Brennan & Clark, LTD.

Accounts

Receivable

Department

First, three simple rules:

1. Customers f ight 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. I f you allow a customer to get comfortable being a slow pay, he’s got no reason to speed up the process.

Days Sales Outstanding (DSO) or receivables turnover

No matter how you measure it, every day you carry areceivable, it costs you money.

It ’s not just that i t chokes your company’s cash f low.And it ’s not just the cost of capital.

The biggest problem is that i t deprives yourcompany of the abil i ty to invest those dollarsin areas that provide a real return .

Because there’s a fourth in the l ist of simple rules:

4. A dollar can’t be in two places at once. If i t ’s busy carrying a receivable, it can’t also be buying more inventory, or executing a new marketing program, or hir ing another salesperson, or acquir ing a competitor, etc.

It ’s your job to free up your company’scapital to invest in high value/high return

projects.

And it ’s our job to help !

Let us present our qualif ications

* 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

Most companies in our business offerthis basic menu of services:

Free demand letter

Contingency collect ions

Outsourcing phone or letter follow-ups

3rd party letter-writ ing service

Legal Services

We do all those things…

and more!

Automated Letter/Fax System

We will develop and sendcustomized correspondence to non-responsive past due

accounts.

And you pay a fee ONLY if recovery ismade.

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.

CASH NOW!

This option eliminates your risk entirely. Your resultsare guaranteed and your administrative costs areeliminated.

You will receive cash for any account placed within 5days of placement.

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 haveimmediate online access to track our progress.

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.

Now What?

Evaluate

Decide

Act

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.

Decide

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

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.

What does it really mean in dollars and cents?

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

Probabil i tyOf collectingValue

Carry cost@10%/year

DaysPast 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%.

The value of improving your collections is

staggering.

And we can help.

By the way, there’s a f i f th rule…

If your customer doesn’t pay you…

Nothing else matters!

800-868-7600800-868-7600info@brennanclark.cominfo@brennanclark.com

OurOur mission is to rise Beyond Collections by providing mission is to rise Beyond Collections by providing customized receivable support solutions that eliminate customized receivable support solutions that eliminate

credit losses.credit losses.