Small businesses can have special challenges in collecting their receivables because, often, the larger suppliers demand and get priority in payment. Consequently, Leib has developed specific, proactive, fast-acting processes to assure that small business is not penalized with poor cash flow and write-offs.
You need $100,000 of new sales to compensate for a $5,000 bad debt write off (assuming a 5% profit margin).
When a receivable becomes past due, on average it loses 1% or more of its value every week as continues unpaid.
Our collection programs can be “FIRST PARTY” customer service approach under your name, starting on Day 1 or Day 30 past due. When it’s more serious, “THIRD PARTY” collections commences after you are fed up chasing an uncooperative customer, and want to move fast to avoid a write-off. THIRD PARTY collections is an aggressive (yet professional and polite) effort to get your money before it is lost. Either way, you receive our best professional services.
Fast action on your part is the key to successful collection and avoidance of bad debt. We will always move fast to recover your money, but you need to be more aggressive about placing accounts for collection. Wait too long, and you could lose what you are owed.