Every business cherishes its reliable, long-standing clients. They pay on time, communicate clearly, and contribute consistently to your bottom line. But what happens when these “good clients” start to falter? When late payments become the norm, excuses pile up, or communication suddenly stops?

It’s a scenario many businesses dread, and one that often signals more than just a momentary oversight. It can be a tell-tale sign of deeper financial distress within your client’s own operations. Missing these subtle cues can lead to significant revenue loss, strained relationships, and a draining of your internal resources.

At Leib Solutions, we believe in a proactive, ethical approach to accounts receivable management. Understanding the financial health of your client portfolio is not just about protecting your own cash flow; it’s about anticipating challenges, fostering resilient partnerships, and making informed decisions. This post will equip you with insights to spot those early warning signs and guide you on how to respond strategically and ethically.

The Subtle Shifts: Early Warning Signs to Watch For

The first indicators of financial trouble are rarely a dramatic collapse. Instead, they often manifest as subtle deviations from established patterns. Training your team to recognize these changes is crucial.

1. Shifts in Payment Behavior

This is often the most direct, yet sometimes overlooked, signal.

• Increasing Payment Delays: A client who once paid consistently at 30 days suddenly pushes to 45, then 60, then 90. It’s not just a single late payment, but a growing trend of tardiness.
  
• Partial Payments: Receiving only a portion of the outstanding invoice without prior agreement. This can be a tactic to string out payment or manage limited cash flow.
• Frequent Payment Disputes: Suddenly, old invoices are being disputed for minor issues, or new, vague “concerns” arise that delay payment. This can be a deliberate stalling tactic.
• Requests for Unconventional Payment Terms: A client accustomed to standard net-30 terms now requests installment plans, extended terms, or asks to pay in atypical ways (e.g., through third-party services they didn’t use before).
• “Check’s in the Mail” Syndrome: Repeated promises that payment is “just about to arrive,” followed by no actual payment.

2. Communication and Operational Cues

Beyond the numbers, how your client interacts and operates can offer valuable insights.

• Communication Avoidance: Your calls or emails to key contacts in their finance or procurement departments go unanswered, or responses become evasive and non-committal.
• Reduced Order Volume/Frequency: A significant and unexplained drop in the quantity or regularity of orders from a previously reliable client. This could indicate a slowdown in their own business or a shift to cheaper suppliers.
• High Personnel Turnover: Especially in their finance, procurement, or upper management. This can signal internal instability or a scramble to cut costs.
• Increased Vendor Shopping: You notice your client suddenly soliciting bids from numerous new suppliers, even for services or products they previously sourced exclusively from you. They might be desperately searching for lower costs.
• Complaints about Their Own Clients: Hearing from them about their struggles to collect from their customers. While this can elicit empathy, it also indicates their own A/R challenges.

3. Public and Market Indicators

These require a bit more proactive monitoring but can provide macro-level insights.

• Negative Public Perception: Unfavorable news articles, negative social media chatter, or a sudden downturn in their public reputation.
• Industry Downturn: Being aware of broader economic challenges or specific trends impacting your client’s industry. If their sector is struggling, they likely are too.
• Layoffs or Restructuring Announcements: Public statements about workforce reductions, significant operational changes, or a merger/acquisition that seems like a distress signal.
• Changes in Commercial Credit Ratings: While not always publicly accessible, a significant drop in their credit score from agencies can be a strong indicator of rising risk.

The Responsible Response: Navigating Difficult Conversations

Spotting the signs is just the first step. How you respond can significantly impact your recovery rates and, crucially, the long-term health of your business relationships. The key is to move from a reactive, accusatory stance to a proactive, empathetic, and strategic one.

