Lyon Credit Services

Why Lyon Credit Services? Since 1876, Lyon has provided financial information and assistance to businesses in North America. Over the past three centuries Lyon has adapted with and excelled at meeting the challenges of our clients in an increasingly competitive environment. Choosing a trusted partner in today’s constantly changing business world is more critical than ever. Longevity, professional credentials, affiliations and ability to adapt to your needs are qualifiers that not only affect your business but are also a direct reflection on you. Lyons approach to solving this problem is simple….we listen. Our collection programs, remittance policies and customer service programs have all been developed with the direct involvement of our clients. Through this policy we have created a complete collection system that we feel is worthy of your consideration.

The Lyon Family of Companies Lyon Collection Services Account receivable management, debt recovery, nationwide attorney representation, Collection Online Information Network (COIN), customized reporting, individual collection programs, CLLA founding members, ACA member, fully-bonded, contingent-based fee structure, proprietary computer collection system. Lyon Mercantile Group Provides detailed and comprehensive credit reports, recommendations and monitoring services on 400,000+ commercial businesses, primarily in the furniture, giftware and apparel industries. Lyon Capital Corporation Spot-factoring service provided to Lyon Mercantile subscribers.

Questions to Consider Credentials: How long has the agency been in business? Range of Programs: Does the agency have the capabilities to meet our specific needs? Flexibility: Can the agency customize a collection program to handle our problems? References: What other companies related to ours use the service effectively? Security: Is the firm bonded and insured? Do they maintain a separate trust account? Are they in compliance with state and federal regulations? Affiliations: Are they members of the Commercial Law League? Do they hold the Certificate of Compliance? Resources: Do they have access to credit reports, UCC filings, judgment recordings, bankruptcy filings? Cost: Are their rates contingent on collection? Are they cost effective?

Lyon Collection Programs

Lyon Collection Programs Our core programs are separated into six levels. Each level is unique and designed to provide the client with the versatility needed to handle all types of receivable problems. Pre-collection - letter & letter plus Soft Collections A/R Management Intensive Collection In-house attorney representation CLLA attorney representation (litigation services) All of the programs are customized to meet a client’s individual collection needs and work seamlessly with their back office operations. i.e. wording of correspondence, phone dialogue, days between correspondence, phone contact, reporting etc.

Pre-Collection Letter Program Pre-Collection: Letter Series Programs----Three Programs---- Three Levels of Contact Lyon Collection Letter (Accounts age: 15-30 days) One letter: claim is closed upon placement and can be reopened upon clients’ request. Designed to provide a cost effective pre-collection strike. Letter provides the debtor with all the necessary information to contact the client directly. Application: NSF checks, slow pay accounts that need a reminder, early warning notice to high balance or risky accounts. Lyon Collection Letter Series (Account age: 30-60 days) Three letters: letters are mailed 10 days apart. Letter content escalates towards collection/legal consequence. Final letter acts as a Free Demand Letter, debtor has 10 days to resolve before account is transferred to Intensive Collections. Application: Initial collection action to help manage account base, assist internal staff, early warning for high balance or risky accounts. Lyon Collection Letter Series Plus (Account age: 30-60 days) Initial letter is mailed on day 1, phone call is on day 11, the second letter is mailed on day 20 and the final letter is mailed on day 30. Letter content escalates towards credit/collection/legal consequence. Phone call is defined as a direct contact with the primary contact.

Soft Collections Phone Based Program Modeled like a traditional phone call based A/R department. Key Feature: our staff calls as a 1st party, a contracted vendor of the client, not as a 3rd party. This enables us to contact the debtor and facilitate payment while maintaining a non-collection tone. Account age: 30-60 days. Application: This provides the flexibility to maintain existing relationships (no “Collection” ill will) while providing the contact required to keep your DSO in line.

A/R Management Phone & Letter Program Modeled like a traditional collection program, letter accompanied by phone calls. Key feature: our staff calls as Lyon Mercantile in an A/R management role. All correspondence is on Lyon Mercantile letterhead and phone contacts are by Lyon Mercantile staff representing your firm in an accounts receivable capacity. Account Age: 30-90 Application: Provides the client the flexibility to maintain existing relationships, while providing a stronger collection approach then the Soft Collection program

Intensive Collections Traditional collection program Managed collection process. Combining daily contact with escalating consequence. Correspondence is on Lyon Collection letterhead and phone contacts are made daily contacts are by Lyon Collection staff. Account Age: Average is 90+, any account that shows signs of trouble Application: Provides the client with the necessary resources to effectively manage their DSO and Aging while preparing for possible legal action. The unresolved account is forwarded to our in-house Legal Department. The fee structure does not change.

