Proposal for Profit Recovery Services
& Automating the Collection Process
for Utility Companies
by Daniel Nelson
(586) 531-4825
daniel.nelson@transworldsystems.com
Presentation for Utility Companies
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About Us
Since 1970, Transworld has led the ARM &
Collection Industry in Profit Recovery.
Transworld’s Recovery Rate is consistently higher (56% on
average) than the national collections average (14%).
We recovered more than $2.4 Billion in the last 5 years for
60,000+ clients, including many Fortune 500 companies.
Nationwide Presence:
• 100 Offices
• 20 Call Centers
• 700+ Profit Recovery Specialists
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What the Experts Say
• “…a long term proven record of being able to deliver twice the
normal recovery rate at a fraction of the normal cost.”
> Shearson Lehman
• “Transworld gets credit for the highest recovery rate in the
industry.”
> Barron’s
• “The Company has a collection rate of well over 50%. The typical
collection firm gets only 20% and keeps 25% to 50% of recovered
funds.”
> Fortune Magazine
• “Transworld is one of the nation’s leading accounts receivable and
bad check collectors..they represent many member firms.”
> Better Business Bureau
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Conventional Collection Approach
Current
1
Statement
STEP ONE:
In-House
Efforts
30
60
90
120
150 Days
Days
Days
Days
Days
Statement
Statement
Statement
Statement
Statement
Phone
Call
Phone
Call
Phone
Call
Phone
Call
Phone
Call
Letter #1
Letter #2
Letter #3
According to the Dartnell Institute, the average cost of working an account
internally over a six-month period is $31.60 per account.
2
180 Days
STEP TWO:
Percentage
Collection
Agency
Conventional Collection Agency or Legal Action
30-50% Contingency
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Start Early – Recover More
Account Depreciation
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GreenFlag’s Three Phase Approach
1
STEP 1:
In-House
Efforts
2
STEP 2:
Transworld
Systems
3
STEP 3:
Conventional
Collection
Methods
Current
30 Days
60 Days
Statement
Statement
Statement
Phone Call
Phone Call
Limit internal efforts to less than $11 per account
90 Days
104 Days
118 Days
132 Days
146 Days
We contact the slow paying accounts every 10-14 days – at
the client’s direction. Making up to five contacts from one of
50+ debtor contact offices – each progressively stronger.
Fixed fee – averaging less than $10.00 per assignment,
regardless or age or balance due.
176 Days
Transworld Systems – Verbal Demands
for Call Center Services
30-50% Contingency
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Start Early – Recover More
National Statistics Prove It
•
The American Collectors
Association (ACA) reports an
industry recovery rate of 14%,
and a collection cost averaging
33% per dollar recovered.
•
Transworld’s clients
experience a recovery rate
averaging 56%* at a cost of
approximately 4 cents per
dollar recovered.
*age of accounts determine recovery rate
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The Power of Written Demands
Why do GreenFlag written
demands work so well?
We’ll send Thank You
notices upon request to
customers that Pay In Full.
• Return address is from one of our 100 offices nationwide
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• 5 Contacts at 10 or 14 day intervals
8
The Power of 3rd intervention
100+ TSI Offices add provide local impact
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GreenFlag Profit Recovery Advantages
•
Standardizes the A/R process for slow paying accounts
•
•
Our service GUARANTEES these accounts are contacted
every 10-14 days.
Identify and evaluate existing A/R
•
Effective tool for clean-up
•
Completed within 90 days
•
Gives the client the advantage of using a third party, diplomatic
approach earlier in the process – payments are sent directly to you
•
Maintain customer relationships – offering either ‘pre’ shutoff and
‘post’ shutoff’ notices on the demands for payment / arrangements
•
Reduces internal collection costs and staff overload
•
Low flat fee averaging less than $10.00 per account
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Reduce expenses and Increase recovery
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24/7 Online Access
• Accounts submitted
via secure web portal
• User friendly
• 24/7 access
• Client controls when
accounts are started,
stopped or suspended
• Provides complete 24/7
reporting on all accounts
• View our Video Clips at
www.transworldsystems.com
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24/7 Online Reporting
Online Reports Page of the
Transworld Systems Online
Client Portal (OCP)
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Thank You!
OUR MISSION
Transworld Systems will
consistently provide clients with
the industry-leading receivables recovery rate,
through a relentless pursuit of quality,
supported by innovative technologies.
Contact info: Dan Nelson (586) 531-4825 cell# daniel.nelson@transworldsystems.com
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