mcit business ppt
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MCIT Revenue Cycle MCIT Revenue Cycle Specialists, LLC.Specialists, LLC.
“Strategies for revenue growth.”
Cash Flow Cash Flow Solutions Solutions
For For BusinessBusiness
Cash is the life Cash is the life blood of any blood of any
businessbusiness
““Four out of five small Four out of five small businesses fail in the first businesses fail in the first two years due to lack of two years due to lack of capital (cash flow).”capital (cash flow).”
Small Business AdministrationSmall Business Administration
The Problem:The Problem:Billing & Billing &
Collections Collections
It’s expensive to doIt’s expensive to do Customers often don’t pay on Customers often don’t pay on
timetime
…Both of Which Result in CASH FLOW
Problems!
The Need: The Need: Cash FlowCash Flow
Invoicing the Customer is Expensive :Invoicing the Customer is Expensive :
Average Cost: $4.17 per invoice for Average Cost: $4.17 per invoice for small businesses*small businesses*
Internet research shows the average Internet research shows the average cost to be $9.65 for all businessescost to be $9.65 for all businesses
Forms, EnvelopesForms, Envelopes PostagePostage Accounting LaborAccounting Labor Follow-up LaborFollow-up Labor Equipment/OverheadEquipment/Overhead Cost of Outstanding MoneyCost of Outstanding Money
* Source: 1998 Study by Harvard Business School
Innovative Innovative ServicesServices
Billing & Invoicing Services
Other Cash Flow Services
Pre-Authorized Checking
Pre-Authorized Checking
What would it be worth to you if What would it be worth to you if you could get payments from you could get payments from your customers on the same your customers on the same day of the month…every day of the month…every month…without ever sending month…without ever sending out an invoice?out an invoice?
Our Clients Say… “It’s Worth A Lot!!”
The Traditional The Traditional Billing ProcessBilling Process
Business’ BankBusiness’ Bank Customer’s BankCustomer’s Bank
BusinessBusiness
Invoice is SentInvoice is Sent
Payment is ReturnedPayment is Returned
CustomerCustomer
How Pre-Authorized How Pre-Authorized Checking WorksChecking Works
Your customer completes & Your customer completes & signs the pre-authorized signs the pre-authorized payment formpayment form
You forward the customer You forward the customer information to our processing information to our processing center via telephone, fax, US center via telephone, fax, US Mail or delivery serviceMail or delivery service
We enter your customer’s We enter your customer’s information into our system information into our system
We print a paper demand We print a paper demand draft (check) on the same draft (check) on the same day(s) each month and day(s) each month and deliver them to you for deliver them to you for depositdeposit
You’re Already You’re Already Familiar With This Familiar With This
ServiceService• Used for years by. . .Used for years by. . .
• Mortgage CompaniesMortgage Companies• Insurance CompaniesInsurance Companies• Health ClubsHealth Clubs
Now Pre-Authorized Checking Is Available To
Every Business…
Including Yours.
Other Businesses Other Businesses Using Our Services Using Our Services
Pager and Voice Mail Pager and Voice Mail ServicesServices
Self-storage RentalsSelf-storage Rentals Private SchoolsPrivate Schools Trash Pick-up CompaniesTrash Pick-up Companies Non-Profit OrganizationsNon-Profit Organizations Churches/SynagoguesChurches/Synagogues Answering ServicesAnswering Services Trade SchoolsTrade Schools NewspapersNewspapers Lawn ServicesLawn Services
Alumni AssociationsAlumni Associations ApartmentsApartments Bottled Water CompaniesBottled Water Companies Cable TV ServicesCable TV Services Day Care CentersDay Care Centers Pool ServicesPool Services Public Radio & TelevisionPublic Radio & Television Home Security CompaniesHome Security Companies Utility CompaniesUtility Companies … … and Many Moreand Many More
Why Do You Need Why Do You Need Drafting? Drafting?
Regular monthly payments Regular monthly payments
come in automaticallycome in automatically Customers that pay over a Customers that pay over a
period of time pay regularlyperiod of time pay regularly You can save money by not You can save money by not
sending out monthly bills or sending out monthly bills or
invoicesinvoices
Why Do You Need Why Do You Need Drafting? Drafting?
Even if you don’t use drafting, Even if you don’t use drafting,
your competition willyour competition will You can use the time and money You can use the time and money
spent on collections as profitspent on collections as profit You can offer your customers You can offer your customers
another payment optionanother payment option
How Much Does How Much Does It Cost?It Cost?
We charge a small fee per checkWe charge a small fee per check Fee ranges from $1.50 to $3.00 Fee ranges from $1.50 to $3.00
depending on:depending on: Number of customers participatingNumber of customers participating Anticipated length of relationshipAnticipated length of relationship
A small price to pay for the peace of mind you’ll get from having your customers’ payments IN
YOUR HAND!
Example: Example: Home Security Co.Home Security Co.
