CLOSED ACCOUNT SUMMARY
Our Closed Account Summary represents a comprehensive report that we can provide every six months, once a year or for any other designated period of time. This summary must be requested. When our handling of a placement is complete, collection data is entered into our computer. The column headings include the WWI file number, debtor name, your account number, the placement date, closed date, $Placed, $Collected and Fees Paid.
The summary printout enables our clients to track the Recovery Ratio, which is a comparison of Total Dollars Placed and Total Dollars Collected; the itemized fees paid and dollars collected on each account and the overall agency fee rate %, which are Total Fees/Total Dollars Collected. We include a bankruptcy query listing of those placements where the debtor has filed for relief either in Bankruptcy or an “Assignment for the Benefit of Creditors.”
The Recovery Ratio has the most significant impact upon a company’s Bottom Line Net Profit. For a more detailed explanation how net profit can be affected, please refer to the “Bottom Line Net Performance Chart,” which exemplifies and compares agency performances. THE GREATEST IMPACT TO NET PROFIT IS THE RECOVERY RATIO.
In a comparison amongst agencies, if the Recovery Ratio is 2% higher, then there is a significantly larger contribution to “net profit,” which, at this point, renders a Fee Rate comparison as insignificant. In other words, the fee that an agency charges only becomes important in a comparison when the Recovery Ratio by both agencies are identical, which is, of course, impossible.
SIX-MONTH SUMMARY – JANUARY 1 – JUNE 30
Dear (Credit Manager):
Enclosed you will find the most recent Six-Month Closed Account Summary. The cumulative statistics are as follows:
· $104,017.92 – Total Amount Placed Excluding Bankruptcies
· $91,257.03 – Total Amount Collected
· $11,978.41 – Total Fees
· 87.8% - Recovery Ratio determined by Total Amount Placed/Total Amount
· 13% - Average Collection Fee Rate including Free Demand, Preliminary and
· $10,552.17 – Total Filed Under Bankruptcy
This Closed Account Summary reveals some of the best statistics that we have ever been able to compile on your behalf. The 87.8% Recovery Ratio, together with the 13% Average Fee Rate is nothing short of exceptional. I would certainly hope that the potential is there where these types of results warrant an opportunity for Williams & Williams, Inc. to be of additional service.
Always remember that the Closed Account Summary reflects every account that is closed whether in full, partial, by a settlement or without recovering one cent. We are working hard to try to resolve all of the other accounts that you have with us.