1. Internal Alignment: Ensure your sales, accounts receivable, and management teams are on the same page regarding the client’s status and the chosen response strategy. Inconsistent messaging can erode trust.
2. Proactive and Empathetic Outreach:
   • Shift the Tone: Instead of immediately demanding payment, initiate a conversation with an empathetic tone: “We’ve noticed a recent change in payment patterns, and we wanted to check in to see if everything is alright on your end and if there’s anything we can do to help.”
   • Listen Actively: Be prepared to listen more than you talk. Your goal is to understand their challenges, not to preach.
   • Offer Solutions (If Appropriate): If their distress is temporary, can you offer a short-term, mutually agreed-upon payment plan? This gesture can build immense goodwill.
   • Maintain Professionalism: Regardless of their situation, always communicate with respect and professionalism.
3. Document Everything: Meticulously record all communications, agreed-upon terms, and payment promises. This is vital for clarity and, if necessary, for any future recovery efforts.
4. Know When to Draw the Line: While empathy is crucial, a business must protect itself. There comes a point where continued forbearance becomes detrimental. Establish clear internal thresholds for when to transition from a supportive partner to initiating a more formal collection strategy. This line is often blurred for internal teams, which is where external expertise becomes invaluable.

When Internal Efforts Fall Short: The Strategic Role of a Specialized Partner

Even with the best intentions and internal protocols, managing a financially distressed client can be incredibly challenging. This is where the specialized expertise of a commercial collections company like Leib Solutions becomes a strategic asset.

• Objective Perspective: Your internal team has existing relationships and may be emotionally invested. A third party brings objective distance, allowing for clearer, more effective negotiation without damaging long-term ties.
• Relationship Preservation through Professionalism: Our “No Noise” approach is specifically designed to recover funds while minimizing friction and maintaining the viability of your client relationships. We act as a professional buffer, allowing you to focus on your core business.
• Specialized Expertise and Resources: We possess the legal knowledge, negotiation acumen, and advanced tools to navigate complex financial situations. This includes understanding the nuances of commercial law and effectively managing disputes.
• Efficiency and Focus: Engaging an expert allows your internal A/R team to focus on current accounts and healthy relationships, significantly reducing administrative burden and freeing up valuable resources.
• Improved Recovery Rates: Often, early engagement with a specialized agency, even at the first signs of trouble, can lead to significantly higher recovery rates than prolonged internal efforts. Our experience helps us assess the true likelihood of recovery and implement the most effective strategies.

Recognizing when a good client is heading down a difficult financial path is a critical skill for any business. Acting ethically and strategically, whether internally or through a specialized partner, protects your cash flow, preserves relationships, and ultimately strengthens your overall financial resilience.

Ready to Proactively Safeguard Your Accounts Receivable?

If you’re noticing these warning signs in your client portfolio and are seeking an ethical, effective partner to navigate complex financial challenges, Leib Solutions is here to help.

Contact us today for a confidential consultation.

Extending credit to B2B customers can be a powerful driver of sales growth, but it requires careful management to minimize financial risk. Here’s how to optimize your credit and collection operations:

1. Leverage Technology

• Cloud-Based AR Software: Say goodbye to outdated spreadsheets and hello to automation! Modern accounts receivable software streamlines your entire order-to-cash process, automating tasks like credit checks, collections, invoice generation, payment processing, and reporting. This not only saves time and reduces errors but also provides real-time visibility into your cash flow. Look for features like:
  • Automated credit scoring: Integrate credit scoring systems to quickly assess customer risk.
  • Customizable workflows: Set up automated reminders, escalations, and follow-up actions based on customer segments and payment behavior.
  • Real-time reporting and analytics: Track key metrics like Days Sales Outstanding (DSO), Collection Effectiveness Index (CEI), and bad debt expense to identify trends and areas for improvement.
  • Seamless integration: Ensure your AR software integrates with your accounting system and other business applications for a unified view of your finances.

2. Establish Clear Credit Policies

• Define the essentials: Develop a comprehensive credit policy document that outlines:
  • Credit limits: Determine the maximum amount of credit to extend to each customer, considering factors like their financial stability, credit history, and industry risk.
  • Payment terms: Clearly define payment due dates (e.g., Net 30, Net 60) and acceptable payment methods.
  • Early payment discounts: Offer incentives for prompt payment to encourage timely cash flow.
  • Late payment penalties: Clearly communicate consequences for late payments, such as interest charges or late fees.
• Go beyond credit scores: While credit scores provide a useful snapshot of creditworthiness, don’t rely on them solely.
  • Obtain business credit reports: Use agencies like Dun & Bradstreet or Experian to get a detailed view of a customer’s credit history, including payment trends, any legal filings, and other relevant information.
  • Analyze financial statements: Review the customer’s balance sheet and income statement to assess their financial health and ability to meet their obligations.
  • Contact trade references: Reach out to other businesses that have extended credit to the customer to gain insights into their payment behavior.
• Segment customers: Develop different credit policies for different customer segments. For example, high-value customers or those with a long history of on-time payments may qualify for more favorable terms.

