This document discusses the importance of managing accounts receivable and collecting on overdue payments from customers. It outlines four simple rules for dealing with customers, including that allowing slow payments will encourage continued delays. The document then describes the costs of carrying unpaid receivables, both in terms of cash flow and lost opportunities. It positions Brennan & Clark as a firm that can help manage receivables and collections through various services like automated letters, phone follow-ups, online tracking, and consulting. The value of improving collections is said to be significant for companies.

1. Brennan & Clark,
LTD.
Accounts
Receivable
Department

2. First, three simple rules:
1. Customers fight hard for terms.
2. When a customer pays within terms,
you’re a vendor. Out of terms, you’re
a lender - usually at no interest.
3. If you allow a customer to get comfortable
being a slow pay, he’s got no reason to
speed up the process.

3. Days Sales Outstanding (DSO) or receivables turnover
No matter how you measure it, every day you carry a
receivable, it costs you money.
It’s not just that it chokes your company’s cash flow.
And it’s not just the cost of capital.
The biggest problem is that it deprives your
company of the ability to invest those dollars
in areas that provide a real return.

4. Because there’s a fourth in the list
of simple rules:
4. A dollar can’t be in two places at once. If it’s
busy carrying a receivable, it can’t also be
buying more inventory, or executing a new
marketing program, or hiring another
salesperson, or acquiring a competitor, etc.

5. It’s your job to free up your company’s
capital to invest in high value/high return
projects.
And it’s our job to help !

6. Let us present our qualifications
* We’ve been providing professional collection
services since 1980
* We are among the 2% of agencies certified
by the Commercial Law League of America
* We are a team of experienced negotiators
dedicated to helping you convert your slow
turning receivables into cash

7. Most companies in our business offer
this basic menu of services:
Free demand letter
Contingency collections
Outsourcing phone or letter follow-ups
3rd party letter-writing service
Legal Services

8. We do all those things…
and more!

9. Automated Letter/Fax System
We will develop and send
customized correspondence
to non-responsive past due
accounts.
And you pay a fee ONLY if recovery is
made.

10. Outsourcing of phone and letter follow-ups
Most agencies will serve as your phone and letter-writing
follow-up service on a fee basis.
We do that, too. But we also do it on a
contingency basis. If you don’t collect from them,
we don’t collect from you.

11. CASH NOW!
This option eliminates your risk entirely. Your results
are guaranteed and your administrative costs are
eliminated.
You will receive cash for any account placed within 5
days of placement.

12. 24/7 online access
So, if someone drops by your office
and asks about the status of a delinquent
account, the information is at your
fingertips.
Once you turn an account over to us, you have
immediate online access to track our progress.

13. And we offer a full range of consulting services,
from developing and refining your receivables
management system to training your staff.
And we offer a full range of consulting
services, from developing and refining
your receivables management system to
training your staff.

14. Now What?
Evaluate
Decide
Act

15. Evaluate
• Float – They benefit from the time value of
money at your expense.
• Cash flow – They can’t pay you until they get
paid
• Financial difficulties – they only pay those
suppliers they can’t live without.
• Because you let them. Remember rule #3! If
you allow a customer to get comfortable being a
slow pay, he’s got no reason to speed up the
process.
Try to understand why your customers delay payment.

16. Decide
Do you want to do business on your terms
– or are you willing to accept theirs?

17. Act
Brennan & Clark will work with you
to identify the steps that need to be
taken, help you refine your
procedures, train your staff, and
implement a receivables
management system that will
improve your bottom line.

18. What does it really mean
in dollars and cents?

19. How Much Is That $100 Receivable Really
Worth?
$77.14$22.8625.4%$90.00$10.00At 1 year
$60.17$39.8341.9%$95.07$ 4.93At 180
days
$44.87$55.1357.0%$96.71$ 3.29At 120
days
$28.90$71.1072.9%$97.53$ 2.47At 90 days
$16.79$83.2184.6%$98.36$ 1.64At 60 days
$ 7.75$92.2593.4%$98.77$ 1.23At 45 days
$ 2.90$97.1097.9%$99.18$ 0.82At 30 days
$ LostValue
Probability
Of
collectingValue
Carry cost
@10%/year
Days
Past Due
When a receivable is 90 days past due, it has lost nearly 30%
of its value.
At 180 days, that receivable has lost about 60%.

20. The value of improving
your collections is
staggering.
And we can help.

21. By the way, there’s a fifth
rule…
If your customer doesn’t pay you…
Nothing else matters!

22. 800-868-7600800-868-7600
info@brennanclark.cominfo@brennanclark.com
OurOur mission is to rise Beyond Collections by providingmission is to rise Beyond Collections by providing
customized receivable support solutions that eliminatecustomized receivable support solutions that eliminate
credit losses.credit losses.