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Pro-Power is designed to be a private-label, turnkey sales and financing program
offered under your name for your customers. Pro-Power enables your customers to satisfy their ongoing purchasing
needs within an established credit limit. Your receive the sales proceeds up-front and your customer has
affordable, flexible monthly payment options.
WHOLESALER BENEFITS
Participating wholesalers find that the Pro-Power Program provides substantial
benefits to their companies, including:
- Immediate improvement of cash flow with typical funding of sales within 24 hours.
- Reduction of wholesaler's DSO and the cost to carry those receivables.
- Decreased exposure to bad debts and increased bottom-line profits.
- Outsourcing of billing and collections, which decreases operating expenses and reduces staffing requirements.
- Increased sales by providing customers the option of managing their cash flow.
- The Pro-Points Rewards Program that assists in increasing sales by rewarding customer loyalty and repeat business.
- On-line access to customer accounts and detailed executive reports.
CUSTOMERS FIND PROGRAM BENEFICIAL
Customers using the Pro-Power Program achieve numerous benefits including:
- Flexible monthly payment options to help manage cash flow
- Increased business credit, which allows business owners to save personal credit resources for personal needs. This
is particularly helpful in providing working capital for customers without a banking relationship.
- Generous credit limits that are designed to meet purchasing needs within financial capabilities.
- Up to 52 days to make payments, without incurring finance charges.
- Free travel and merchandise rewards for using the wholesaler's Pro-Power Program (through participating Members).
- Informative monthly statements with on-line access that tracks purchases, improves
efficiency, allocates job costs, and helps control expenses. Customers have the option
of having the statements mailed, emailed, or faxed.
- Access to account balance, history, available credit and account
statements, as well as the ability to authorize payments through 24/7 Internet access.
HERE'S HOW THE PROGRAM WORKS:
- Wholesalers select which customers to put on the program - there is no minimum
number of accounts required to participate.
- Wholesalers receive private-label applications with the wholesaler's
logo and marketing materials from FMSI. Completed applications with the wholesaler's
credit limit request are typically processed within 24 to 48 hours.
- The suggested credit limit for the applicants is 2-3 months of
expected sales for the customer, however the actual credit limit granted is based on the
account type and/or the creditworthiness of the applicant.
- Personal guarantees by the customer are requested, but not
required because the Pro-Power account is business credit.
- Wholesalers indicate the account type on the application
and must select from Non-Recourse, Shared Recourse, or Recourse.
- Non-Recourse accounts have a minimum credit limit of $1,000 and a
maximum credit limit of $49,999. Credit limits are determined by FMSI and are based
solely on the financial status of the applicant. Higher credit limits are available
as either Recourse or Shared Recourse accounts. Non-Recourse transaction fees are
higher as a result of the increased credit risk.
- Shared Recourse accounts have no minimum or maximum credit limit.
FMSI and the wholesaler share the credit risk equally. In the event of customer
default, FMSI and the wholesaler would share the loss equally at 50% each. Credit
limits are requested by the wholesaler, but are underwritten and approved by FMSI.
Shared Recourse transaction fees are lower as a result of the shared risk and the
wholesaler may qualify to participate in the FMSI interest rebate program.
- Recourse accounts are opened with credit limits determined
by the wholesaler as they are the party responsible for repurchase of the account
in the event of customer default. Wholesalers have an established credit limit
for cumulative recourse accounts that is based on their financial strength. The
transaction fee for recourse transactions is significantly lower as a reflection
of the limited credit risk and the wholesaler may qualify to participate in the
interest rebate program.
- The wholesaler and the customer are notified upon approval of
credit and the customer receives a welcome package reiterating the account
agreement as well as a confidential access code for the Pro-Points Program
(if applicable) and instructions on how to register online for account accessibility.
- Sales transactions can be processed by credit card terminals,
on-line access, or by batch FTP each evening. In addition, certain wholesaler
software programs may already have compatible communication created specifically
for Pro-Power.
- Acceptable sales transactions must be current, which is
considered to be within fourteen days of the date of the customer purchase
of goods and simultaneous invoicing by the wholesaler. Sales transactions older
than fourteen days from the date of customer acceptance of goods are generally
not acceptable and would require approval by FMSI management.
- Sales proceeds typically are completed daily for Pro-Power
transactions occurring in the prior 24 hours, via ACH to your bank. The daily
settlement statement contains the detailed sales activity for the day as well as
the applicable transaction fees and is available on-line and can be downloaded for
your internal use.
- Transaction fees are netted against the daily sales proceeds
and decrease as the wholesaler monthly volume increases. See the Pro-Power
Pricing Sheet for details.
- All billing and collection is performed by FMSI, allowing
the wholesaler's staff to concentrate on sales, not collections.
- Statements are produced monthly with payments due not less
than 22 days after the billing date. Customers can receive up to 52 days to
make their payment without incurring finance charges, or can take advantage of
the flexible payment option by making the minimum required payment of 10% of the
outstanding balance.
