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Commercial Finance Group A/R Program for The Banker

Commercial Finance Group A/R Program for The Banker. Do you need to collect a client’s A/R ? Does your (otherwise) good client need Credit Management and A/R collection help? What do you do with a problem loan ? Do a “work out” ? Wait it out ? Liquidate the collateral?.

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Commercial Finance Group A/R Program for The Banker

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  1. Commercial Finance Group A/R Program for The Banker Do you need to collect a client’s A/R ? Does your (otherwise) good client need Credit Management and A/R collection help? What do you do with a problem loan ? Do a “work out” ? Wait it out ? Liquidate the collateral?

  2. You can “suggest” a service to your borrower that is faster, cheaper, and vastly superior to their present credit granting and A/R collection method (which would please you) and be sincerely valuable and appreciated by your client; …that can be implemented within minutes and be effective within hours after start-up, with almost no time money or effort expended by their staff; …while it secures control of your client’s A/R for you; …and still preserve the banks rights to take further action on the loan at a later date.

  3. Good For the Bank Restore “performing” status Reduce loss exposure Preserve collateral 3RD party A/R verification Establish control over A/R Preserve the bank’s choices of future collection actions The Advantages of CF’s Service Good For the Client Repay bank loan faster Improve cash flow Reduce overhead cost Reduce credit losses Control A/R & credit tasks Provide cash for growth Restore positive attitude CF is potential new lender

  4. CF Improves Quality of Client A/R • Our on-line system provides full A/R visibility to you 24/7/365 from any PC. • The data is in “real time”. • We provide Credit Management guidelines. • We check the credit of the client’s large debtors. • We identify risky debtors for C.O.D. terms. • We recommend appropriate O/S collection action. • Our collection calls serve as “3rd party” review.

  5. CF Reduces Client’s Expenses • Reduce payroll, taxes, fringe benefit, & facility cost by spending less on the “office” function. • Reduce credit checking & report costs. • Reduce bad debts with good credit advice. • Reduce interest on bank loan.

  6. CF helps: • Reduce credit “runaways”. • Eliminate the need to give prompt pay discounts on A/R. • Increase sales with better credit screening. • Reduce Management’s time spent on credit & collection issues.

  7. CF Does the A/R Service Tasks • Make collection calls to debtors. • Provide invoice copies as needed. • Post cash payments received. • Make bank deposits to any lock-box. • Do statements & send payment reminders to past due debtors. • Direct 3rd party collection activities.

  8. CF’s menu driven program makes you an instant expert.

  9. Need a dilution report? Need to track key figures or percentages? How about an aged customer statement? Need special information for an internal report? No Problem !! CF program does special reports

  10. Dilution Report (Sample)

  11. Logs all contacts with client’s debtors. Provides legal proof of collection efforts. Confirms Debtors knowledge of debt. Enables bank or client review of contacts. Enables analysis of debtor payment delay. Provides continuity of collection efforts. CF keeps a “collection notes” log

  12. CF suggests prudent credit limits

  13. CF Program Fees to Bank’s Clients A one-time set-up fee in the amount of $250.00. 2.00% for the first $1,000.000 (per annum) of net A/R charges, then: 1.75% from $1,000,001 to $5,000,000. 1.50% from $5,000,001 to $20,000,000. 1.25% from $20,000,001 to $30,000,000. 1.00% from $30,000,001 Fees are computed on a rolling 24 month period, based on the following: Electronic data submission. Add .125% for manual methods. All charge customers are included*. Add .250% for partial participation. Average invoice value of $500.+ Add .125% if average is less. Customers accounts =10K Per Yr. Add .125% if average is less. Early termination charges may apply. There are no other fees or charges. *Fee reductions may be elected for special customers requiring “no CF service”. Special rates apply to “work-outs” and accounts under $1,000,000 per annum. *Assumes 80% repeat customer base.

  14. CF Service Start-up Schedule • System installation requires only 5 minutes. • Our set-up team scans documents to capture data. • Collection work can begin the day data is acquired. • Clients need a 56K modem, or DSL connection on a PC running windows 98 or newer. Data is imported into our system from the client’s files in a delimited text file format. In the event no export function is provided we may furnish a custom program interface at little or no cost to the client.

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