What is the true cost of debt to
         you business?
• If your company were to
  write-off      a      $1,000
  debt, how much new
  revenue would you have to
  generate to ma...
Traditional Thinking        Superior Thinking


• $1,000 bad debt = $1,000   • $1,000 bad debt = 100%
  new revenue or one...
The debit cycle
– $1,000 gross revenue
– GST = $110
– $890 net profit
– Operating expense 70% = $623
– $267 gross profit
–...
• Gross revenue
                    $1,000*12.5= $12,500
                    to equal $1,000 net
• 12.5 times        profi...
• $500 debt = $6,250
• $5,000 debt = $62,500
• $20,000 debt = $250,000
Focus on the debt
   opportunity
Retainer Vs Set-up fees
  Rocky Mountain Collections     Other collection agencies set-up
          Retainer              ...
Get started to collect the bad debt
              now!!!
• Contact Rocky Mountain Collections @
              801.558.2016
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Value Of Bad Debt

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Value Of Bad Debt

  1. 1. What is the true cost of debt to you business?
  2. 2. • If your company were to write-off a $1,000 debt, how much new revenue would you have to generate to make up for this written-off debt?
  3. 3. Traditional Thinking Superior Thinking • $1,000 bad debt = $1,000 • $1,000 bad debt = 100% new revenue or one new pure profit. $1,000 contract.
  4. 4. The debit cycle – $1,000 gross revenue – GST = $110 – $890 net profit – Operating expense 70% = $623 – $267 gross profit – Profit Margin@ 30% = $187 $80 net profit
  5. 5. • Gross revenue $1,000*12.5= $12,500 to equal $1,000 net • 12.5 times profit • The first contract brings the reduction your company even, the second $12,500 contract brings your company in the black
  6. 6. • $500 debt = $6,250 • $5,000 debt = $62,500 • $20,000 debt = $250,000
  7. 7. Focus on the debt opportunity
  8. 8. Retainer Vs Set-up fees Rocky Mountain Collections Other collection agencies set-up Retainer fees • $1,000 • $1,000 to $4,500 • Will be paid back during the • Will never be paid back collection process • Spending “good money • Not spending “good money after bad” after bad” • Industry average returns of • Higher collection returns 11-17% – 63% • Client retention average of • Higher client retention 25% – 75-80%
  9. 9. Get started to collect the bad debt now!!! • Contact Rocky Mountain Collections @ 801.558.2016

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