In-House Legal Department In-house Attorney Representation Final step prior to placement with a local attorney. All calls and correspondence are from our corporate councils office, debtors are made aware that this is the last opportunity to resolve the account. Litigation is mentioned as a final recourse. Our in-house Legal Department acts as forwarding agent to the CLLA attorneys. Contingent rate still applies. Account Age: Heavily disputed, aged account, etc. Application: Provides the client with the advantage of attorney representation while not having the additional time and financial responsibilities that litigation can present. Unresolved claims are placed with a CLLA attorney in the debtor’s area for review.

Commercial Law League of America Attorney Representation Litigation Lyon utilizes attorneys from all the major law lists. Lyon is able to find local council to litigate your claim in every county in the country. Our affiliations also enable us to provide help internationally. Our legal staff manages the process from start to finish and since all our attorneys are collection specialists many cases are resolved prior to filing suit. Lyon utilizes attorneys from all the major law lists. Lyon is able to find local council to litigate your claim in every county in the country. Our affiliations also enable us to provide international representation. Our legal staff manages the process from start to finish and since all our attorneys are collection specialists many cases are resolved prior to filing suit. Due to volume in major metropolitan areas, Lyon has secured relationships with the attorneys where most non-contingent suit fees are waived.

The Complete Package

The Complete Package Remittance Policy and Procedure Customer Service Guarantee - Two Point Contact System Commercial Law League Affiliation Credit Reports, Skip Tracing, Judgments and Liens Submitting Accounts C.O.I.N Program (Online access to claims) E-Collect System

Remittance Policy and Procedure Lyon provides a full array of remittance policies To ensure optimal cash availability, Lyon’s Bill and Remit Program enables the client to receive all payments immediately. All payments received are recorded and mailed directly to the client. For clients with limited accounting resources Lyon’s Standard 21-Day Remittance Program provides timely cash flow and efficient reconciliation. All payments received are processed and mailed in 21 days. Security-conscious clients can utilize Lyon Lock Box Remittance. All payments received are deposited into a client-secured Lock Box. Lyon’s accounting software is capable of accepting all forms of payment i.e., wire transfers, credit card payments, foreign currencies, ACH payments, etc.

The Complete Package Customer Service - The Two-Point Contact System Realizing collection is more then just recovering money, Lyon has created a customer support system unmatched in the industry. The Two-Point Contact System was created to alleviate the “just a number feeling” predominate in business today. When submitting claims with Lyon, each account is assigned a two-member team. The Two-Point Contact System provides the client with a means to resolve any questions regarding their account. In the event the primary contact is not available, the second contact will handle all inquiries. All clients reserve the right to contact either VP of Collections to resolve any situation.

Complete Package Con’t Lyon’s affiliation with the Commercial Law League of America Lyon is a charter member of the Commercial Law League Agency Section. Our membership is contingent upon maintaining a high standard of professionalism in our relations with our clients and debtors. The Code of Ethics (see attached) outlines the stringent requirements necessary to maintain and receive the coveted Certificate of Compliance. Part of the membership also requires that we are bonded and all funds collected are kept in a non-interest-bearing trust account. Lyon’s Investigation Division (Commercial Credit Reports) Lyon searches national databases daily extracting bankruptcy, tax lien, judgment and UCC filing information. Commercial Credit information is available through our affiliate Lyon Credit Services. The credit information combined with our nearby skip-tracing system and enrollment in several internet based credit/asset information services enables our Collection Department to locate most debtors and confirm information.

Complete Package Con’t Submitting Accounts Lyon’s proprietary computer system enables us to adapt our programs, when necessary, to your system. We can accept accounts for collections via disc, tape, fax, Internet and through our on-line service. (COIN) Lyon’s On-Line Service Lyoncredit.com provides clients with 24/7 account access. Clients can review accounts by account status, account number, claim number and debtor name. Up-to-the-minute contact information is accessible, as well as payment information. Clients are able to interact with the collection staff by typing notes directly to the collector handling the claim. Accounts that require client review are earmarked and easily accessed.

Complete Package Con’t E-Collection A paper free relationship can be a reality. Conduct your business via email with Lyon E-Collect. E-Collect lets you communicate directly with our collectors. Questions and disputes are easily answered and resolved. No more phone tag, busy fax numbers or unnecessary paperwork. Payment notifications, status reports and claim updates are sent daily to your inbox. Lyon E-Collect, it’s electronic, easy and efficient.

The Right Choice

The Right Choice Whether dealing with Fortune 50 companies or small family-run businesses, Lyon has proven that experience and service are the keys to developing successful relationships. Trusting a vendor in today’s business environment is a risky decision. Size doesn’t matter, nor time-tested collection techniques. It’s the ability to adapt to a client’s needs and desires. Our experience (129 years in the business), flexibility (customized collection programs and remittance policies), credentials (complete compliance with state and federal collection regulations, CLLA membership, ACA membership) and commitment (Two Point Contact System, COIN Program) is what makes Lyon Collection Services the right choice.