Due Past Due Past Due Past Due 30 Days 60 Days 90 Days 120 Days 150 Days 2nd Statement 3rd Statement 4th Statement 5th Statement 6th Statement 1st Letter 2nd Letter 3rd Letter 4th Letter 1 Phone Call st 2 Phone Call nd rd 3 Phone Call $1.10 $1.10 $1.10 $1.10 $1.10 In-house cost $1.10 $1.10 $1.10 $1.10 $20 to $30 $2.96 $2.96 $2.96 Dartnell Institute of Business Research Phase II: PERCENTAGE AGENCY/ATTORNEY Average Rate of Recovery = 10% to 20% ? Average Fees = 30% to 50% of your money. True Cost of Collections = a loss of 90% or more of your company’s revenue!
  3. 3. 3 Phase Approach to Collections The Greenflag Profit Recovery service is simply a middle step (at a controlled cost) between your internal efforts and traditional agency representation. It provides your company with 3 clear benefits: Phase I: In House Phase II: Greenflag by Transworld Systems, Inc. Optimize in-house procedures Day 0 to 60 Day 60 Day 70 Day 80 Day 90 Day 100 TSI Courtesy 2nd TSI 3rd TSI 4th TSI TSI 5th and Statement $1.10 Notice Contact Contact Contact Final Contact Letter $1.10 Phone Call $2.96 36% to 76% Recovery Rate TSI offers you the opportunity to use a diplomatic 3rd party to recover your profit while maintaining sensitive client relationships! 1. Improved cash flow 80% to 95% Collected 2. Reduced expenses 3. Identify intent Identify intent Phase III: Verbal Demands and/or Legal Action/(CMS)
  4. 4. Transworld Systems Inc. • We’re in the business of profit recovery. We lead the industry in providing businesses with better tools for recovering bad debt and accounts receivables. We’ve been proving it to our customers, including more than 200 Fortune 500 companies, since 1970. Let us prove it to you. • Last year, we recovered $700 Million for an average of $10.00 per account.* • Our success rate is more than triple that of the industry average.** • Providing local impact with over 120 offices coast to coast. • *Company average. **Based on ACA statistics.
  5. 5. What the Experts Say – “Transworld gets credit for the highest recovery rate in the industry.” » Barron’s – “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 – “Its low fee structure encourages clients to assign accounts early, usually 45-90 days past due. Their recovery is more than 2 ½ times better than the competition. » Investor’s Daily – “In addition to the superior collection rate and speed of recovery, Transworld’s low fee provide the client with a 30%-70% savings.” » FORBES Magazine – “…Transworld has a long term proven record of being able to deliver twice the normal recovery rate at a fraction of the normal cost.” Shearson Lehman
  6. 6. Some of Transworld’s 60,000 Clients
  7. 7. What Our Clients Have in Common • They extend credit and/or accept checks. • They mostly have an individual or an entire department devoted to collecting past due accounts internally. • They all use GreenFlag Early Profit Recovery services to minimize bad debt losses. “As a national direct marketer we faced some very unique challenges in the area of collections. TSI not only helped us meet these challenges, but help us exceed our goals in a very cost effective manner.” Tom Miglino Vice President American Mint
  8. 8. What We Do For You • For an average of less than $10.00 per account, we provide the impact of third party intervention. • Minimize internal efforts, improving overall department performance. • Preserve your valued customer relationships. • Minimize the risk of accidental violations of state and federal collection laws and/or harassment suits through the use of a hold harmless agreement. • Allow 24/7 access to account information via OCP website as well as complete monthly reporting on all accounts. “As important as collecting arrearages is, even more important is retaining customers. This is where your company has really shined. Our re-activation of collected accounts has leapt a full 14%! This difference has really set your company apart from those we’ve used in the past” Margaret Lewis – DBS Coordinator – DirecTV
  9. 9. 120 offices nationwide, including Canada now too! (Not shown)
  10. 10. Start Early – Recover More We all know that the older an account gets, the harder it becomes to collect. But did you know that at 60–90 days past due accounts begin to depreciate at the accelerated rate of ½% per day? At 180 days past due, consumer accounts have depreciated to the point where only 30% on average will ever be recovered. 100% 95% 90% 80% 74% Critical Depreciation 70% Period 60% 1/2% per day 50% 40% 30% 30% 20% 10% 10% 0% 45 90 A G E O F A C C O U N T S IN DAYS 0 30 60 90 120 150 180 210 240 270 300 330 365 Transworld Conventional Systems Agency Source: (U.S. Department of Commerce study on depreciation of accounts held in-house)
  11. 11. National Statistics Prove It According to the American Collectors TSI Collected 56% Association, Inc., the average collection (company average) agency collects less than 14% of all debts assigned at an average cost of 33% per dollar collected. Average Our clients experience a 56% recovery Agency rate at a cost of approximately 7 cents per Collection dollar collected. Average Agency Cost 14% 33% (ACA Average) (ACA Average) ( Our clients receive over 3 times the recovery at about 1/5th the cost) TSI Cost: 7¢ per dollar collected (company average)
  12. 12. Convenience Counts •GreenFlag offers you two ways to transmit and manage your accounts: – Interactive Web Site (recommended) Upload and manage your accounts 24/7 via our secure interactive web-based Onyx Customer Portal (OCP) – Paper submission of accounts also available – For a demo of our TSI web site and to see service videos: WWW.COLLECTIONS4LESS.COM Contact us: (818) 710-0244
  13. 13. Getting Better Results • We recover more because we start earlier. – We recover more than traditional agencies because: • We work ALL of the accounts the same way, regardless of the size or the balance. • Most percentage-based agencies work only the accounts with higher balances that are the most cost effective for them, leaving the smaller balances uncollected. • Our fixed fee, diplomatic service allows you to have us get started early in the process with the increased impact of third party intervention. “…studies by the American Collectors Association show that 80% of all the monies collected by agencies are collected as a result of letters.” » American Collectors Association, Inc.