3. Monitor Payment Behavior

• Proactive monitoring is key: Don’t wait for payments to become overdue. Use your AR software to:
  • Track payment activity in real-time: Monitor payment dates, amounts, and any discrepancies.
  • Generate aging reports: Regularly review aging reports to identify overdue invoices and prioritize collection efforts.
  • Analyze payment patterns: Pay close attention to any changes in a customer’s payment behavior, such as consistently late payments or a sudden increase in disputes, which could indicate potential financial distress.

4. Streamline Invoicing and Payments

• Automated invoicing: Eliminate manual data entry and reduce errors by automating your invoicing process.
  • Ensure timely delivery: Send invoices electronically to ensure prompt receipt by customers.
  • Customize invoice templates: Maintain a professional image and include all necessary information.
• Offer multiple payment options: Make it easy for customers to pay you by offering a variety of convenient payment methods, such as:
  • Online payments: Provide a secure online portal for customers to make payments using credit cards or bank transfers.
  • Credit card payments: Accept credit card payments to offer flexibility and improve cash flow.
  • ACH transfers: Enable automated clearing house (ACH) payments for efficient electronic funds transfer.

5. Master the Art of Collections

• Take a graduated approach: When payments are overdue, start with gentle reminders and gradually escalate your collection efforts.
  • Friendly reminders: Send automated email or SMS reminders for recently overdue invoices.
  • Formal communication: If reminders are ignored, send formal collection letters or make phone calls to discuss the outstanding payment.
  • Negotiation and flexibility: Be willing to work with customers who are facing genuine financial difficulties. Consider offering payment plans, extending payment deadlines, or negotiating settlements to recover at least a portion of the debt.
  • Collection agencies: As a last resort, consider engaging a professional collection agency to recover the debt.
• Maintain thorough documentation: Keep detailed records of all collection activities, including communication logs, payment agreements, and any legal actions taken.

6. Continuous Improvement

• Regularly review your policies and procedures: The business environment is constantly changing, so it’s important to review your credit and collection practices periodically to ensure they remain effective and aligned with your business goals.
• Track key performance indicators (KPIs): Monitor metrics like DSO, CEI, and bad debt expense to measure the effectiveness of your credit and collection efforts. Analyze trends and identify areas for improvement.
• Stay informed about industry best practices: Keep up-to-date on the latest trends and technologies in credit and collections to optimize your processes and stay ahead of the curve.

By implementing these comprehensive best practices, you can transform your credit and collection operations from a reactive function to a strategic asset, driving sales growth, strengthening customer relationships, and ensuring a healthy cash flow for your business.

Accounts Receivable deductions can dilute revenues from 5%  in industrial companies to 20% in consumer products companies. These deductions arise from various issues, including ordering and billing errors, returned merchandise, pricing discrepancies, trade promotion deals, payment discounts, shipping errors, and non-compliance with customer vendor policies.

Deduction overcharges, far from being exceptional, are a common occurrence. Many deductions contain errors that can significantly impact sellers’ profits. For instance, up to 50% of returns are overstated due to SKU, price, or quantity errors. Post-audit deductions, which result from post-payment reviews, can be over 75% incorrect. Errors in trade deals and volume discount deductions are often substantial. These inaccuracies underscore the need for efficient reconciliation and resolution processes to mitigate the potential for significant and sometimes hidden revenue and profit losses.

Reconciling deductions against related credit memos is challenging due to the volume and variety of SKUs. Our extensive experience and specialized software enable us to reconcile and identify overcharges on any scale, even spanning several years for a trading partner.

