Commercial Finance GroupCommercial Finance Group A/R Program for The A/R Program for The

BankerBankerDo you need to collect a client’s A/R ?Do you need to collect a client’s A/R ?

Does your (otherwise) good client need Credit Does your (otherwise) good client need Credit Management and A/R collection help?Management and A/R collection help?

What do you do with a problem loan ?What do you do with a problem loan ?Do a “work out” ?Do a “work out” ?

Wait it out ?Wait it out ?Liquidate the collateral?Liquidate the collateral?

You can “suggest” a service to your borrower You can “suggest” a service to your borrower that is faster, cheaper, and vastly superior that is faster, cheaper, and vastly superior to their present credit granting and A/R to their present credit granting and A/R collection method (which would please you) collection method (which would please you) and be sincerely valuable and appreciated and be sincerely valuable and appreciated by your client;by your client;

……that can be implemented within minutes that can be implemented within minutes and be effective within hours after start-up, and be effective within hours after start-up, with almost no time money or effort with almost no time money or effort expended by their staff;expended by their staff;

……while it secures control of your client’s A/R while it secures control of your client’s A/R for you;for you;

……and still preserve the banks rights to take and still preserve the banks rights to take further action on the loan at a later date.further action on the loan at a later date.

The Advantages of CF’s The Advantages of CF’s ServiceService

Good For the Good For the ClientClient

Repay bank loan faster Repay bank loan faster Improve cash flow Improve cash flow Reduce overhead costReduce overhead costReduce credit losses Reduce credit losses Control A/R & credit Control A/R & credit taskstasksProvide cash for growthProvide cash for growthRestore positive Restore positive attitudeattitudeCF is potential new CF is potential new lenderlender

Good For the BankGood For the BankRestore “performing” Restore “performing”

status status

Reduce loss exposure Reduce loss exposure

Preserve collateral Preserve collateral

33RDRD party A/R verification party A/R verification

Establish control over A/REstablish control over A/R

Preserve the bank’s Preserve the bank’s choices of future choices of future

collection actionscollection actions

CF Improves Quality of Client CF Improves Quality of Client A/RA/R

• Our on-line system provides full A/R visibility Our on-line system provides full A/R visibility to you 24/7/365 from any PC.to you 24/7/365 from any PC.

• The data is in “real time”.The data is in “real time”.

• We provide Credit Management guidelines.We provide Credit Management guidelines.

• We check the credit of the client’s large We check the credit of the client’s large debtors.debtors.

• We identify risky debtors for C.O.D. terms. We identify risky debtors for C.O.D. terms.

• We recommend appropriate O/S collection We recommend appropriate O/S collection action.action.

• Our collection calls serve as “3Our collection calls serve as “3rdrd party” party” review.review.

CF Reduces Client’s CF Reduces Client’s ExpensesExpenses• Reduce payroll, taxes, fringe benefit, Reduce payroll, taxes, fringe benefit,

& facility cost by spending less on & facility cost by spending less on the “office” function.the “office” function.

• Reduce credit checking & report Reduce credit checking & report costs.costs.

• Reduce bad debts with good credit Reduce bad debts with good credit advice.advice.

• Reduce interest on bank loan.Reduce interest on bank loan.

CF helps:CF helps:

• Reduce credit “runaways”.Reduce credit “runaways”.

• Eliminate the need to give prompt pay Eliminate the need to give prompt pay discounts on A/R.discounts on A/R.

• Increase sales with better credit Increase sales with better credit screening.screening.

• Reduce Management’s time spent on Reduce Management’s time spent on credit & collection issues.credit & collection issues.

CF Does the A/R Service CF Does the A/R Service TasksTasks• Make collection calls to debtors.Make collection calls to debtors.

• Provide invoice copies as needed.Provide invoice copies as needed.

• Post cash payments received.Post cash payments received.

• Make bank deposits to any lock-box.Make bank deposits to any lock-box.

• Do statements & send payment Do statements & send payment reminders to past due debtors.reminders to past due debtors.

• Direct 3Direct 3rdrd party collection activities. party collection activities.

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

CF program does special CF program does special reportsreports• Need a dilution report?Need a dilution report?

• Need to track key figures or Need to track key figures or percentages?percentages?

• How about an aged customer statement?How about an aged customer statement?

• Need special information for an internal Need special information for an internal report?report?

No Problem !!No Problem !!

Dilution Report (Sample)Dilution Report (Sample)

CF keeps a “collection CF keeps a “collection notes” lognotes” log• Logs all contacts with client’s debtors.Logs all contacts with client’s debtors.

• Provides legal proof of collection efforts.Provides legal proof of collection efforts.

• Confirms Debtors knowledge of debt.Confirms Debtors knowledge of debt.

• Enables bank or client review of contacts.Enables bank or client review of contacts.

• Enables analysis of debtor payment delay.Enables analysis of debtor payment delay.

• Provides continuity of collection efforts.Provides continuity of collection efforts.

CF suggests prudent credit CF suggests prudent credit limitslimits

CF Program Fees to Bank’s CF Program Fees to Bank’s ClientsClients

A one-time set-up fee in the amount of $250.00.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: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. 1.75% from $1,000,001 to $5,000,000. 1.50% from $5,000,001 to $20,000,000.1.50% from $5,000,001 to $20,000,000. 1.25% from $20,000,001 to $30,000,000.1.25% from $20,000,001 to $30,000,000. 1.00% from $30,000,001 1.00% from $30,000,001

Fees are computed on a rolling 24 month period, based on the following:Fees are computed on a rolling 24 month period, based on the following: Electronic data submission.Electronic data submission. Add .125% for manual methods. Add .125% for manual methods. All charge customers are included*. Add .250% for partial All charge customers are included*. Add .250% for partial

participation.participation. Average invoice value of $500.+ Add .125% if average is less.Average invoice value of $500.+ Add .125% if average is less. Customers accounts =10K Per Yr. 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.Early termination charges may apply. There are no other fees or charges.*Fee reductions may be elected for special customers requiring “no CF service”.*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.Special rates apply to “work-outs” and accounts under $1,000,000 per annum.*Assumes 80% repeat customer base. *Assumes 80% repeat customer base.

CF Service Start-up CF Service Start-up ScheduleSchedule• System installation requires only 5 minutes.System installation requires only 5 minutes.• Our set-up team scans documents to capture data.Our set-up team scans documents to capture data.• Collection work can begin the day data is acquired.Collection work can begin the day data is acquired.• Clients need a 56K modem, or DSL connection on a Clients need a 56K modem, or DSL connection on a

PC running windows 98 or newer.PC running windows 98 or newer.

Data is imported into our system from the client’s files Data is imported into our system from the client’s files in a delimited text file format. In the event no export in a delimited text file format. In the event no export function is provided we may furnish a custom function is provided we may furnish a custom program interface at little or no cost to the client. program interface at little or no cost to the client.