Payment Automation Network, Inc.

www.PaymentAutomation.net

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Cash Flow Solutions

For Business

Cash is the life blood of any

business

“Four out of five small businesses fail in the first two years due to lack of capital (cash flow).”

Small Business Administration

The Problem:Billing &

Collections

• It’s expensive to do

• Customers often don’t pay on time

…Both of Which Result in CASH FLOW

Problems!

The Need: Cash Flow

Invoicing the Customer is Expensive :

– Average Cost: $4.17 per invoice for small businesses*

– Internet research shows the average cost to be $9.65 for all businesses• Forms, Envelopes• Postage• Accounting Labor• Follow-up Labor• Equipment/Overhead• Cost of Outstanding Money

* Source: 1998 Study by Harvard Business School

Innovative Services

Billing & Invoicing Services

Other Cash Flow Services

Pre-Authorized Checking

Pre-Authorized Checking

What would it be worth to you if you could get payments from your customers on the same day of the month…every month…without ever sending out an invoice?

Our Clients Say… “It’s Worth A Lot!!”

The Traditional Billing Process

Business’ BankBusiness’ Bank Customer’s BankCustomer’s Bank

BusinessBusiness

Invoice is SentInvoice is Sent

Payment is ReturnedPayment is Returned

CustomerCustomer

How Pre-Authorized Checking Works

Your customer completes & signs the pre-authorized payment form

You forward the customer information to our processing center via telephone, fax, US Mail or delivery service

We enter your customer’s information into our system

We print a paper demand draft (check) on the same day(s) each month and deliver them to you for deposit

You’re Already Familiar With This

Service•Used for years by. . .

• Mortgage Companies

• Insurance Companies

• Health Clubs

Now Pre-Authorized Checking Is Available To

Every Business…

Including Yours.

Other Businesses Using Our Services

Pager and Voice Mail Services

Self-storage Rentals Private Schools Trash Pick-up Companies Non-Profit Organizations Churches/Synagogues Answering Services Trade Schools Newspapers Lawn Services

Alumni Associations Apartments Bottled Water Companies Cable TV Services Day Care Centers Pool Services Public Radio & Television Home Security Companies Utility Companies … and Many More

Why Do You Need Drafting?

Regular monthly payments come in automatically

Customers that pay over a period of time pay regularly

You can save money by not sending out monthly bills or invoices

Why Do You Need Drafting?

Even if you don’t use drafting, your competition will

You can use the time and money spent on collections as profit

You can offer your customers another payment option

How Much Does It Cost?

• We charge a small fee per check• Fee ranges from $1.50 to $3.00

depending on:– Number of customers participating– Anticipated 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: Home Security Co.

1,000 customers $30 average monthly fee $30,000 monthly revenue Send out invoices @ $4.17 each 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: Home Security Co.

1,000 customers Half participate in PAC (500 Customers) 500 still cost $4.17 each = $2,070 500 now at $1.50 each = $750 Total invoicing cost now just $2,820 per

month A Savings Of $1,350 A Month…& Half Of All Money Is Collected Instantly!

Using Pre-Authorized Checking

How Much Money Can You

Save?

Tanning Salons – 500 CustomersSave $1,335 per month for each location

Child Care - 1,500 CustomersSave $4,005 per month

Condo Association - 250 UnitsSave $668 per month

What About You???

Examples (assuming $1.50 fee per check)

How Much Money Can You

Save?What Is It Worth To Have:

Your customers’ payments in your hand

Ready to deposit

On the first day of the month

Every month

The Bottom Line: Get Your Bill To The TOP of

The Pile

When your customer is deciding whether to pay

you or someone else, isn’t it nice to know that we

get YOUR money automatically?

Your Options:Large Payment Processing

Companies

Want only large accountsNo local service Too expensive for small

merchantsLimited servicesCustomer service issues

Other Options: Institutional Banks

“Hidden” Fees Conversion fees, diskette processing fees, debit fees,

reversing fees, correcting fees, credit fees, origination fees, pre-note fees, addenda record fees, return item fees, notification of change fees and monthly account minimum fees

Software to buy or lease Complete Credit/Background Checks may be involved Processing options may be limited 5 Day Pre-delivery Prior to Processing 2 Week Pre-notification of Changes/Additions 10% to 20% Reserve At All Times YOU DO ALL the Work

Initial Data Entry and Updates, Backups, Modem Transfers, Follow-ups

Why Use Us?It’s Simple

• We do all the work• Provide all paperwork & documentation• No hidden fees• No credit checks on customers• No software to buy, learn, or maintain• Changes are easy to make• WE GET YOUR MONEY…• YOU RUN YOUR BUSINESS!

Enrollment …Simple

One-page agreement

No long term commitment

We send notice to your bank

You’re done

Billing & Invoicing

Professional Billing and Invoicing

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: Savings Example

Same Home Security Co. With 1000 Customers

Only 500 are on Pre-Authorized Checking

That Leaves 500 Customers to Invoice

Your cost was $4.17 per invoice

We will do the work for half… $2.08 per invoice

500 customers @ $2.09 savings per customer =

Savings of $1,045 Every Month

Enrollment? Again … Simple

One page agreement

No long term commitment

We take care of your billing from the day you sign up

You’re done

Payment Automation Network, Inc.

CALL (800) 813-3740

or visit www.PaymentAutomation.net