Deduction Staff and Systems

Other crucial factors in managing deductions include the experience of your staff and the time available to pursue these claims. The most effective A/R systems utilize automated bots to access claims from major retailers before deductions are made, allowing more time to resolve issues before automatic deductions occur. Some chain retailers even have time periods, say 60 days, after which they consider their claim valid and won’t discuss it. This underscores the need for a strategic approach to deduction management, considering both your staff’s capabilities and the process’s time constraints.

Twenty years ago, many deductions were “negotiable,” and 50/50 across-the-board settlements were sometimes possible. Today, you must prove the customer is wrong in specific detail and do it quickly. While most deductions are generally accurate, the average recoverability on gross deducted amounts ranges between 10% and 20%, depending on factors like your industry, customer base, processes, systems, and the speed of your investigation. There is a lot of money involved.

Information You Get from Analyzing Deductions

Analyzing customer Accounts Receivable (A/R) deductions can uncover various operational errors impacting a company’s financials and operations, so your systems should include root cause accountability, enabling you to eliminate systemic process failures. Here are some common types of operational errors that can be identified:

1. Pricing Errors

• Incorrect Pricing: Not billing according to the P.O. terms.
• Misapplied Discounts: Applying discounts incorrectly or not applying agreed-upon discounts.
• Price Changes Not Updated: Customer failure to update systems with current pricing information.

2. Shipping and Delivery Errors

• Incorrect Shipments: Using the wrong carrier, not calling for appointment windows.
• Late Deliveries: Delivering products later than agreed, causing penalties.
• Shipping Damage: Products damaged during shipping, leading to returns or deductions.
• Freight Charges Errors: Incorrectly billed shipping and handling charges.

3. Compliance and Contractual Errors

• Non-Compliance with Vendor Policies: Not adhering to customer’s specific vendor compliance requirements.
• OTIF failures

• Contractual Non-Compliance: Failing to meet terms and conditions stipulated in contracts.
• EDI Errors: Issues related to Electronic Data Interchange, such as incorrect formats or missing data.

4. Trade Promotion and Discount Errors

• Promotion Misapplication: Incorrectly applying trade promotions and discounts.
• Unauthorized Deductions: Customers taking unauthorized deductions without proper agreement.
• Rebate and Allowance Mismanagement: Errors in calculating or applying rebates and allowances.

5. Returns and Refund Errors

• Misprocessed Returns: Incorrect processing of returned goods, leading to overstated returns.
• Return Authorization Issues: Not properly authorizing returns, resulting in disputes and deductions.
• Restocking Fee Misapplication: Failing to apply restocking fees where applicable.

6. Order Processing Errors

• Order Entry Mistakes: Errors in entering orders into the system, leading to incorrect fulfillment.
• Miscommunication: Issues stemming from poor communication between sales, billing, and shipping departments.

7. Inventory and Stock Management Errors

• Stock-Out Situations: Failure to fulfill orders due to inventory shortages.
• Overstock Situations: Accumulating excess inventory leading to potential obsolescence or markdowns.
• Incorrect Stock Levels: Discrepancies between actual and system-recorded inventory levels.

8. Data Entry and System Errors

• Manual Entry Errors: Mistakes in entering data manually, leading to inaccuracies.
• System Integration Failures: Problems with the integration between different systems, causing data inconsistencies.
• Outdated Information: Using outdated customer or product information in transactions.

By identifying and addressing these operational errors through A/R deductions analysis, companies can improve their processes, reduce revenue leakage, and enhance overall operational efficiency.

Lastly — Time is of the Essence to Recovery of Deduction Errors

The collectibility of deductions varies based on the type of claim, the systems and documentation you have, and the time it takes to complete your investigation and reconciliation.

A critical factor is the time it takes to research, reconcile, and prove overcharges, which often takes months, during which the likelihood of collectibility plummets. Deduction value depreciates far faster than invoice receivables so time is of the essence in tackling this challenge.

For instance, while an average overcharge rate of 14% might be assumed, this figure can be misleading. Some deductions may be entirely uncollectible (0%), while some may be fully recoverable (100%). The true nature of each deduction is only revealed through a thorough investigation.

This is where the value of intelligent automation and experienced deduction audit staff becomes evident. Automated A/R systems, like Smyyth’s advanced Carixa, for example, can cut the time it takes to document deductions from weeks to one or two days,  immensely increasing the collection rate of deduction errors. Professional staff with access to this type of software could produce ROI of 100% or more.