1,000 customers1,000 customers $30 average monthly fee$30 average monthly fee $30,000 monthly revenue$30,000 monthly revenue Send out invoices @ $4.17 eachSend out invoices @ $4.17 each 1,000 customers x $4.17 = $4,170 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
Example: Example: Home Security Co.Home Security Co.
1,000 customers1,000 customers Half participate in PAC (500 Customers)Half participate in PAC (500 Customers) 500 still cost $4.17 each = $2,070500 still cost $4.17 each = $2,070 500 now at $1.50 each = $750500 now at $1.50 each = $750 Total invoicing cost now just $2,820 per Total invoicing cost now just $2,820 per
month month A Savings Of $1,350 A Month…& Half Of All Money Is Collected Instantly!
Using Pre-Authorized Checking
How Much How Much Money Can You Money Can You
Save?Save?
Tanning Salons – 500 CustomersTanning Salons – 500 Customers Save $1,335 per month for each locationSave $1,335 per month for each location
Child Care - 1,500 CustomersChild Care - 1,500 Customers Save $4,005 per monthSave $4,005 per month
Condo Association - 250 UnitsCondo Association - 250 Units Save $668 per monthSave $668 per month
What About You???What About You???
Examples (assuming $1.50 fee per check)
How Much How Much Money Can You Money Can You
Save?Save?What Is It Worth To Have:What Is It Worth To Have:
Your customers’ payments in Your customers’ payments in your handyour hand
Ready to depositReady to deposit
On the first day of the monthOn the first day of the month
Every monthEvery month
The Bottom Line: Get The Bottom Line: Get Your Bill To The Your Bill To The TOPTOP of of
The PileThe Pile
When your customer is When your customer is deciding whether to pay deciding whether to pay
you or someone else, isn’t you or someone else, isn’t it nice to know that we it nice to know that we
get YOUR money get YOUR money automaticallyautomatically??
Your Options:Your Options:Large Payment Processing Large Payment Processing
CompaniesCompanies
Want only large accountsWant only large accounts No local service No local service Too expensive for small Too expensive for small
merchantsmerchants Limited servicesLimited services Customer service issuesCustomer service issues
Other Options: Other Options: Institutional BanksInstitutional Banks
““Hidden” FeesHidden” Fees Conversion fees, diskette processing fees, debit fees, Conversion fees, diskette processing fees, debit fees,
reversing fees, correcting fees, credit fees, origination fees, reversing fees, correcting fees, credit fees, origination fees, pre-note fees, addenda record fees, return item fees, pre-note fees, addenda record fees, return item fees, notification of change fees and monthly account minimum notification of change fees and monthly account minimum feesfees
Software to buy or leaseSoftware to buy or lease Complete Credit/Background Checks may be involvedComplete Credit/Background Checks may be involved Processing options may be limitedProcessing options may be limited 5 Day Pre-delivery Prior to Processing5 Day Pre-delivery Prior to Processing 2 Week Pre-notification of Changes/Additions2 Week Pre-notification of Changes/Additions 10% to 20% Reserve At All Times10% to 20% Reserve At All Times YOU DO YOU DO ALLALL the Work the Work
Initial Data Entry and Updates, Backups, Modem Transfers, Initial Data Entry and Updates, Backups, Modem Transfers, Follow-upsFollow-ups
Why Use Us?Why Use Us?It’s SimpleIt’s Simple
We do all the workWe do all the work Provide all paperwork & documentationProvide all paperwork & documentation No hidden feesNo hidden fees No credit checks on customersNo credit checks on customers No software to buy, learn, or maintainNo software to buy, learn, or maintain Changes are easy to makeChanges are easy to make WE GET YOUR MONEY…WE GET YOUR MONEY… YOU RUN YOUR BUSINESS!YOU RUN YOUR BUSINESS!
Enrollment Enrollment …Simple…Simple
One-page One-page agreementagreement
No long term No long term commitmentcommitment
We send notice to We send notice to your bankyour bank
You’re doneYou’re done
Billing & Invoicing
Professional Billing and Professional Billing and InvoicingInvoicing
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: Billing Services: Savings ExampleSavings Example
Same Home Security Co. With 1000 CustomersSame Home Security Co. With 1000 Customers
Only 500 are on Pre-Authorized CheckingOnly 500 are on Pre-Authorized Checking
That Leaves 500 Customers to InvoiceThat Leaves 500 Customers to Invoice
Your cost was $4.17 per invoiceYour cost was $4.17 per invoice
We will do the work for half… $2.08 per invoiceWe will do the work for half… $2.08 per invoice
500 customers @ $2.09 savings per customer =500 customers @ $2.09 savings per customer =
Savings of $1,045 Every Month
Enrollment? Enrollment? Again Again … Simple… Simple
One page One page agreementagreement
No long term No long term commitmentcommitment
We take care of We take care of your billing from your billing from the day you sign upthe day you sign up
You’re doneYou’re done