  14. 14. You have 3 choices over the content of our 1st contact… Diplomatic, Intensive, or NSF Check
  15. 15. 5 Contacts in 40 days Optional “Thank You” Letter sent whenever your customer pays
  16. 16. • What our clients say… “I’d recommend Transworld Systems to any business large or small that’s fed up with slow paying or delinquent customers and would like to get paid sooner without worrying about losing future business” » SYSCO Food Services • “Boy, was I surprised! Not only have you gotten our accounts paid faster than we used to by ourselves, but by you letting our clients know in a nice way that we need our money you’ve reduced the strain that had been building up in the relationships. Better still, once they understand our situation, they start paying on time regularly. » American Linen • “We’ve been using your service for the last seven years and have recently renewed for the fourth time. We had tried several other collection agencies prior to TSI, but we have stayed with you because you have produced results far superior to any other agency we ever used. TSI’s nationwide coverage affords us the opportunity to pursue accounts across the country for an amount that is much less than it would cost us, making TSI very cost effective.” » AAA Motor Club • “We have been using TSI at this location for three years now and the results have been nothing less than outstanding - 69%!! The demands for payment are diplomatic and yet very effective. It’s easy to see why Marriott Hotels chose to use Transworld Systems nationwide. You have our recommendation for any business looking to simplify collection procedures” » Marriott Hotels • “Many of our balances are small so we needed a service that would work for all of our balances not just the big ones. TSI has really come through. Collection success rate is great, cost is reasonable and best of all, my time is freed up to concentrate on my business and paying customers.” » Jennie Craig Weight Loss Centers
  17. 17. Verbal Demands • When intensive recovery efforts are required • GreenFlag Verbal Demands employs a team of highly trained recovery specialists operating from nationwide call centers. – Verbal Demands Phase: • Turns up the heat on overdue accounts • You pay only for what is recovered • Offers legal recourse for tough cases • Handles the types of accounts other agencies ignore as un-collectable.
  18. 18. Legal Options • Making the difference in the toughest cases: • GreenFlag Legal Options can make a difference where court action is warranted, and there are assets that can be recovered. – Legal Options Phase: • Cause suit to be filed • Pay all court costs • Pay attorney fees, service or process fees • Pay any other fees necessary to satisfy a judgement • An attorney will appear in court on your behalf. – Most Importantly: • If no money or assets are collected, there is no charge.
  19. 19. Company Facts Revenue: $650.0 million FY 2006 Associates: 9,000+ Outsourcing Solutions Inc (OSI) – Headquartered in St. Louis, Missouri • More than 70 offices across 25 states, plus Canada, Mexico and Puerto Rico, as well as associates based at on-site client locations. • Founded: 1995 Transworld Systems Inc. (a subsidiary of OSI) Headquartered in Rohnert Park, California • More than 130 offices throughout United States and Puerto Rico • Founded: 1970 Woodland Hills office (818) 710-0244 First-party receivables management services and letter series are primarily performed by Transworld Systems Inc.
  20. 20. A final word… See for yourself why 60,000 businesses choose TSI over extended in- house efforts and all other 3rd party alternatives combined •We recover three times the industry average for about one sixth the cost. •Flat-fee, no percentages – regardless of the balance. Average cost of only 7 cents per dollar collected. •Diplomatic approach – we recover your profits without offending your valued customers. •You stay in control – you decide how diplomatic to be and when to turn up the heat. •Recovered profit is paid directly to you. No more waiting 30-60 days for an agency to pay you your money. •Over 130 Offices Nationwide – provides unparalleled local For reference letters of client results impact. go see “testimonials” at •Performance is guaranteed – Use TSI at no financial risk whatsoever. •Other services include bad check recovery, check Call us at (818) 710-0244 for more info guarantee and medical insurance claim resolution.