From the practitioners at Smyyth LLC

Accounts receivable commercial collections at many companies are still in the green eyeshade era with out-of-date processes, leaving many opportunities to improve results. However, like many repetitive processes, collections is a production operation and can be engineered to improve cash flow, reduce DSO, and slash the disputes that result from letting unpaid accounts go stale.

This is a zero-sum game. If you do not aggressively work to collect your receivables, the customer will pay other vendors who were more assertive in their collection follow-up. Your customers learn from your practices. Unfortunately, many creditors wait until the customer is seriously past due before making the first collection contact. 

At Leib Solutions, considered one of the best commercial collection agencies, we know cash flow is the lifeblood of every business, and success or failure depends mainly on how well accounts receivable is managed. Collecting receivables more quickly enables companies to reduce bank borrowing, invest more in growth, and improve profits. Our experience is that delinquent A/R can be dramatically reduced, even cut in half. Here are some basic ideas to implement in your organization:

1. Credit and Collection Policy. Every company needs a credit and collection policy that gives the department the appropriate framework to work. This policy (and procedures) should be by management – detailing the criteria, parameters and tools used (restricting credit, collection agencies, lawyers, etc.). Even a one-page credit and collection policy may be enough for a small company. Larger companies need to go into much more detail.
2. Advise the Customer of Your Policies. The customer should receive a written explanation of your credit and collection policies- how you expect them to behave. Ideally, make it part of your Credit Application, but always email it afterward, so they understand the business rules.
3. Credit Application. Use a credit application which includes your policies and purchase terms, and use e-signatures to have an official, signed record. The buyer invariably has their terms on the back of their purchase order, which will not be favorable to the seller, so it is common sense to establish your business rules upfront and get it signed.
4. Contact Data. Your customer contact data should always include the telephone and email addresses of your payables contact, controller, and customer management. You should also have the owner’s cell phone number if the customer is small. All of this information should be on your customer credit application. 
5. E-signatures. If you need documents signed, such as settlements and promises to pay, use e-signatures and forget faxes. Digital signing is effortless and is legally binding. It simplifies getting any agreements signed.
6. Correct Your Customers’ Habits. Large customers use software to optimize their accounts payable: they track how soon and persistently you follow up and pay you accordingly. Small companies follow the same practice without the software, often waiting until you call. They pay you based on how you train them to pay you through your everyday collection practices.
7. Set Up Standard Procedures and Train Staff. Do not leave it up to collectors to make up their own policies and rules about how soon or frequently the customer should be contacted. Most people do not like to ask for money; without rules, they may not call with the consistency required for effective collection results.
8. Letter Templates and Call Scripts. How much do you want your staff to exercise their inner artist? Do not leave it up to staffers to make it up as they go along or to develop personal collection strategies. Establish the rules, and provide standard collection letter or email templates and scripts for telephone and voice mail. Email vs. letters? There is no contest, as email is immediate and less work, but just as with form letters, you need to use pre-formatted collection emails.
9. Prioritize Your Work. Even with experienced collection staff, you need to prioritize collection activity so your staff works the receivables that offer the most significant cash flow payback. If you have an advanced system, you can also employ risk or payment scoring to assign the accounts needing first attention. You may also consider outsourcing all or part of the function to a qualified agency, which usually produces more focused, better results and usually at less expense than full-time staff.
10. Assign Goals and Track Results by Department and Collector. Collections is “production” work, and you need to develop clear goals for monthly cash and delinquency targets and the number of daily calls and contacts (since you need to have all customers touched).
11. Reporting. Daily reporting should include calls made, promises obtained, disputes resolved, etc. Monthly reporting should roll up the daily results, plus report the financial results – Cash Collected, DSO, Delinquencies, etc. Of course, the department goals must match up against the corporate objectives of your CFO.
12. Make Paying Easy. Offer multiple ways to pay, including ACH and credit card, with your smaller customers. Intuit QuickBooks, among many, has a very effective and free ACH offering for e-billing and a payment module that integrates with QuickBooks.
13. Systems and Workflow. If you have sizable receivables outstanding or many customers, or if you still use spreadsheets, you must acquire an A/R workflow system to manage collections and automate routine tasks. See Carixa for an idea of what a comprehensive, integrated “Software as a Service (SaaS)” system can do for you. Deploying this powerful collection software guarantees faster collections, lower DSO, and fewer delinquencies. As with all SaaS offerings, it is internet browser-based, so there is no software to install or hardware to purchase.
14. FDCPA Regulations. The Fair Debt Collections Practices Act doesn’t apply to B2B transactions, but always keep in mind that you must comply with the FDCPA if you are dealing with consumers. Regardless, all customers should always be handled professionally and consistently, which reflects your corporate culture, even the few abusive customers.
15. Collection Activity Cycle. Don’t wait as long as your competitors to make the first collection contact; use email to your advantage. Get the money first. Here’s an infographic with eight tips on what you should do to maximize your returns in the collection activity cycle:

