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Help Business Owners Collect the Money They Are Owed

Pre-authorized checking is branded as the Patient Payment Plan™ for doctors, but as an ABS Licensee, you can market the same service to businesses as well and earn recurring monthly income.

Invoicing and collecting payments is a time consuming and expensive process in business.

Network 1 Financial Corporation conducted an independent study that revealed the average cost for a typical business is $10 to issue an invoice which includes all this:

• Printing costs for the forms and envelopes
  
• Postage and handling
  
• Payment to accounting personnel
  
• Follow-up labor to collect on invoices
  
• Equipment costs
  
• The cost of outstanding money.

The bottom line is simple:
It costs a business a lot of money just to collect what’s owed to them.

Businesses are often at the mercy of their customers, who often delay payment for weeks or months, regardless of the payment due date on the invoice or statement. While a business owner may be under pressure to pay for inventory or monthly expenses, cash flow can dwindle. Sometimes the cash-flow drops so low that the business itself needs to borrow money or tap a line of credit to get through a cash shortage.

Credit cards are important to businesses. They’re convenient for their customers and provide instant cash flow.

The downside of accepting credit cards is that each credit card transaction costs the business a percentage of the sale. Business owners are sensitive to the fact that these fees are getting higher, pinching the cash flow even more.*

• Merchants typically pay a transaction fee plus a percentage.
  
• Average merchant fees have risen from a low point 15 years ago to an average of 2% of the sale today.
  
• Actual percentages can vary dramatically depending on the industry. Fast-food restaurants pay less than an Internet marketer.
  
• Actual percentages also vary based on the credit card, notably American Express is among those charging 2%+ to more than 3%. Some retailers report they have paid an overall average of 5% of all credit card sales.

These are the pressures that keep business owners awake at night. They are also problems you, as an ABS Licensee, can help solve with Pre-Authorized Checking.

Three key reasons businesses want to offer
Pre-authorized Checking

1. Pre-authorized checks put the business owner in control of cash flow by getting regular on-time payments.
2. The cost of the transaction is transferred from the business to the customer in the form of the small service fee that you, as the Licensee, add to each monthly check you process for the business.
3. A huge new market is available to businesses as credit-crunched customers now have a low-cost alternative to credit cards when purchasing higher-priced goods and services.

Pre-authorized Checking is also appealing to customers.
Here’s why. . .

• Customers can make regular payments, just like with a credit card, but without maxing out their cards.
  
• Current credit card interest rates range from 7.9% to 25.24%. By comparison, the modest pre-authorized check program costs them far less as the fees usually are in the 5% range, without compound interest adding to the debt burden.
  
• With credit card companies tightening the reigns on late fees, consumers are sometimes worried about putting more charges on their cards. On average, penalty rates are 24.51% and at least one was found to be as high as 32.24%.**

When a business can provide Pre-authorized Checking – a lower-cost alternative than a credit card – it’s helpful for both the customer and the business. The demand is there from businesses and customers. You can be the one to fill it.

Generating recurring income with
Pre-Authorized Checking is simple:

The good news for the business owner is that it doesn't cost him or her anything. At the time of the sale, the customer agrees to pay a certain amount every month by authorizing a draft to be made against his or her checking account.

The customer pays for the privilege of paying out their bill. You add a small service fee, usually about 5%, to each payment. As mentioned before, this is less than they would pay if they put the payment on their credit card.

On the designated day of each month, you print out the check(s) for the customer(s) on the program and deliver the stack of checks to the business owner, who can deposit them immediately. These monthly checks provide a reliable boost in cash flow for the business.

This is a win-win-win situation for the business owner, the customers and you.

Business of all sorts can benefit
from offering this service.

You see now why all kinds of businesses will be excited to find out that you offer Pre-Authorized Checking.

Here is a partial list of the kinds of businesses that are prime prospects for this service:
Private schools Trash pick-up companies Non-profit organizations Apartments Answering services Janitorial services Trade schools Newspapers Pager and voice mail services Public radio and television stations (for monthly donations) Buying services	Funeral homes Alumni associations Tote-the-note auto dealers Rent-to-own stores Lawn care services Self-storage companies Marinas and private airports Maid services Musical instrument rental stores Cable TV services

. . .And many more.

In addition, our Licensees are coming up with new categories every week. This is an incredibly easy method to expand your income with one simple system.

Ask your ABS Representative for more information on how you can profit from this exciting cash-flow solution.

Request more information and learn more about this exciting service.

*The figures shown regarding merchant fees from an article, “Merchants Pay More to Accept Credit Cards” online at the Tennessean.com, 4/8/07.

** Consumer Action’s 2007 Credit Card Survey released May, 2007