Christopher Kessler
Freehold, NJ (USA)
Role(s):
Founder/Owner/Principal
Kessler & Mortorano Associates
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Startup
Location:
Freehold
Industry:
Finance
Year Founded:
2007
Number Employees:
1-10 people
Description:
One Line Pitch:
Boutique collection agency seeks growth capital; phenomenal business opportunity for profitability and growth in a profitable industry.
Business Summary:
The Company is a debt collection agency concentrating in collection of consumer and commercial distressed debt. KMA provides collection services to business owners, financial institution, medical practitioners, telecommunications, insurance companies and more. Our target market is any business that extends credit to a business and/or consumer.
Management:
Christopher Kessler is a first generation collector; he has been an active member of the collection industry for over 16 years. Christopher started his career as a front-line collector in 1992. Throughout his career he has filled the positions of Legal Coordinator, Corporate Trainer, Collection Manager and Operations Manager.
Customer Problem:
Receivable outsourcing is on the rise as many businesses do not have sufficient manpower and/or resources available to maintain and collect their delinquent accounts.
Product/Service:
We provide our collection service on a contingency basis. Our clients pay nothing unless we collect their money. We provide all the labor technology and attorneys when suit is necessary.
Target Market:
Market research shows in 2005 business placed 141 billion dollars with 3rd party collection agencies. 39 billion dollars was returned to those businesses. That is an average recovery rate of 22%. Our target market is medical practitioners, hospitals, financial institutions, banks, credit unions private label and any business extending credit to consumers and/or businesses.
Customers:
KMA has more than 250 clients placing delinquent accounts for collections. Some of our core clients are: Nacirema Industries, TD BankNorth, Center for Oral Maxillofacial Surgery and Monmouth Gastroenterology.
Sales/Marketing Strategy:
Sales will be kept in-house. We plan to focus on banking, medical industries media advertising waste management and branching out to all business that extend credit. We will gain exposure by participating tradeshows, press releases and B2B network meetings. Our marketing campaign will include: telemarketing, print advertising, Yahoo, Google, (URL removed) and other web based marketing.
Business Model:
Contingency Collection Service- the standard rate for this service is 33.33% of the monies recovered. Legal Facilitation- the standard rate for this service is 45% of the monies recovered.
Competitors:
The collection industry is fragmented; the size and scope of the players are extremely varied. The Company participates in a collection industry which involves first party collections, third party collections and debt purchasing. Market research shows there are currently 6500 collection agency nationwide. The top 25 nationwide agencies had revenues ranging from 32 million to 700 million dollars in 2005.
Competitive Advantage:
KMA’s recovery rates are 20% higher than other agencies. Our customer service combined with our state of the art technology which includes DebtNet5 CMS and Client Access Web creates iur competitive advantage.
Financial Information:
Funding Stage 0-500K in Trailing 12 months Revenue
Seed Capital by Owners: $275,000
Monthly Burn Rate: $1,916
Capital Seeking: $350,000
Management:
Christopher L. Kessler, President
Michael Mortorano, Principal
Robert Sack, VP of Sales
Advisors:
Lawyer: Michael Coslit
Accountant: Nicholas Lucarella
Investors:
None
Finacials: 2007 2008 2009 2010 2011 2012
Revenue: 126 281 1,056 1,654 2,241 2,827
Expenditures: 302 258 713 1,069 1,309 1,549
Net: (176) 23 343 585 931 1,278
*In thousands(000) in USD-US Dollar