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Did you know that
the older an account is, the
less recoverable it is?
Source: U.S.
Department of Commerce
Transworld Systems Inc. and
its GreenFlag Profit Recovery
System meets our requirements.
We expect it will help many
professional firms better manage
their receivables, and thus,
protect their profits.
What is the
secret of the GreenFlag Profit
Recovery System?
It is its unique
design to work delinquent
accounts earlier. As the
chart from the U.S.
Department of Commerce
shows, the older an account
is, the less recoverable it is.
Research shows that for 100 late
accounts:
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At 90 days,
26% are uncollectible
-
At 120 days,
35% are uncollectible
-
At 6 months,
70% are uncollectible
-
At 1 year,
all the invoices are
virtually worthless
Most
businesses wait too long to turn
accounts over to a collection
agency, usually 6 months or more.
The keys reasons for delay are:
-
I want to
avoid the high cost of
traditional collection
agency services.
-
I’m afraid of
alienating potentially
“good” customers.
GreenFlag Profit
Recovery stands out among
various solutions because it
offers a Low, Flat Fee averaging
$10 per account. In comparison,
collection agencies charge a
high percentage of what they
collect. Part of the reason for
the high charge is the low
collection rate associated with
old invoices. Another
differentiator for GreenFlag
Profit Recover is the diplomatic
approach its takes when
collecting past due account. It
works to keep your customer, not
alienate them.
Some of GreenFlag
Recovery’s statistics for its
early intervention collection
system shows very good recovery
rates. For example, 56% of
collections carry an average
cost of 7 cents on a dollar.
Comparatively, traditional
collection agencies collect 16%
of invoices at an average cost
of 33 cents on a dollar. In
short, GreenFlag Recovery’s
clients receive three times the
recovery rate at about one-sixth
the cost.
As you can see,
working a late account sooner,
when it is more collectible,
reduces the risk of loss revenue
and profit associated with a
delinquent invoice. You receive
more of the monies owed you. To
learn more about the GreenFlag
Recovery System, and to receive
a free Accounts Receivable
Analysis, contact Vito Mazza at:
vito.mazza@transworldsystems.com.
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