Outside Help: Collection Agencies and Outsource Services

Professional receivables organizations such as Leib Solutions or Smyyth.com offers both First-party and Third-party collection services. First-party is another name for customer service-oriented outsourcing of non-seriously delinquent receivables under the client’s name. Generally, first-party services are performed for a low account service fee or a low percentage fee. 

Third-party collections are the traditional “collection agency” services when accounts are old and uncooperative, with fees commensurate with the age of the receivable. 

Some creditors wait until there is little hope of collection, telephones disconnected, or bankruptcy before calling a qualified collection agency. This delay is evidence of failed collection management. Often the company is concerned about collection fees, but the old saw “better to get 70% of something than 100% of nothing” applies here. It’s just common sense.

The first step in improving your company’s cash flow is to take the first step. Lay out a plan of attack, or, if you want some advice, contact us. We will be happy to help in any way we can.

The Fair Debt Collection Practices Act (FDCPA) is a federal law in the United States that regulates the behavior of third-party debt collectors who collect debts on behalf of others. The FDCPA establishes rules and guidelines that debt collectors must follow when communicating with consumers. The FDCPA does not cover business-to-business debts or collection of certain torts, even from consumers. It’s worth noting that there may be other federal or state laws that govern the collection of debts arising from torts, even if the FDCPA does not apply.

Here are some key rules outlined in the FDCPA:

1. Prohibited communication practices: Debt collectors cannot contact a consumer before 8:00 a.m. or after 9:00 p.m. local time or at any time they know is inconvenient. They also cannot communicate with a consumer at their place of employment if the employer prohibits such communications. Debt collectors cannot harass, oppress, or abuse a consumer or use false, deceptive, or misleading practices to collect a debt.
2. Verification of debts: Within five days of the initial communication, a debt collector must send a written notice to the consumer that includes the amount of the debt, the name of the creditor, and a statement informing the consumer of their right to dispute the debt. If a consumer disputes the debt, the debt collector must cease collection activities until they have verified the debt.
3. Cease and desist: If a consumer notifies a debt collector in writing that they want the collector to cease communication, the collector must stop contacting the consumer except to confirm that further contact will cease or to notify the consumer that the debt collector or creditor may take a specific action.
4. Prohibition on third-party disclosures: Debt collectors cannot disclose information about a consumer’s debt to third parties except in limited circumstances, such as to a consumer’s attorney, a credit reporting agency, or to the original creditor.
5. Remedies for violations: Consumers can sue a debt collector for violating the FDCPA and may be entitled to actual damages, statutory damages up to $1,000, and attorney’s fees.

These are just some of the key rules outlined in the FDCPA. The entire law text can be found on the Federal Trade Commission website. Both consumers and debt collectors need to understand and follow the guidelines outlined in the FDCPA to ensure fair and ethical debt collection practices. Responsible commercial collection agencies such as Leib work within the spirit of the FDCPA, even if not required.

New Release

February 4, 2021

Leib Solutions LLC  Achieves HIPAA Compliance 

SUMMARY:   Leib Solutions has demonstrated its effort toward HIPAA compliance by completing Compliancy Group’s proprietary HIPAA compliance process.

