Understanding the Debtor’s Psychology Many debtors believe that if an invoice is 180 to 360 days past due, they’ll never have to pay it—at least not in full. Others simply take their time, knowing they won’t face serious consequences. But slow-paying customers can be “retrained” into becoming reliable, profitable long-term accounts—with consistent, proactive attention. Here’s… Read more »
B2B Credit and Collection: Best Practices for Healthy Cash Flow
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how to optimize your credit and collection operations: Leverage Technology Cloud-Based AR Software: Say goodbye to outdated spreadsheets and hello to automation!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… Read more »
A/R Invoice Collectibility By Age
The average collectibility for B2B invoice receivables by age can vary widely depending on industry, customer base, economic conditions, and credit practices. However, a general trend can be observed in how the likelihood of collection changes over time. The time for outside, “third-party” collection agency action is when the debt may still be collectible, best… Read more »
A/R Deduction Recoverability by Age
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…. Read more »
Collection Agency Should be Part of Your Collection Workflow
In today’s challenging economic environment, businesses of all sizes grapple with cash flow disruptions. Collecting payments within agreed-upon terms becomes increasingly difficult, especially from commercial clients. To maximize your collection efforts and stabilize cash flow, it’s critical to reassess your collection strategy—including partnering with a third-party collection agency like Leib Solutions. Timely referrals to a… Read more »
Machine Learning in Credit & Collection Scoring
Managing receivables is a crucial aspect of B2B financial management. Late or unpaid invoices and bad debts can significantly impact cash flow, causing businesses to struggle to meet their financial obligations. Companies rely on various tools, including payment and credit scoring, to prioritize their B2B collection activities to stay on top of outstanding payments. Payment… Read more »
9 Best Collection and Accounts Receivable Metrics
Understanding DSO, DDO, and Other Accounts Receivable KPIs A/R turnover – the credit-to-cash cycle – and working capital are critical to your business, so it is essential to monitor the Key Performance Indicators (KPIs) and other metrics that track your company’s credit, collections, and deduction management health. In addition, businesses have become more complex, so receivable performance… Read more »
Collection Best Practices That Increase Cash Flow
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… Read more »
Leib Receives Coveted A.M. Best “Expert” Award for the 15th Year
We are proud to announce that A.M. Best has, for the 15th straight year, selected Leib Solutions as one of a handful of companies in the world receiving the coveted “Expert Service Provider” designation awarded for business debt collection and accounts receivable services. Leib Solutions has been in the commercial collection industry for over 35… Read more »
Digital Signatures in Credit and Collections – A Best Practice
A digital signature is a cryptographic technique to provide authenticity, integrity, and non-repudiation of electronic documents or data. It is essentially an electronic version of a handwritten signature that provides assurance that the document or message has not been altered and was indeed signed by the claimed sender. A digital signature is created using a… Read more »