- Wholesalers can access customer account information as well as
detailed portfolio reports 24/7 via Internet access. Secure User Id's and Passwords
allow wholesalers to grant access to branches as well as corporate offices for
up-to-date information.
- Customers can access their account balance, history, available
credit, and account statements on-line as well as authorize electronic payments.
- Finance charges, late charges, service charges, and transaction fees
can be found on the Pro-Power Pricing Sheet.
- The Pro-Points Rewards Program is an optional feature of the
Pro-Power Program. This program is a sales tool designed to encourage customer
loyalty and repeat business by rewarding valued customers with travel and
merchandise. Please see the Pro-Points Rewards Program for further details.
SUCCESS WITH PRO-POWER
To be successful with Pro-Power, sales and credit representatives must be
knowledgeable and enthusiastic. Cash flow, sales, and bottom-line profit will
increase proportionally to the effort made by these key personnel. As an involved
partner, FMSI will work closely with the wholesaler to ensure that staff has a
thorough understanding of the program. Customized marketing materials
are provided to assist in encouraging customer participation and Pro-Power
representatives are always available to provide responsive service to the wholesaler.
PRO-POINTS
The Pro-Points Rewards Program is a voluntary loyalty/frequency
program designed to increase contractor sales.
The program was created in partnership with Hinda Incentives,
a full-service incentive company providing name-brand merchandise and travel awards.
Using state-of-the-art, e-commerce technology, customers will be able to view their
point bank and the Award Catalog, as well as their orders on-line. The Award Collections
include more than 2,000 selections ranging from useful household items to exotic
travel programs.
A sample of the award offerings can be accessed through the
fmsi-contractorscredit.com website as follows:
- Click on the Pro-Points Rewards "flying jet" icon on the FMSI Home page or
the Customers Only page.
- Login using "guest" and the password "fmsi".
The Pro-Points Rewards Program is an optional feature of the
Pro-Power Revolving Business Account. While Member participation in the Program is
encouraged, the decision to participate in the Pro-Points Rewards Program is made
by each Member. Participation in the Program allows the Member to either
automatically enroll all of the Member's Pro-Power customers in the Program or the
Members can decide to selectively enroll customers.
Pro-Points are accrued for the full purchase price of merchandise purchased and
received at participating wholesalers and charged to the Business Account, and for
which payment of the purchase price (principal only) has been made to and received
by FMSI. One (1) Point is accrued for each one (1) dollar of payment of principal.
A minimum of 25,000 points is necessary for redemption eligibility.
The cost of the Pro-Points Rewards Program for the Member is .005 or a half-cent for
each point. The awards are billed to the Member upon redemption, net of the Pro-Point
Reserve held back from the transaction fees. For example, award redemptions of
25,000 points would translate to a cost of $125 to the Member and a minimum purchase
from the Member and repayment to Contractors Credit of $25,000.
The Pro-Points Rewards Program is another benefit of using the financing products of
FMSI and specifically using the Pro-Power Revolving Business Account. Give your
customer a token of your appreciation and incentive to purchase more from you by
enrolling in the Pro-Points Rewards Program.
Click here to view the Pro-Points Brochure.
PRO-POWER SIGNATURE
The Pro-Power Signature is a proprietary closed-end
financing program offered through the wholesalers' and distributors' preferred
contractors to their business or consumer customers.
Contractors close the sale by providing a financing
alternative to their customer. The wholesaler then receives the business and
is guaranteed payment by FMSI and the contractor receives the net proceeds upon
customer job acceptance. Pro-Power Signature can also be used to provide
showroom-financing options to customers.
Pro-Power Signature Offers Many Benefits:
- Wholesalers increase sales by providing financing tools to
contractors and their customers.
- Wholesalers can increase showroom sales by providing financing
alternatives for customers.
- Approval by FMSI translates to guaranteed cash flow for the wholesaler
and the contractor.
- Wholesalers encourage repeat business by offering preferred
contractors opportunities not available at competitors.
- Wholesalers can complete with big box retailers by offering
competitive financing programs with no risk to the wholesaler.
Here's How the Signature Program Works:
- Wholesalers choose their preferred contractors to participate
in the program.
- Wholesalers and contractors are provided with marketing materials,
applications, program rules, and payment amortization schedules to accurately quote
monthly payments to customers.
- Customers complete the Pro-Power Signature application.
Wholesalers and contractors typically receive the credit decision within 24 hours.
- Upon approval, the contractor purchases supplies from the
wholesaler and starts the job.
- Upon job completion, the customer signs a job payout authorization
and FMSI pays both the wholesaler and the contractor according to the loan closing
statement previously approved by both parties.
- The customer will receive monthly statements beginning the first
month following payout of the loan closing.
- Finance charges accrue from the date of the payout and job
completion at an annual percentage rate of 18.99%.
- The repayment period is 60 months with no pre-payment penalty.
- A late charge of $35 is assessed for each billing period which
the minimum payment is not received by the due date. A service charge of $25 is
assessed if a check is returned for any reason.
See the Pro-Power Signature Program Guide for complete program
details, terms, and conditions.
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