LEIB is pleased to announce that it has taken all necessary steps to prove its effort to achieve compliance with the Health Insurance Portability and Accountability Act (HIPAA). Through the use of Compliancy Group’s proprietary HIPAA solution, The Guard™, LEIB can track its compliance program and has earned the Seal of Compliance™, which is issued to organizations that have implemented an effective HIPAA compliance program through the use of The Guard™.  

HIPAA is made up of a set of regulatory standards governing the security, privacy, and integrity of sensitive healthcare data called protected health information (PHI), which is any individually identifiable healthcare-related information. If vendors who service healthcare clients come into contact with PHI in any way, those vendors must be HIPAA compliant.

LEIB has completed Compliancy Group’s Implementation Program, adhering to the necessary regulatory standards outlined in the HIPAA Privacy Rule, Security Rule, Breach Notification Rule, Omnibus Rule, and HITECH.  Compliancy Group has verified LEIB’s good-faith effort to achieve HIPAA compliance through The Guard. 

Carl Torban, LEIB’s President stated that “Even though we only do business in B2B sectors and this extra protection is not mandatory, completing this compliance process demonstrates our continuing commitment to provide a secure environment for customer information. Our Leib Collect and Carixa™ cloud automated accounts receivable management system is a secure, encrypted platform for our customer data.

About LEIB

LEIB Solutions LLC, a Smyyth affiliate, is one of North America’s leading Commercial Collection agencies with more than 35 years of experience in Accounts Receivable Management. Its agency specialists are experts in their industry segments and, as a result, achieve faster and more successful outcomes. LEIB is committed to high standards, and technology that enables us to maximize recovery and increase revenues while protecting data integrity. 

About Compliancy Group:

HIPAA should be simple. That’s why Compliancy Group is the only HIPAA software with expert Compliance CoachesTM holding your hand to simplify compliance. Built by auditors, Compliancy Group gives you confidence in your compliance plan to reduce risk, increase patient loyalty, and profitability of your organization.  

The Revenue Cycle Function requires excellence in four key areas, each contributing to a company’s success and operational efficiency. Recognizing these focus areas will allow your company to generate a frictionless revenue cycle flow and improve your cash flow, customer service, and overall profitability. When providing B2B collection services for your business, Leib Solutions makes sure to take each of these factors into account to deliver you the best possible ROI.

Credit Management

Credit management is the first facet of revenue cycle management, and it includes the development of credit policy, on­boarding new customers, and managing the trade credit risk exposure of the company. Tools used include analyzing credit reports, financial statements, employing automated credit scoring, credit application processing, checking customer references, collaboration with internal departments (e.g., sales), as well as automated workflow to control customer monitoring and credit operations.

Dispute and Deduction Management

Handling customer deductions may be the most complex job in the accounts receivable department since these “exceptions”  are the result of process, product, promotion, price or shipping errors. Accordingly, a system is required to prioritize, route and track these issues throughout the company for resolution, and to highlight root causes since systemic deduction issues will not be cured otherwise. After investigation, a significant percentage of customer deductions will be found to be erroneous, and must be collected to avoid losing profits.

Cash Application and Accounts Receivable Management

Cash application and accounts receivable management should be automated to handle cash application, EDI, ACH and credit card payments seamlessly. A modern cash application system will be virtually manpower-free and automatically match payments and invoices, credits against deductions, etc., as well as initiating new transactions (for example, debit memos) from the cash application process.

Collections Management

Management of the receivables collection function is critical, yet receives little management attention, or technology investment. Starting with advanced systems to drive and track the process, educate and manage staff, and monitor results, there is much to do — but the payoff is significant.

A well-­run collection function will employ automation that prioritizes, drives, and tracks collection activities governed by corporate rules and standard best practices as part of the system. We have seen performance variances as much as 30% between companies in the same business with the same customers, depending on how they operate and enforce their business rules. Imagine two similar $200 million (sales) companies, one with a DSO of 38 days and the other with 52 days. One has $8 million less cash than the other and more money tied up in working capital, quite unnecessarily.

Partner With An Agency

Leib Solutions is a B2B collection agency that delivers superior accounts receivable and debt collection services in the United States and internationally. Interested in our services? Contact us today!