INTRODUCTION TO BANK DRAFT PROCESSING
The CFI Group - Representative Information Page
Welcome to the exciting business of Bank Draft Processing! This business is the hottest business service being offered to small to medium sized businesses in America today. And you are on the cutting edge of the industry as a representative for one of the first Draft Processing Centers in the United States.
The idea of drafting customers for small businesses, to solve their biggest problem, which is cash flow, is not new in one respect. It has been by large service companies electronically for the past 15 years or so. But this involves large set-up fees, highly technical computer configurations and software, on-going maintenance charges, telecommunications structures, as well as a high level of technical knowledge and competency on the part of the company wishing to draft their customers.
Using paper drafts to do the exact same thing may seem, at first, a step backwards, technologically. Actually, we are simply utilizing the existing paper check system to solve the cash flow problem, thus simplifying the entire process. We eliminate the need for the business owner to invest in computers, modems, printers, software, and staff to do the actual input and transmission of data. This also eliminates the need for hiring "computer literate" staff members who may not be as knowledgeable as they should be and who may inadvertently mess up files, lose data or otherwise mismanage valuable company information. And, as far as the company is concerned, the end result is exactly the same - money in the bank on a regular, consistent basis.
Besides, by turning the whole process of "cash collection" over to an outside firm, the company can utilize it's own staff to do the things that actually generate income for the company. This is called outsourcing and it is the wave of the 90's and will continue into the next century as the most effective, efficient way to operate a business.
The business should concentrate on doing what it does best to produce
the cash flow and let us do whatever it takes to keep the cash flowing.
In most cases this can be done at less expense to the company than if they
did it themselves. At the same time, our Drafting Center Sales Reps can
make a very substantial income by providing this needed service to the
businesses in our community.
THE PROBLEM
According to the Small Business Administration, most small businesses
fail within the first two years due to a lack of capital; in other words,
poor cash flow. The invoices are mailed out on the first of the month,
and most of it does not come in until towards the end of the month (if
ever!). Follow-up letters and phone calls bring in most of the balance,
but then the process starts all over again the next month. Business owners
waste hours each month collecting money they have already earned (and,
in most cases, have invested time and money producing the goods and/or
services for their clients). Without proper cash flow, the business cannot
order new materials or pay employee salaries, thus falling farther and
farther behind in their accounts payables. This is a vicious cycle, and
most small business owners can identify with it easily.
THE SOLUTION
If a small business owner could have most of their accounts receivable payments delivered to them on the first of the month, all of the above problems would be solved instantly! This is why we refer to our Bank Draft Processing Service as an Instant Cash Flow System. It instantly solves the cash flow problem for a small business, thus freeing up the owner's time, and his staff, to do the things that generate income. Sending out invoices doesn't generate cash flow -- it only attempts to collect money already earned. This type of routine service should be turned over to a service agency -- just as most companies turn over their taxes to an accountant and their payroll to a payroll service. This is where you come in...
THE BANK DRAFT PROCESSING CENTER
As a sales rep for The CFI Group, you can provide this vital service to small and medium sized businesses in your area -- saving the business money and, in turn, making large profits for yourself. Our company, The CFI Group, provides some marketing materials, and a number of support options to make sure your business is successful.
Potential clients include doctors, dentists, self-storage rentals, private schools, trash pick-up companies, health clubs, non-profit organizations, apartments, answering services, janitorial services, trade schools, newspapers, pager and voice mail services, public radio and television stations (donors), pest control services, medical equipment stores, alumni associations, tote-the-note auto dealers, rent-to-own stores, lawn care services, carpet cleaning companies, marinas and airports, maid services, cable TV services, YMCAs, YWCAs, buying services, and many others. We are coming up with new categories every week!
Now, let's look at an overview of what the business is all about, step-by-step,
in order to clarify what we actually do to help the businesses smooth out
their cash flow.
AN OVERVIEW OF RECURRING DRAFTS
How It Works, Step-by-step
Our Instant Cash Flow System works like this:
1. You can select, print and mail out one of several proven direct mail pieces to businesses in the area.
2. The business owner faxes or mails back a request for more information and you call and make an appointment; or, you may utilize a local telephone marketing company to set up appointments with business owners for you.
3. You make a simple 15 minute presentation explaining how our system works.
4. You help the business owner decide on what type of "authorization form" he wishes to use to induce his customers to sign up on the draft. This is actually a marketing tool that will "sell" the idea of the periodic draft to his customers. Many businesses offer an incentive of some sort to encourage customers to sign up on the draft; others simply make it one of two options: pay cash for a year's service (membership, donation commitment, etc.) or sign up on the draft.
5. The business owner mails out (perhaps along with his next invoice) the authorization form we have designed. A certain percentage of his customers will sign and return the authorization form, along with a voided check. Each month, a larger number of customers will sign up, so this authorization form should be included in every mailing for the next few months, until the sign-ups diminish appreciably.
6. Business owner must keep authorizations on file in the event of a dispute. He then transmits the pertinent information to us.
7. We enter customer information into our software package.
8. On the due date, we print the bank drafts (on our preprinted blank drafts) using special magnetic laser printer toner. Our software 'Knows" when a draft is due and will only print the drafts due to be printed each day.
9. Our software prints a summary which will be delivered along with the drafts.
10. The business owner receives the drafts on the same day of the month
each month and we draft the business owner for the service fees.
We also offer a "deposit service" to your customers for an extra fee.
11. Business owner deposits the bank drafts as he would any batch of
checks. The bank processes the bank drafts just as they would any check,
forwarding the drafts to the customers' individual banks. The money is
debited from the customers' accounts only on the day the business owner
deposits the drafts. This means the business owner maintains complete control
over the drafting process.
12. The customers' bank accounts are debited for the amount of the draft (remember, they gave us an authorization to do so) and the customer receives the canceled draft, along with his bank statement and his other canceled checks, at the end of the month. He thus has a printed record of the draft on his account and can balance his checkbook accordingly.
13. Any customer changes / additions / deletions can be faxed to us each month (or can be mailed or called in by the business owner) and we then update his computer records before printing the next month's drafts. Remember, except for these few monthly changes and additions, your only "work" is to deliver (or deposit) the drafts each month!
NON-RECURRING DRAFTS - FONE CHEX
The principal and the mechanics are the same except that no authorization forms are needed. The business owner simply transmits information to us and we print and return the drafts to be deposited.
THE PROFIT POTENTIAL
You have so many different categories of prospects, that it is hard to pinpoint the "average" number of drafts you might sell in a month for any particular client. However, we believe that a diligent worker can earn several thousand in the first year.
And remember, if you are doing a good job for your clients, you will be able to obtain referrals from these satisfied clients. In fact, this is how your business will grow on a regular basis, once you have a few clients on board Business owners all know other business owners, and they all know their biggest problem is cash flow.
And only you can help them solve this problem!